We take note of the newspaper reports made on the President’s alleged statements on 29th July 2023 regarding the ban on multinationals (including shipping lines) from conducting clearing and forwarding business in Kenya. Please note that we understand that such media publications were not completely accurate in reporting what was factually stated.
Currently, there is no restriction in law barring shipping lines and/or their subsidiaries from carrying out clearing and forwarding business.
Historically, Section 16(1) of the Merchant Shipping Act (2009) was intended to bar shipping lines from being able to directly or indirectly carry out shipping agency and logistics services in Kenya. Section 16(1) was litigated against by various shipping lines for being unconstitutional. The result of this litigation was that Section 16(1) was declared unconstitutional by an order of the High Court of Kenya.
Kenya is a free-market economy and a hub for international investment. Shipping lines in Kenya have contributed to the development of the maritime economy and the inland transportation and logistics industry. This has provided employment to numerous Kenyans, and it has fostered a flourishing environment in which Kenyan industry has been able to export to the rest of the world. Further, some shipping lines have also directly invested in education schemes for Kenyans, which will incubate the next generation of Kenyan entrepreneurs to participate in the global shipping industry.
We urge the government to work with the shipping lines to encourage the growth of the maritime and logistics industry, to incentivise investment and to continue to partner with Kenya and its people - rather than shut down avenues of development.
#shipping