Cargo clearing agents risk losses as the government moves closer to fully implementing a directive to clear its cargo at various entry points.
The State Department for Shipping and Maritime Affairs has initiated the process of recruiting clearing officers to work under the State-owned Government Clearing Agency (GCA).
Through the Public Service Commission (PSC), the department plans to hire officers who will be responsible for arranging import and export documents, preparing cost estimates and declarations, lodging import/export paperwork, and establishing manifest numbers, among other duties.
The move has drawn criticism from private clearing and forwarding firms, which are currently handling a large portion of government cargo. Members of the Kenya International Freight and Warehousing Association (Kifwa) say the decision will hurt their operations.
“Kifwa has more than 1,200 registered members nationally, with a workforce of more than 200,000 people, who are now poised to lose the government import and export cargo which will directly affect them through job loss and financially,” said Mr John Mghendi, a clearing and forwarding agent based in Mombasa.
Implementation began in August 2023, after a circular from then-Cabinet Secretary for Mining, Blue Economy, and Maritime Affairs, Salim Mvurya, directing all state entities to route their cargo through the GCA.
Reviving the previously dormant agency, located in Shimanzi, Mombasa, aims not only to save the government millions of shillings paid to private firms, but also to improve safety and confidentiality in the clearance of sensitive government cargo.
According to the Kenya National Bureau of Statistics, about 52 percent of cargo cleared at various border points belongs to the government. In Mombasa alone, State cargo amounted to more than 20 million tonnes out of the 36 million tonnes of cargo that passed through the facility in 2023.
With infrastructure projects such as affordable housing and road construction on the rise, government cargo volumes are expected to grow even further.
Although the GCA was originally established to handle government cargo, many MDAs had opted to use private agents over the years due to the perceived inefficiency of the state-owned firm.
The agency’s core functions involve clearing and forwarding ocean, air, and land cargo specifically on behalf of government institutions.
