Port of Mombasa agents drop deposit system for container guarantee scheme

Cargo agents at the Port of Mombasa have abandoned the long-standing cash deposit system and embraced a container guarantee scheme, a change that promises easier and less costly cargo clearance for importers and exporters.

The new model, which was formally adopted on Wednesday by more than 1,000 Kenya Revenue Authority–registered clearing and forwarding agents, replaces the mandatory cash deposits previously demanded before a container could leave the port.

A container guarantee functions as an insurance-like arrangement, either through shipping lines or third parties, ensuring that the shipping line is compensated in case of loss or damage. This protects the shipping company while freeing traders from tying up large sums of money in deposits.

Previously, traders had to pay at least $500 (Sh64,500) for each container as security, while those handling goods in high-risk destinations such as South Sudan and the Democratic Republic of Congo paid up to $5,000 (Sh645,000). This created heavy financial pressure, particularly on small-scale traders, and often slowed clearance of goods.

The guarantee arrangement has been introduced through a partnership between the Kenya International Freight and Warehousing Association (Kifwa) and Viaservice Kenya Limited, a subsidiary of Viatrans, a Swiss-based trade facilitation group.

Kifwa chairperson Fredrick Aloo said the collaboration would ease port operations and cut down the time taken to release containers.
“This partnership will boost efficiency at both the ports of Mombasa and Lamu, cutting cargo clearance time by more than half,” Aloo said.

The scheme is expected to open up more business opportunities, reduce operational delays, and lower overall costs for traders who have long complained about the deposit system.