Key stakeholders in the maritime sub-sector met in Mombasa at a consultative forum to discuss the delayed gazettement of the maritime regulations developed under the Merchant Shipping Act 2009 (MSA 2009). The regulations touch on the operations of clearing and forwarding agents, shipping lines, ship agents, terminal operators and CFS operators. The forum attended by representatives of shipping lines, ship agents, CFS, transporters, cargo owners and clearing and forwarders was seeking a way out of the deadlock. Kenya Maritime Authority charged with implementation of the MSA 2009, and the main drafter of the regulations was not represented at the meeting. 

Over the past three years, port users have been putting pressure on the government to address industry malpractices by a section of maritime service providers who introduce arbitrary charges thereby increasing the cost of doing business in EAC. KSC has consistently maintained that the Act enacted to regulate the maritime industry, will address these malpractices. It is estimated that importers are losing an average amount of Ksh. 3.8 Billion annually in the form of unregulated charges. The forum sought to:

• To critically analyze the existing maritime regulatory framework to provide insights on how existing bottlenecks are contributing to the current cost and inefficiency structure in the maritime sub-sector.
• Share experiences on key regulatory issues in maritime transport and propose ways of improving the regulatory framework.
• Propose strategies for industry to generate the necessary impetus needed to get these regulations gazetted and enforced.
• Inform the KSC lobbying and advocacy plan with regard to the relevant government authorities involved in the maritime sub-sector
• To critically analyze the existing maritime regulatory framework to provide insights on how existing bottlenecks are contributing to the current cost and inefficiency structure in the maritime sub-sector.
• Share experiences on key regulatory issues in maritime transport and propose ways of improving the regulatory framework.
• Propose strategies for industry to generate the necessary impetus needed to get these regulations gazetted and enforced.

Participants acknowledged the current efforts being made to improve the regulatory environment in the maritime sub-sector in the absence of the regulations by way of introducing service level agreements (SLAs) which specify, usually in measurable terms, the obligations of a service provider and those of the customer. KPA and the CFS operators have developed an SLA which has yet to be operationalized.  The meeting however expressed dissatisfaction with the way the final draft was settled upon, citing changes made to the document just before it was forwarded to the AG’s chambers, without consultation of stakeholders. Resolutions made include the need for:

• KMA to share the final draft with all stakeholders for inputs
• Private sector to speak in one voice to push for gazettement
• Amend some of the regulations which are seen to be against free market principles (e.g. Section 16A)
• Include the roles and obligations of government trade facilitation institutions in the regulations.