Governor Abdulswamad Nassir has set the stage for a fresh row with the national government and Kenya Ports Authority (KPA) after he announced plans to introduce new levies on shipping containers to generate more income.
Should the proposal be adopted, the county targets to collect more than Sh65 billion annually considering the increase in cargo through the Port of Mombasa.
Mr Nassir’s predecessor Hassan Joho got into conflict with the national government after he introduced similar charges in the 2016/2017 financial year budget plan.
Last week, Mr Nassir said his administration wants companies doing business at the port to be charged levies by the county and not the national government. He revealed that he has written a letter to KPA on the matter.
“Let them pay their fair share even if it will be a small percentage that will not hurt the economy,” he said.
He added: “Why are they being exempted from paying levies to the county or applying for licenses from the devolved unit?”
Mr Nassir’s attempt comes after Mr Joho failed to implement the law that would require each ship to pay for inspection dep, inspection fee and mandatory spraying of the vessels against diseases.
Permit and import clearance fees
If Mr Nassir succeeds to use his predecessor’s law, ships calling at the port would pay Sh1,800 per tonne of exports and imports.
Each ship would also pay Sh5,600 for inspection, the same amount per square metre for compulsory spraying against disease and Sh3,600 per container for verification.
The permit and import clearance fees alone could earn the county more than Sh60 billion based on the more than 34 million tonnes that went through the port in 2021.
During Mr Joho’s administration, the national government opposed the proposed levies, saying the port is a national asset and, therefore, any legislation by a county or any other body that contravenes this constitutional provision is null and void.
But the county government argued that it is the same constitution that gives local governments powers to charge levies on any property or asset within its territory.
During the official opening of the Mombasa International Show, Mr Nassir asked Deputy President Rigathi Gachagua, who chairs the Intergovernmental Budget and Economic Council, to ensure Mombasa benefits from the port. He lauded the government for reverting port operations to Mombasa.
Mr Nassir also called for an open skies policy to boost tourism.
“Tourism gives us 4 per cent of the county’s revenue. We are suffering in terms of low tourism numbers due to the lack of an open skies policy. We must allow international airlines to land directly in Mombasa. Zanzibar is thriving because they have allowed airlines to land directly,” he said. BY DAILY NATION