The history of Kenya’s CFSs

By EUGENE OMILO

According to the chairman of the CFS Association Mr. Meshack Kipturgo, the concept of CFS’s itself is not new since many countries around the world have such facilities to help ease congestion at the receiving port.

In Kenya, he says, the continued pile up of cargo towards the late 1990s especially after the El Nino rains that destroyed the road network lent credence to the use of CFSs to not only ease congestion but also to contribute to quick clearance of cargo.

“The first CFSs became operational in the year 2002 with the permission of KRA after the fulfillment of set requirements,” he says.

“This was followed soon after by other pioneer CFS’s but due to continued cargo volume, the number has grown and now stands at 14 CFSs under the CFS Association,” explains Mr. Kipturgo adding that it is after this development that there arose a need to have an association to guide the operation of the facilities. 

He says the association provides a common platform for members to share their views as well as a front with which to bring up pertinent issues of concern.

Mr. Kipturgo who is also the Managing Director of logistics giant Siginon Group says the CFSs now play a very significant role not only in cargo clearance but also in the overall economy of the country including the creation of employment and collection of revenues for the government.

Ordinarily, importers are allowed four free days within which to move their cargo but due to the nature of the logistics chain, this is mostly not possible hence the need for them to make special arrangements with the CFS’s for continued storage until when they are ready to move the cargo.

This function, Mr. Kipturgo says, is very unique to CFSs and even after the completion of the second container terminal at the port or the second port in Lamu, the role and importance of the CFSs will not wane. 

KMA’s Mrs. Nancy Karigithu also agrees that though the increased space available in the port may limit the usage of the CFSs if the current limited scope of their function is sustained, the broader role of a typical CFS will still be needed.

“They should be very useful in handling goods for home use, warehousing, re-export, temporary storage for onward transit or outright export and in some instances even transshipment traffic,” she explains adding that this may however require a review of customs procedures and risk management regime to improve flexibility of CFS services.

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