Nairobi, Kenya – Kenyan importers have breathed a sigh of relief as the country has implemented a new cashless system for import containers at the Port of Mombasa. This groundbreaking move aims to streamline the import process, reduce costs, and enhance trade efficiency.
Under the new system, importers will no longer be required to pay upfront charges for container guarantees. Instead, they can settle any charges on damaged containers upon returning them to the shipping line. This eliminates the need for importers to deposit significant sums of money before taking possession of their goods, thereby reducing their financial burdens.
Several major shipping lines, including CMA CGM and MSC/Ocean Freight, have signed a memorandum of understanding with Viaservice Company to facilitate this new system. Viaservice will provide guarantees to shipping lines and agents on behalf of importers, allowing them to clear their goods without paying upfront charges.
This innovative approach is similar to a successful model already implemented in Tanzania. By eliminating cash deposits, the new system is expected to significantly reduce the cost of doing business and improve the overall efficiency of the import process in Kenya.
Morgan Lépinoy, the Global head of trade facilitation at Viatrans, the parent company of Viaservice, emphasized the potential benefits of this new system. “It makes the whole process more efficient and is powered by a digital platform,” he said. “It addresses the challenges of container deposits, one of emerging markets’ major trade barriers which consumes enormous working capital.”
The introduction of the cashless system is expected to have a positive impact on both importers and exporters in Kenya. Importers will benefit from reduced costs and improved cash flow, while exporters will see increased efficiency and competitiveness.
The Intergovernmental Standing Committee on Shipping (ISCOS) has also expressed support for the new system, advocating for the elimination of cash deposits as a container guarantee. Daniel Kiange, the ISCOS Secretary General, stated, “We have suggested doing away with cash deposits and moving to the use of other forms of guarantees.”
Elias Baluku, an official at the Federation of East African Freight Forwarders Associations, highlighted the potential benefits of using technology to manage the container guarantee cycle. “Use of technology has reduced human intervention thus saving time while increasing transparency and accountability of transport logistics services,” he said.
