Kenya's regional port counts losses over South Sudan crisis

Kenya's clearing and forwarding firms on Tuesday said the renewed fighting in South Sudan has affected business at the regional Mombasa-based regional port amounting to millions.

Kenya International Freight and Warehousing Association (Kifwa) said many of the transporters have lost millions of shillings since clashes between the rival leaders' forces began.

KIFWA Secretary Bernard Simiyu said many transporters have pulled out of South Sudan, noting that the furthest they can deliver cargo is Elegu town on the Uganda-South Sudan border point.

"Many clients in South Sudan cannot be reached on phone. They have gone silent since the war broke, many clearing agents are counting losses amounting to millions," Simiyu said.

The association has instructed all transporters to suspend their services until calm in Juba. "We expect to see cargo destined to South Sudan to start piling up at the port of Mombasa, since no one is ready to take up the risk," he added

Kenya's Long Distance Drivers and Allied Workers Union, Secretary General Nicholas Mbugua warned its members against transiting into South Sudan, following a spark of attacks and ongoing political unrest until calm is restored.

According to Mbugua, violence in the world's youngest nation has continued to expose its members to danger.

Reports indicate that most of the transporters are stranded along the major highways since they cannot be allowed to deliver cargo in Juba because of the fighting.

Kenya Ports Authority said they expect cargo destined for Juba to be affected if the violence continues to rock that youngest East African nation.

KPA head of Corporate Communications Bernard Osero said they are still assessing the impact of the war on cargo off take at the port. The clashes came at a time when South Sudan was marking its fifth year since independence.

KPA said a total of 702,531 tonnes passed through the port of Mombasa were destined for South Sudan

Uganda remains the second biggest user of the port with an 11 per cent share, with its share in transit cargo 8.2 per cent year-on-year, rising to 5.9 million tonnes from 5.5 million tonnes in 2014.

According to KPA records, South Sudan cargo through the Port of Mombasa dropped 7.7 per cent last year compared to 2014.

Kenya Airways and Kenya Commercial Bank (KCB) Group were among Kenyan companies that are counting heavy losses following a fresh outbreak of political violence in Juba.

KCB, which has branches in all the 10 South Sudanese states, said it had scaled down operations in view of the deteriorating security situation in the country.

"We have reviewed and scaled down branch operations in the country until the situation improves in the affected areas. We apologise to our esteemed customers affected by the disruption of services," the bank's chief operating officer, Samuel Makome, said.

"We stand with the people of South Sudan during these difficult times and we look forward to a quick return to normalcy," he added.

Kenya Airways said it would indefinitely extend its suspension of flights to Juba, citing safety concerns.

"We advise that our flights to and from Juba remain suspended following unrest in the South Sudan capital," the airline said.

Kenya Airways, which operates 14 flights a week to Juba, had announced the suspension of flights citing "an uncertain security situation." It however said on Monday it would be monitoring the situation.

Kenya's small scale traders lobby said many Kenyan businesses in South Sudan were suffering major disruptions and workers were leaving in large numbers. Endit