Business community applaud top leadership changes at Mombasa's KPA

The vice chairman of Uganda Shippers Council Kassim Omar believes the recent shake up of top management at Mombasa port will serve Ugandan business community better.

Senior Kenya Ports Authority (KPA) and Kenya Revenue Authority (KRA) in Mombasa were reshuffled in a major purge announced on Tuesday (February 9, 2015) by the Kenyan government. Among the eight officials sent packing were KPA managing director Gichiri Ndua.

Others were the general manager for operations Twalib Khamisi, general manager for board and legal services Muthoni Gatere, general manager for corporate services Justus Nyarandi and head of security Mohamed Morowa.

Now Omar asserts there existed a cartel that have been frustrating the Ugandan business community, collude in theft while delaying cargo moving.

"Traders get frustrated to the extent that they abandon their goods and these guys auction them, the changes are good and we hope there can be more action (because Uganda is their biggest partner in the port use)," noted Omar while speaking on the sidelines of the 4th Marine Insurance workshop organized by Ugandan Shippers Council (USC) at Metropole hotel recently.

Omar also asked Ugandan government to stand up to the chaos and defend Ugandan traders.

On insurance, Omar asked traders to take the service seriously because it is the only way of transferring risks.

"We are actual donors, we call ministers to receive $20m donor money yet we have all this more money trickling out of our country," noted Omar.

It is estimated that $90m is paid by Ugandan companies in premium to foreign insurance companies annually.

Amos Kankunda, the secretary general of USC advised traders to walk the talk if they want to see the benefits of insurance.

"The fact that your cargo has never disappeared in water or been stolen does not mean the risk is not there," noted Kankunda. Kankunda asked insurance companies to make good and affordable packages that will convince the business community to use local firms instead of foreign ones

Insurance according to experts is a lubricant which provides a cushion for businesses on both sides when there are risks in transit cargo.

In a presentation on marine insurance, Nasser Matovu from Corporative Insurance Company Uganda urged Ugandan traders to purchase their insurance policies from Uganda because it will help increase local insurance penetration. He said there are more intricacies in getting claims from foreign firms than when local insurance firms are used. Currently penetration is at less than 1% which means the contribution of insurance as a percentage of the total economic output is still very minimal.

He listed the several dangers that face marine traders among them handling damage, weather changes like floods and non- delivery.

Nasser called for legislation that ensures that premiums are taken from Uganda. George Okotha, director of operations at Insurance Regulatory Authority advised traders to analyze the frequency and severity of every risk before making a decision to take an insurance package.