info.afrindex.com
China-Africa Trade Information Service
Our blue economy is in tatters because we lack investors who could help develop a shipping line for commercial services. The losses incurred because of absence of investment in shipping are enormous,” said Ms Karigithu in an interview. On top of the transport costs, Karigithu explained, the country last year suffered $22.6 million (Sh2.3 billion) in demurrage costs on oil imports.
Demurrage is the charge payable to the owner of a chartered ship in respect of failure to load or discharge the ship within the agreed time. The losses come as Kenya’s peers in the region continue to make admirable investments in shipping and are making extra cash by hiring out their fleet. Ethiopia Shipping Line (ESL), for instance, is earning the country $40 million (Sh4 billion) annually from its fleet of 18 commercial ships. “Seychelles through the Seychelles Petroleum Company (SEYPEC) also imports all its petroleum products aboard its own ships,” noted Ms Karigithu. The PS said the reason there is little investment in shipping in Kenya is because the country lacks a robust legal framework and maritime law enforcement capability to govern the sector. “I am sure many investors own ships, but register them in foreign countries. This is because the maritime sector in other countries is much more developed and properly governed than here,” she said.