Kenya Airports Authority made a presentation to cargo stakeholders on ‘New Method of Charging Cargo Concession’ on 18th October 2011 at Simba Restaurant, JKIA, Nairobi. Alice Mbugua, the KAA Marketing and Business Development General Manager said the new rate will be based on weight at Kshs 0.50 per kilogram (kg) with a minimum charge of Kshs 250 per Airway bill/Consignment. The review will help to streamline charging system to be in line with other international Airports.
KAA also collected views from stakeholders on the new rate of kshs 0.50 /kg. most expressed fears of the costs of doing business going up. The date of implementation will be communicated once the process is finished. Kenya Flower Council attended the forum.
Mode of charging cargo concession
What is concession?
Right granted by the principal in a contract to sell goods or services in a particular territory for which the other party or Agent pays a fee to the principal
Cargo concession
It is also referred to as Cargo uplift fees. It is a charge levied by the Authority on all cargo passing through the Airport
Historical origins
Under the handling category in Concession Order 189 of 1996, cargo concession was established as a fee chargeable to clearing and forwarding Agents at 6% of their annual Gross turnover with a Minimum Guarantee of Kshs150, 000 per annum for operating at the Airports. It was later negotiated and fixed at Kshs.200 per Airways Bill/Customs Entry.
Subsequently, it was revised to Kshs.250 per Airway Bill/Entry payable by importers and exporters. The charge is supported by ICAO Document 9562 (Airport Economics Manual 2nd Edition 2006 ) and Airports
Council International Guidelines.