The East African Standard (Nairobi)

Kenya: Counting Losses

Beauttah Omanga

4 October 2007


Nairobi — Trade across Lake Victoria is now in favour of Tanzania weighed down by the grounding of MV Uhuru a year ago and the resurgence of the water hyacinth at the Winam gulf.

Stakeholders fear the country has lost millions of shillings resulting in a major economic crunch that threatens Kisumu port livelihood.

Outgoing Kisumu Port manager, Mr Edward Talam, says the country used to rake in Sh17million a month, when MV Uhuru, formerly owned by the Kenya Railways Corporation (KRC), was the dominant force in the lake waters.

"Before its services were suspended, the vessel was a key contributor to the country's economy. We have lost revenue to the tune of Sh204 million in the last one year after the ship stalled," reckons Talam who resigned a week ago.

Talking to Transport in Kisumu,, Talam regrets that Kenyan products that used to be ferried to Ugandan and Tanzanian, notably cement, salt and other general goods have since been affected by the transport hitch.

It remains unclear on why the vessel was grounded adding the long wait has sparked worries that the ship might not return to the Lake Victoria waters .

Immediately the Rift Valley Railways took over its management, the vessel was stopped from operating as the new investor was asked to first insure the ship.

"The RVR was asked to negotiate with a new insurance company and negotiations are still on," explained Captain Elijah Agak.

Captain Agak explained that RVR was yet to approach an insurance firm as repairs were still being carried out.

"We are carrying out minor repairs on the vessel. After which a marine surveyor will be sent to assess the vessel before any kind of insurance deal is enterted into," explained Captain Agak.

When Transport team toured the dock, employees were busy repainting the ship. "We have done almost half of the repairs but we can't tell how long it will take," said Agak.

Sources at the port say materials for repair work are acquired from Nairobi. It is expected that once ready for inspection, RVR will redefine its operations.

MV Uhuru used to ferry huge consignments to Mwanza in Tanzania, but that could change depending on what our employer decides," Agak says. Traders are now pleading with the Government to intervene for faster repair and insurance procedure so that services can resume.

"We have been abandoned by the Transport ministry. The grounding of the vessel has virtually thrown us out of business," explained Jared Omondi, a businessman in Kisumu. Omondi said he used to ferry building equipment like iron sheets and cement to Mwanza but closed shop immediately the ship suspended operations.

Another trader who has continued with his business said she had opted to carry on despite the slow pace and high costs charged by M Umoja, a vessel operated by a Tanzanian marine company.

"We are relying on the Tanzanian ship to carry on with our business. But it can only make two trips a month," says Brenda Adhiambo.

Agak says before it suspended its services, MV Uhuru used to make between four to five trips a month to Tanzanian ports.

"Our customers are complaining a lot that the move has locked them out of business but they have to wait a little longer as we work on the ship," he assured. The year-long suspension of MV Uhuru's operations also saw scores of employees lose their jobs.

"Some of the employees were retrenched and only 14 of us retained," said Agak. Depending on what kind of services the vessel will render once active, 14 seafarers won't manage," he explained.

Equally hit by the suspension is transport business between the Port of Kisumu and Uganda. "Ferrying cargo to Uganda, which is also served by the RVR, has adversely been affected," Talam observes.

Transportation of cargo crisis deepened when the Ugandan vessel christened MV Kabarega sunk a few years ago. Months later the Ugandan authorities then suspended two ships - MV Kahawa and MV Pamba - for what sources termed as "incompetence".

Also locked out of business following the sus-Kenya losses millions in Lake trade MV Uhuru docks at the Kisumu port.

Job losses

The grounding of the vessel has impacted negatively on Kenya's trade with the East African neighbours.  "All the employees who used to off load cargo at the depot were asked to leave and are now jobless," said Talam.

The manager says Tanzanian businessmen are now making a kill out of the long absence of competitors for the lake transport.

"They buy goods from Kenya at cheap prices but sell double the price to DR Congo and Zaire," said Talam.

However, the suspension came as a blessing in disguise to the ship workers. The emergence of the hyacinth on Lake Victoria has been a scare to all users including fishermen. Captain Agak says vessels plying Lake Victoria find it rough wading through the weed to dock.

"The propellers fail to work as they are slowed down by the weed," he said. Fishermen using boats say they take risks to go fishing.

"We are not sure of making it back safely due to the unpredictable weed. It covers shallow and rocky parts confusing our judgement of the dangerous spots," says John Omondi, a fisherman operating from Dunga Beach.

Two months ago, the weed engulfed a group of fishermen and traders who were crossing the lake to Homabay harbour. The group spent several nights marooned in the lake. The Government intervened by sending two helicopters that rescued the already exhausted group.

Despite disclosure by the National Environmental Management Authority (NEMA) that the three East African countries are committed to finding a permanent solution to controlling the weeds investors can only count losses, at least for now.

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