In the car import business, time is money. Literally. For every day your car sits at the port after the deadline, you are fined in US Dollars.

This fine is called Demurrage (or Port Storage). It is the "Lazy Tax." If you are slow to pay your taxes or slow to lodge your documents, the port will charge you penalties that can easily wipe out your entire profit margin.

At Mombasa Port, the clock starts ticking the moment the ship docks. You generally have a 4-Day Free Period to clear the car. This guide teaches you the "Sprint Strategy" to exit the gate before the fines begin.

1. The Two Types of Penalties

Dealers often confuse "Demurrage" and "Storage." You need to avoid both.

1. Port Storage (KPA/CFS)

Charged By: The Port (KPA) or the CFS.

Trigger: If the car sits in the yard past the Free Period (usually 4-5 days).

Cost: Approx $25 - $30 per day initially, escalating rapidly if you delay further.

2. Demurrage (Shipping Line)

Charged By: The Shipping Line (e.g., MOL, Hoegh).

Trigger: If you take too long to return the container (for containerized cars) or release the unit.

Cost: Approx $26 - $50 per day.

2. The "4-Day Sprint" Schedule

To pay Zero Penalties, you must follow this strict timeline. You cannot wait for the car to arrive to start working.

Day Status Action Required
Day 0 Vessel Docks Agent receives Manifest. Lodge Customs Entry NOW. Do not wait for discharge.
Day 1 Discharge Car is offloaded. Pay Taxes immediately (KRA takes 24hrs to reflect payment).
Day 2 CFS Transfer Car moves to CFS. Book Physical Verification.
Day 3 Verification KRA inspects chassis/engine. Release Order (R/O) Issued.
Day 4 Gate Pass EXIT GATE. (Safe! No Penalties).
Day 5+ Penalty Zone You are now losing Ksh 3,000+ per day in storage fees.

3. The Secret: "Pre-Lodging"

Amateurs wait for the ship to arrive before they calculate taxes. Professionals Pre-Lodge.

  • The Trick: You can lodge the customs entry (IDF) and prepare the tax slip days before the ship arrives.
  • The Benefit: As soon as the ship docks (Day 0), you already have your payment slip ready. You beat the queue of 500 other dealers who are just starting their paperwork.

Summary

  • You have 4 Days Free at the port for domestic imports.
  • Storage charges start at approx $30/day and go up.
  • The Strategy: Pre-Lodge your entry and pay taxes on Day 1. Never wait for Day 4 to start the process.