The Port of Mombasa is the primary trade gateway for eight countries in East and Central Africa, handling critical imports, exports, and intra-regional transfers. In the context of the Single Customs Territory, efficient cargo clearance is essential to maintain free circulation of goods and reduce non-tariff barriers.
In July 2023, the port authority terminated its credit customer policy, requiring instant payment before cargo delivery. This shift exposed significant operational challenges. Bank operating hours conflicted with the need for 24/7 clearance, forcing customers to deposit advances manually. The lack of an automated system slowed processes, crowded administrative offices, and denied customers access to self-service facilities. These delays threatened regional trade flows and port productivity.
To solve this, the port authority collaborated with Stanbic Bank to introduce Kargo Pay, a digital payment solution tailored to the port environment. Kargo Pay enables customers to load funds onto an electronic wallet anytime, day or night, without transaction limits. It integrates multiple payment channels, including inter-bank transfers outside official hours, real-time gross settlement, debit and credit cards, and regional mobile money including Mpesa.
The system has delivered measurable improvements. It has streamlineed the management of customer deposits, extends consignment information directly to consignees, and provides a single digital point of information for revenue authorities and other government agencies. This integration reduces manual interventions and accelerates the clearance cycle. Customers now access authentic invoices and settle charges instantly, without visiting bank counters or credit control offices. Regional customers can also pay in their local currencies, supporting a cashless, inclusive economy.
By digitizing the payment process, Kargo Pay has restored self-service capabilities and eliminated bottlenecks that previously slowed cargo release. The system operates continuously, ensuring that the port remains productive around the clock. It has strengthened coordination among shipping lines, clearing agents, container freight stations, and trucking companies, while supporting compliance with regional revenue collection requirements. Kargo pay has also enhanced the profitability of KPA by increasing revenues ensuring that port dues are collected in record time.
Kargo Pay demonstrates that targeted digital innovation in financial transactions can directly enhance port efficiency and regional trade facilitation. It offers a replicable model for other ports seeking to modernize their payment ecosystems, reduce delays, and improve stakeholder satisfaction. The solution contributes to sustainable port operations by lowering administrative costs, reducing paper-based processes, and supporting seamless cross-border movement of goods. This initiative reflects a commitment to practical, scalable digitalization that strengthens the port’s role as a reliable hub for regional and international trade