An image shows a tugboat guiding a cargo ship to its docking point at Mombasa Port. PHOTO/FILE. Written by ANDREW MWANGURA. [email protected]. Despite its strategic advantages and critical access to major international shipping lanes, Kenya’s maritime potential is significantly underutilized. In 2020, only 3 merchant vessels were registered under the Kenyan flag, out of a total of 1,849 ship visits to its ports, indicating a missed opportunity for economic development and regional maritime leadership. At present, approximately 28 merchant ships owned by companies in Mombasa are registered under foreign flags of convenience, along with 11 bulk carriers also flagged overseas. This prevalent practice leads to considerable financial losses for Kenya, resulting in an estimated annual deficit of Sh 1.2 billion from tonnage fees alone. If these fees are kept, they could be used to enhance the nation’s maritime infrastructure, educate its workforce, and strengthen its global reputation. This situation underscores a significant challenge: the absence of a competitive domestic registry that draws vessel owners to register with the Kenyan flag. Although global open registries like Panama, Liberia, and the Marshall Islands lead the market, Kenya is still positioned on the outskirts of this profitable industry. The global merchant fleet includes more than 100,000 ships, boasting a combined deadweight tonnage of over 2.1 billion tonnes. Kenya’s lack of participation in this network results in missed chances for economic development and regulatory power. Additionally, niche areas within the maritime sector offer distinct growth prospects such as offshore oil and gas operations, offshore supply vessels (OSVs), and the cruise industry. With increasing offshore energy exploration in East Africa, Kenya could emerge as a desirable registry for Floating Production Storage and Offloading (FPSO) units, of which there are roughly 175 globally. Likewise, the worldwide OSV fleet, crucial for offshore energy production, consists of more than 3,000 vessels. Creating a competitive registry for these specialized sectors would enable Kenya to become a maritime center in the region, offering economic advantages and job prospects. Although the cruise industry has faced challenges recently, it is still growing on a global scale. With around 270 ocean-going ships, this industry has the potential to gain from a Kenyan registry that provides competitive pricing along with a solid commitment to safety and sustainability. Establishing an International Open Ship Registry (IOSR) would represent a significant change in Kenya’s maritime regulations.
