Dar Ports Become Bargaining Chip Against Mombasa for EA Traders

Why It Matters

Diversifying routes reduces Kenya’s port monopoly, reshapes regional logistics, and creates new revenue streams for Tanzania’s Central Corridor.

Key Takeaways

• South Sudan designates Dar es Salaam, Tanga as primary ports.
• Mombasa congestion causes 20-ship backlog, higher fees.
• Tanzania offers lower tariffs, longer free storage.
• Bilateral trade grew $10.1 M in 2024, 37.7% YoY.
• Kenya faces $5,000 security levy per container.

Pulse Analysis

The East African trade landscape has long been dominated by Kenya’s Northern Corridor, with the Port of Mombasa serving as the gateway for landlocked neighbours such as South Sudan, Uganda and Rwanda. Recent congestion at Mombasa—backlogs of more than twenty vessels and chronic delays in tea, coffee and container clearance—has exposed the fragility of a single‑port dependency. Meanwhile, Tanzania’s Central Corridor, anchored by Dar es Salaam and the emerging Tanga hub, has invested in longer free‑storage periods and streamlined customs, positioning itself as a viable alternative for regional shippers.

In December 2025 South Sudan signed a joint communiqué with Tanzania’s revenue authority, securing dedicated terminals and a cross‑border digital trade‑facilitation system. The move cuts reliance on the Northern Corridor, lowers freight costs, and curbs tax evasion through real‑time data sharing. Early results show bilateral trade climbing to $10.1 million in 2024, a 37.7 percent year‑on‑year rise, while South Sudan’s exports to Tanzania surged 948 percent over five years. Lower tariffs and incentives at Dar es Salaam and Tanga are now outweighing the distance disadvantage.

The shift threatens Kenya’s port revenue and could accelerate infrastructure upgrades across both corridors. Kenya’s recent $5,000 security levy per container destined for Juba has drawn criticism and may further erode its competitive edge. Tanzanian authorities, by offering integrated digital platforms and more predictable clearance times, are leveraging the dispute to attract new cargo streams, including oil pipeline and railway projects linking Uganda and Tanzania. Investors will watch how the rivalry reshapes logistics contracts, dry‑port development in Naivasha, and the broader push for multimodal resilience in East Africa.