High Court Backs Maritime Regulatory Reforms

The High Court in Mombasa has dismissed a petition challenging the legality of key Merchant Shipping Regulations and a related Tariff Framework Guideline, introduced in 2024. This ruling marks a significant victory for the Kenya Maritime Authority (KMA) and the Cabinet Secretary for Mining, Blue Economy and Maritime Affairs, Hassan Joho, enabling the overhaul of maritime operations in Kenya.

Justice Olga Sewe, in her decision delivered on September 19, 2025, upheld the regulations, stating that the Cabinet Secretary and KMA acted within their legal mandate and complied with constitutional and statutory requirements. The case, filed by the Kenya Ships Agents Association (KSAA), sought to invalidate Legal Notice numbers 90, 91, 92, and 94 of 2024. These notices cover crucial areas such as maritime labour, collision prevention, transport operators, load lines, tonnage measurement, and recognised organisations.

Context of the Regulatory Changes

The KSAA had argued that there was inadequate public participation in the formulation of the new rules and that they imposed unfair financial and operational burdens on stakeholders. Additionally, the association contended that KMA's Tariff Framework Guideline constituted a statutory instrument requiring approval under the Statutory Instruments Act.

However, Justice Sewe ruled that the tariff framework was an administrative guideline, not a statutory instrument, designed to assist Maritime Transport Operators in reviewing and filing tariffs under the Merchant Shipping (Maritime Transport Operators) Regulations, 2024. She further noted that the regulatory process was transparent and participatory, with KSAA itself having been invited to public participation workshops and its feedback published on KMA's website.

This court decision follows a period of significant discussion and some reversals regarding maritime regulations. In November 2024, the Kenyan government, through Prime Cabinet Secretary Musalia Mudavadi, rescinded earlier stringent regulations that limited foreign ownership in maritime transport and imposed restrictions on foreign employees. These earlier regulations, the Merchant Shipping (Maritime Transport Operators) Regulations, 2024, had faced widespread outcry from industry stakeholders who warned they could discourage foreign investment and harm Kenya's economy. The government at the time reassured the maritime industry that all operators, local and foreign, would receive licenses for 2025 under previous regulatory criteria.

Law and Policy Framework

Kenya's maritime law is primarily based on the Merchant Shipping Act, 2009, which provides the legal framework for the registration, operation, and regulation of ships in Kenyan waters. The Kenya Maritime Authority (KMA), established in 2004 and legally constituted in 2006, is mandated to regulate, coordinate, and oversee maritime affairs in Kenya. Its functions include coordinating search and rescue efforts, maintaining a ships register, and conducting inspections to ensure maritime safety and prevent pollution.

The current regulations are part of a broader effort to enhance Kenya's blue economy, which holds significant potential for economic growth and job creation. The blue economy encompasses sectors such as fisheries, maritime transport, tourism, and renewable energy. Kenya's strategic location on the Indian Ocean, one of the world's busiest shipping lanes, underscores the importance of robust maritime governance for national growth and regional integration.

Stakeholder Perspectives

Analysts suggest that the court's decision will influence public debate and policy execution. Stakeholders are now urging clarity on timelines, costs, and safeguards associated with the implementation of the new regulations. Key stakeholders in Kenya's maritime sector include government ministries, departments, and agencies (MDAs), private sector entities, international organisations, and community-based organisations. These groups have diverse interests, ranging from policy formulation and investment to environmental sustainability and community welfare.

The KMA believes this ruling empowers it to enforce regulations aimed at raising safety and labour standards, ensuring fair competition, reducing the cost of doing business, and promoting investment in Kenya's maritime and logistics sectors.

Risks and Implications

The maritime sector is crucial for Kenya's economy, handling 90 percent of the country's international trade by volume. Effective maritime governance is essential to mitigate threats such as piracy, smuggling, and illegal fishing, which have historically affected the Kenyan coastline. Challenges also include marine pollution and over-exploitation of resources.

The implementation of comprehensive maritime security frameworks is vital to safeguard trade routes and protect the marine environment. The government's commitment to the blue economy and its bid for re-election to the International Maritime Organization (IMO) Council under Category “C” highlight its dedication to shaping global maritime policy and securing its maritime interests.

What to Watch

Attention will now turn to the practical implementation of the upheld regulations. Stakeholders will be closely monitoring the KMA's approach to enforcement, particularly regarding the timelines for compliance and any associated costs. The impact on foreign investment and the overall competitiveness of Mombasa Port, a critical hub for East Africa, will also be key areas to observe. Further engagement between the KMA and industry players will be essential to ensure a smooth transition and foster a stable regulatory environment.