We are not privatizing ports, says KPA Board Chair

Sep 23, 2023 - 16:33

(L-R) KRA Chairman Anthony Mwaura, KPA Chairman Benjamin Tayari (C) and KPA Managing Director (MD) Capt. William Ruto addressing the press after a joint meeting between KRA and KPA boards. (Photo by Cyzick Sidayi).

Mombasa,

Saturday September 23, 2023

KNA by Sadik Hassan

The Kenya Ports Authority (KPA) Board of Directors Chairman Benjamin Tayari has allayed fears that the Ports of Mombasa and Lamu will be privatized.

The move followed alleged misinformation by a section of the media and Coast leaders that KPA is mulling privatization of the port.

The KPA Chairman however said they have been reading newspapers on the purported port privatization and that “some of the stories which are coming out are not true.”

“KPA is not doing privatization; what we are doing is a concession. There is a big difference between privatization and concession,” he said during a joint meeting between KPA and KRA boards at the Port of Mombasa.

He explained that privatization means that they are giving away the port to be run wholly by a private investor.

“What we are doing is that we are leasing out some of our assets to private investors to be able to bring more business to the port and generate more revenue to the country,” he said.

He added that the port is already making concessions in berth number four and number seven respectively where Grain Bulk Handlers Limited (GBHL) and Portside are working.

The operations, Tayari said can be undertaken by KPA but the need to create more job opportunities and revenue necessitated the move to call for bidders.

“It’s not privatization, there is nothing like that, this is totally different from the previous (regime) when they were dealing with Container Terminal Two (CT2),” clarified the KPA Chairman.

A section of Coast leaders had vented their opposition to KPA’s move to develop and operate some ports of Mombasa and Lamu assets through Public Private Partnerships (PPP).

On 6th September 2023, KPA Managing Director Capt. William Ruto invited sealed bids from eligible tenderers for the qualification of bidders for the development and operation of Port Assets through PPP.

Lamu Port Container Terminal Berth 1-3, Lamu Special Economic Zone Mombasa Port Berth 11-14 and Mombasa Container Terminal 1 are earmarked to be developed and operated through PPP.

Courtesy; KNA