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Kenya Ports Authority (KPA) is inching closer to sealing concession deals following the conclusion of a pre-bid conference on its assets.

The conference, which attracted participants both physically and virtually, provided a platform for potential investors to engage directly with the government and KPA officials and gather essential information about the whole process.

A total of 63 people representing various potential investors attended the conference, (21 in-person and 42 online via TEAMS).

This conference came at the height of heated clamours rocking the port city of Mombasa over alleged plans to privatise sections of Mombasa and Lamu ports, the pre-bid conference offered the interested investors an opportunity to probe and seek clarity on various aspects of the project.

The “Port Privatisation” has remained a heated topic in the Coast region since KPA published a tender to invite bidders for the development and operation of port assets through Public Private Partnership (PPP) for Lamu container Terminal Berth 1-3, Lamu Special Economic Zone, Mombasa port’s berth 11 to 14 and Mombasa Container Terminal one early September.

Various sections of the local leadership led by Governor Abdulswamad Nassir have read bad faith in the move to invite more private companies at the port amidst fears of mass job losses and to the detriment of local communities. Azimio leader Raila Odinga on his part has been on record condemning the intended “Privatisation of the Port of Mombasa” terming it as a mystery.

According to Raila, the decision was made without public participation and the involvement of the County Government of Mombasa.

“One would ask, why is the process shrouded in secrecy? What is the economic value of the privatisation to Kenyans, the people of Mombasa County and the Coast region as a whole?” he posed in Mombasa.
The debate has refused to go away despite repeated attempts by various quarters of the government and the authority itself to refute the “privatisation” claims by trying to explain the process using “concession” as more polite jargon or euphemism.

But in his address to the participants, KPA Managing Director, William Ruto, was confident that “concessioning of port assets will attract private sector investment.”

Ruto told the investors that the primary objective of partnership with the private sector is to enhance the efficiency and effectiveness of ports, improve their capacity and competitiveness regionally and globally. “The concessioning of port assets represents a strategic move by the KPA to attract private sector investment, encourage technological advancements, and improve overall service delivery,” he told the conference participants.

He assured them that the process will be conducted with utmost transparency, fairness and adherence to the highest standards of governance.

“The pre-bid conference marks the beginning of a comprehensive and transparent bidding process, which will ultimately provide interested and qualified investors with an opportunity to submit their proposals,” Ruto explained.

Kenya Ports Authority will evaluate the bids based on predetermined criteria, including technical expertise, financial capability, and sustainability plans. The successful bidders will then enter into concession agreements with the KPA, outlining their responsibilities, obligations, and the expected outcomes.