Lobby want Swiss firm deal halted
By John Otini, June 17, 2022The High Court in Mombasa is expected to give direction in a multi-billion deal giving a Swiss shipping firm rights to run a Sh32 billion container terminal at the port of Mombasa.
Human rights group Haki Africa also wants anti-corruption authorities to probe what they call the intended “privatisation of berth two of the Mombasa port”.
The rights group says it is an illegality for the government to offer Mediterranean Shipping Company (MSC), which is a private entity, the rights to run Container Terminal 2 (CT2) at the port of Mombasa.
Through its legal director Yusuf Abubakar, the lobby says an August 2018 agreement was illegal given that the port is a national utility.
Blue economy
“The Ethics and Anti-Corruption Commission (EACC) should open a probe against the ministry of Transport,” said Haki Africa director Huseein Khalid, adding that they need to find out who was involved in giving the contract to private companies.
The port of Mombasa is among the biggest in East Africa and harbours other multi-billion shilling projects that seek to reinforce the blue economy including the Sh40 billion Kipevu Oil Terminal and Sh1 billion Cruise Ship Terminal. The authority has also constructed a Sh2 billion six-lane concrete Kipevu road to facilitate the speedy evacuation of sea cargo from the port facility.
Last week, the Common Market for Eastern and Southern Africa (Comesa) warned against a joint application by KPA and MSC for equal control rights of the Sh32 billion Mombasa Port CT2.
Through the Comesa Competition Commission, the regional trade authority said the joint venture would create an unfair playing in the shipping sector.
KPA settled on the Swiss firm to run Mombasa port’s Container Terminal 2 and fulfil what is reportedly a loan facility deal for the construction of the largest cargo handling facility.
MSC is the second-largest shipping line globally after Maersk and is meant to leverage its capacity to aid in running the facility through the Kenya National Shipping Line (KNSL).