by Willis Oketch

A freeze on unnecessary expenditure by the new management at the Kenya Ports Authority (KPA) has roped in huge profits, netting a record Sh5.3 billion up from Sh1.4 billion in 2007/2008 financial year.

The Managing Director James Mulewa said that they stopped spending money on non-essential projects and cancelled contracts that were being used to spirit away money from the corporation.

"We spent only what was necessary to drive our business in key areas such as operation and human resources," said Mulewa.

The new team headed by board chairman Shukri Baramadi, it would seem, has found a working formula to turn around the organisation’s financial fortunes.

Baramadi, a former director of National Security Intelligence Service Training School replaced Gen. Joseph Kibwana while Mulewa replaced Abdalla Mwaruwa last year.

Mulewa said the company froze the hiring of non-core personnel and cancelled contract whose wage bill was eating into what could be used to develop the port’s infrastructure.

"We were overstaffed and people are not retiring because of the increase in retirement age," he said. The MD added that the computerisation in the port had also contributed to high revenue collections.

"Due to computerisation, we monitored all employees and limited avenues through which shady deals would thrive," Mulewa said. He also attributed the growing revenues to discipline among employees.

Over this period, KPA has undertaken several changes including introducing the 24-hour working schedule. Besides, Sh6 billion has been allocated to capital expenditure to improve infrastructure and equipment in the port.

Expenditure in the past financial year went up from Sh12.437 billion to Sh13. 228 billion as a result of the 40 per cent pay raise for employees that were agreed last year.

It is estimated that the volume of cargo at the port will increase to 19.7 million tonnes by 2012 up from 16.2 million tonnes today.

As part of its expansion programme, KPA plans to buy key equipment this year including ten reach-tackers, ten rubber tyre gantry cranes, two shore gantry cranes, ten terminal tractors, one pilot boat, one mooring boat, one mobile harbour crane and five forklifts.