Government cancels ground breaking event for Lamu port

Lamu, Kenya: The government has cancelled a major ground breaking function at the proposed Lamu port where President Uhuru Kenyatta and five presidents and a prime minister were to officiate on Monday.

Officials said it has been cancelled due to logistical problems but other sources cite security concerns.

Al Shabaab militants attacked Yumbis village in Southern Garissa on Thursday and the government says the militants were driven away but an Al Shabaab spokesman was quoted by foreign media claiming the terrorist group is still in charge of the village. Last evening Lamu County government confirmed that the high profile launch has been postponed.

Meanwhile, A Netherlands-based port and terminal operating company will throw its luck in a bid operate the second container terminal at the Port of Mombasa.

The company, APM Terminals BV, has been given a greenlight by the courts after it sued Kenya Ports Authority for blocking it from tendering for the lucrative project.

In the case, the company had argued that the move by the ports regulator was prompted by a piece of legislation that a company or a person owning a ship or providing the service of shipping line could not provide any other service at the port.

APM Terminals is owned by Maersk group and thus the company can be associated with shipping services.

The piece of legislation, Section 16 of the Merchants Shipping Act 2009 was however challenged in the court of Mombasa and temporarily halted.