Ruto: We need a second grain handling firm

By NGUMBAO KITHI

Agriculture Minister William Ruto has asked KPA boss James Mulewa to advertise the tender for a second grain-handling firm.

The tendering process was suspended recently at the behest of Prime Minister Raila Odinga.

Mr Ruto said monopolies had no room in the modern world and a second grain-handling company should be given a chance.

The minister said grain import by next year was expected to include 50 million bags of maize.

"My aim is to make food the right of all Kenyans, not the preserve of the rich," Ruto said.

He said there was no justification for the Mombasa port to have one grain handling company when ships wanting to discharge grains waited for long, incurring huge loses.

Speaking at Tudor AIC Church in Mombasa, yesterday, Ruto said the country had to get its priorities right.

Grain Bulk Handling Limited (GBHL) has enjoyed a monopoly in handling grain imports at the port of Mombasa.

cancelled tender

KPA recently caved in to pressure and advertised a tender for a second grain-handling firm at the port, but Raila cancelled the process.

At the centre of the controversy is GBHL that handled 939,000 tonnes of grain last year that at $16 per tonne translates to $15.9 million (Sh1.2 billion).

The business at the port of Mombasa is lucrative and has been shrouded with controversies.

Experts are asking how possible it is to ensure efficiency and cost-effectiveness with only one mechanised grain handler.

Parliament has also investigated the intrigues surrounding the grain business at the port.

The Parliamentary Investment Committee visited the port last month and met KPA managers.

The parliamentary team is looking at the viability of opening up grain handling at the port to many players who could open modern handling facilities and compete with GBHL, which has operated since 2000.

Ruto also criticised concessioning of the Kenya Railways to Rift Valley Railways and called for cancellation of the agreement.

The executive chairman of RVR is Brown Ondego, who is also the Managing Director of GBHL.

He said RVR had demonstrated its inability to manage the railway and should be kicked out.

He said lack of a working railway system made it difficult for the country to fight famine because.

Ruto said the failure by RVR to clear cargo by rail from the port of Mombasa was unacceptable.

He took issue with the amount of money allocated to the Ministry of Defence for arms.

"Why should the Government allocate so much money to defence when the country is not at war and there are Kenyans who need food," he asked.

He said the country must fight unemployment and poverty.