Coast leaders are misleading public on port privatisation
SEE ALSO :KPA to give discounts at Lamu portThe ignorant public would take MPs and a section of local trade unionists for their words, especially because they make privatisation sound like a very new thing yet those in the know will tell you that privatisation of certain functions of the port remains a common thing. Now here is the truth. First, the KNSL is a State corporation, owned by the Kenya Ports Authority in partnership with investors. It was started in 1987 as a joint venture between KPA 74.8 (per cent), DEG 12.6 (per cent) and UNIMAR 12.6 (per cent). In 1997, the three shareholders, through a competitive process, invited the Mediterranean Shipping Company (MSC) as a strategic partner. Presently, the shareholding structure is as follows: KPA (53 per cent), UNIMAR seven per cent, DEG seven per cent and MSC, through its 100 per cent owned subsidiary, seven per cent. KNSL is a State Corporation and will remain so. Secondly, there is no privatisation or selling of the Port. This is a Government to Government arrangement and does not involve the whole port but two Berths (20 and 21). KPA cannot sell to itself. Third, what is envisaged are lease arrangements, where KNSL will pay a lease fee to KPA, pay for the JICA loan used to build the Berths and share gross revenue between KPA and the KNSL, and residual profits with the MSC subsidiary, as per their share ownership.
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