Coast MPs protest plans to privatize Mombasa Port

Business

By PETER OPIYO

MPs from the coast region are opposed to the privatization of the Mombasa Port

The MPs said the government has absolutely no reason to call for the privatization of the facility, pointing out it is not a liability to the taxpayer.

While addressing the media at parliament buildings the MPs argued some powerful government officials have also infiltrated the process thereby raising questions about the intention to privatise it.

"We know powerful figures in government and their associates have schemed to grab this vital resource in the Coast region under the disguise of privatization," said Coast Parliamentary Group Chairman Benedict Gunda.

Further, the Bahari MP said it has come to their knowledge that these individuals have already acquired stakes in the development of berths 11 to 14 at the Kilindini port.

On August 14, 2009 the government issued a Gazette notice stating it would privatise the facility. Key areas earmarked for the privatization are the Eldoret container terminal, Stevedoring services and development of berths.

In the Gazette notice the government pointed out that it was privatizing the facility to enhance Kenya’s regional competitiveness and facilitate investment and economic growth. But the eight MPs on Wednesday said the process should be halted as it has serious repercussions to the region.

Gunda said a study conducted by Ernest & Young to undertake staff rationalization recommended a staff cut at KPA from the current 7,300 to 3,226.

"We as Coast leaders opposed any plans to downsize the work force at the KPA and we demand that the minister for Transport disregards the recommendation of Ernest & Young relating to the downsizing of the workforce at KPA," said Gunda.

Garsen MP, Danson Mungatana indicated he would sponsor a motion to protest at the move to privatise the facility saying the loss of jobs cannot be taken for granted.

"We will oppose this plan of privatization and I intend to sponsor a motion in Parliament to show that we don’t want to take the loss of jobs for more than 4,000 people lying down," said Mungatana.

Mungatana, Kisauni MP, Hassan Joho, nominated MP, Shakila Abdalla and Environment Assistant minister Ramadhan Kajembe said they see no reason for the privatization as KPA is not a loss-making facility.

Shakila also sought to know the compensation programme for those living along the corridor connecting Lamu port and Sudan as about Sh20 billion has already been availed by the Japanese government for the development of the port.

Other MPs present at the press conference were Wundanyi MP, Thomas Mwadeghu, Malindi MP, Gideon Mung’aro and Likoni MP, Masoud Mwahima.

†"This process has more than meets the eye. Some people somewhere want to enrich their pockets," said Joho.

Business
Premium Hiring civil servants on contract will fuel corruption, experts say
By Brian Ngugi 10 mins ago
Business
Kenyan retailers ready to pounce as Ethiopia to open up market
Business
Absa Life Assurance earnings jump 84pc to Sh667 million
Business
Ruto pushes rich nations to boost funding for poor States