Commission, workers union lock horns over port privatisation

by Patrick Beja

The Privatisation Commission of Kenya and Dock Workers Union (DWU) have differed over the impending privatisation of sections of Mombasa port.

The two parties could not reach a compromise, when they met at Bandari College in Mombasa last Monday.

Mr Solomon Kitungu, Privatisation Commission Chief Executive Officer disagreed with DWU General Secretary Simon Sang who argued the privatisation plan would lead to massive job losses.

Kitungu argued services would be privatised for the port to compete effectively with other ports in the world.

The bottom line was that private investors would inject much needed capital to buy costly equipment.

Targeted areas for privatisation include berths number 11 to 14.

Job losses

"Due to limited development resources from the Government and donors, the private sector should inject more resources in the development of the port," Kitungu told the meeting.

He said efficiency would be achieved if private investors are allowed to inject capital into targeted areas.

"Obviously, jobs will be lost but this would be good because Kenya Ports Authority (KPA) will not spend a lot of its limited financial resources to maintain a large workforce. We must make hard decision to leave a better environment for our future generation," said Kitungu.

But Sang and members of DWU said the explanation was not convincing, as KPA was making huge profits and did not deserve to be privatised.

"Since I have not been convinced, we are giving the Commission 30 days to revoke gazette notice for privatisation of the port or we go on strike," said Sang.

The port privatisation programme has been fully backed by the Ministry of Finance, and affects various parastatals including some sugar companies.

Before convening the Mombasa meeting with dockers, the Privatisation Commission had weathered an uproar from the DWU and the Central Organisation of Trade Unions (Cotu) who had opposed the plan.

Sang and Cotu Secretary General Francis Atwoli vowed to stop the privatisation at a recent workers’ rally in Mombasa. The unionists have argued that since KPA made a record Sh5.3 billion profit in the last financial year, it is efficient.

But in a recent letter to the DWU, Kitungu maintained they have followed the law in implementing the programme at KPA.

He denied reports that the commission has not followed the laid down procedure in pursuing the privatisation plan at Mombasa port.

Other targeted areas for privatisation are stevedoring (loading and unloading of cargo) services and the Eldoret Inland Container Depot.

DWU, with 6,000 members, has threatened to call a strike if the Government does not stop the process.