KPA denies handing Sh30 billion second terminal to MSC

Kenya Ports Authority (KPA) has said it still owns and runs the Sh30 billion second terminal at Mombasa port.

This is despite signing a Memorandum of Understanding (MoU) with Mediterranean Shipping Company (MSC) to revive the Kenya National Shipping Line (KNLS).

KPA and MSC have disputed claims that the Government has privatised the operations of the second terminal through the (MoU) signed between the two entities.

On Wednesday, KPA lawyer Sanjeev Kagram told justices Erick Ogola, Justice Alfred Mabea and Justice Migure Thande that MSC does not have any ownership rights of the terminal and KPA has the majority shares and control of the terminal.

Mr Kagram was responding to a petition in which Taireni Association of Mijikenda and Dock Workers Union (DWU) have challenged the MoU, terming it as a move to privatise the port and which will lead to loss of jobs.

“The entire petition is based on MSC being handed the port. The State has the majority shares and it has maintained the control of the terminal at the port. MSC does not have any ownership rights and does not run the operations,” said Kagram.

He said that the Memorandum of Understanding between KPA and MSC was commercial and there was no need for public participation.

“This is a commercial and not constitutional matter and, therefore, it is outside the realm of the constitutional court,” said Kagram.

The applicants want the terminal to be run solely by KPA to the exclusion of MSC.

They have sued the Attorney General, KPA, National Assembly, The Seafarers Association and Transport and Infrastructure Cabinet Secretary.

MSC lawyer Kamau Karori told the court that KPA and MSC are shareholders who co-own KNSL, a private entity incorporated in 1987.

Karori said KPA is the majority shareholder with 238,670 shares and MSC owns 38 per cent of KNSL since 1997.