Kenya Ports Authority (KPA) last week paid Sh777 million to the National Treasury as dividends, raising the total amount the facility paid to the Exchequer that includes taxes amounting to Sh.2.33 billion in the 2012/2013 financial period, according to a report released on Friday.
On Friday, KPA paid the dividends to Treasury arising from the Sh1.8 billion profits made in the said financial year in what the management says is a clear statement the firm was financially sound to service infrastructure expansion loans advanced to it.
According to KPA Managing Director Gichiri Ndua, the profits were boosted by increased cargo owing to improved operational efficiency and infrastructural expansion at the facility.
Loan obligations
"We want to underline the fact that KPA is able and in a position to meet its loan obligations once advanced to us. This is reflected in the 2012/2013 audited accounts," said Ndua, during the signing of the Sh25 billion loan from the Japanese Government for the construction of a second container terminal at the facility.
The port operator handed a cheque of Sh777 million to the National Treasury Cabinet Secretary Henry Rotich in a ceremony at the KPA headquarters in Mombasa on Friday.
"With regard to the tax arising from the profit KPA has also made (tax) advances to the tune of Sh1.55 billion and in total we (KPA) have paid Sh2.33 billion to the Treasury in terms of taxes and dividends of profits," said Ndua.
The dividends paid to the National Treasury represents 45 per cent of the port's profits, of which the Mombasa County Government has in the past demanded a share.
Port profits
Mombasa Governor Hassan Joho and Senator Hassan Sarai have sustained calls for either the transfer of port management to the county or the creation of a formula on how profits from the facility can be shared.
"Mombasa is the biggest asset situated in Mombasa and we say that the national and county governments should come up with a formula that will see that it benefits the locals," said Joho in a recent function at the port.
Questions have in the past also emerged over the huge loans advanced by development partners like China and Japan governments but KPA says it is able to service the loan.
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