KPA lost Sh195m in container handler deal, court files reveal

A section of the Mombasa port. [File, Standard]

The Kenya Ports Authority (KPA) risks losing Sh195 million paid for five Kalmar empty container handlers after the machines it contracted to procure were allegedly diverted and sold to a port in Tanzania, court documents have revealed.

The equipment, which KPA purchased from Power Parts (Kenya) Limited and Kalmar in 2025, was to be delivered to the Mombasa port. Instead, the machines were allegedly diverted to Tanzania and sold to another port.

The Directorate of Criminal Investigations (DCI) is investigating the matter after KPA reported the alleged fraud, according to court documents.

The machines were subsequently returned to Kenya and are currently being held under security at the Port Police Station in Mombasa, the documents show.

KPA has separately sued Kalmar and Power Parts seeking a refund of the Sh195 million it paid for the equipment.

The authority alleges that Power Parts imported the machines into Kenya but later sold them to another port in Tanzania despite having been paid by KPA for their supply and delivery. The five machines are identified by serial numbers B11500238, B11500239, B11500240, B11500241 and B11500242.

According to the DCI, KPA paid for the equipment for delivery in March 2025, but the machines were allegedly diverted and sold to a Tanzanian port in October 2025.

KPA subsequently reported the matter to police, prompting the DCI to commence investigations.

The investigation took a legal turn after DCI officers in Mombasa summoned directors of Power Parts. The company moved to the High Court and obtained interim orders stopping the investigations and enforcement action against it and its officials.

The orders were issued by Mombasa High Court Judge Wendy Kagendo Micheni in a case filed by Power Parts against the County Criminal Investigations Officer, Mombasa, the Regional Criminal Investigations Officer, Coast, and other respondents.

The court temporarily restrained the DCI and its officers from arresting, summoning, detaining, charging, arraigning or prosecuting Power Parts, its directors, officers, employees or agents over the complaint.

Justice Micheni also suspended enforcement of a complaint lodged by KPA on September 1, 2026, and a September 2 decision by the DCI to commence investigations.

The judge further suspended the effect of a warrant and order issued by the Mombasa Chief Magistrate's Court on September 8, as well as any processes arising from the complaint and the contested orders.

The respondents were also barred from disposing of, dealing with, encumbering or interfering with evidence relating to the case.

KPA was restrained from initiating, maintaining or supporting a criminal complaint against Power Parts over the subject matter of the High Court case, or relying on material allegedly obtained under the disputed magistrate's court warrant.

The High Court ordered the respondents to disclose, on oath, the whereabouts, custody and condition of two of the machines, serial numbers B11500238 and B11500239.

The court also directed that any material already obtained by the DCI from interested parties under the disputed orders be sealed, preserved intact and deposited with the Deputy Registrar.

The respondents must disclose the extent of the material obtained and identify every person to whom any part of it has been disclosed.

The interim orders will remain in force pending further directions when the case comes up for hearing on October 5, 2026.

The dispute centres on five Kalmar empty container handlers that KPA says it paid for but did not receive as contracted.

According to the documents, Power Parts had imported the equipment into Kenya before they were allegedly diverted to Tanzania.

The machines were later returned to Kenya after the Tanzanian port that had acquired them became aware of the dispute, according to court proceedings.

Upon their return, the DCI impounded the equipment. They are now being held at the Port Police Station in Mombasa.

KPA alleges that it was defrauded of public funds after paying for equipment that was subsequently sold elsewhere.

The authority is seeking recovery of its Sh195 million through separate civil proceedings against Power Parts and Kalmar.

Sources familiar with the matter said KPA's priority was now recovery of the money rather than taking possession of the machines, which have already been used. The sources also said three other similar machines remained unaccounted for.

Power Parts (Kenya) Limited is owned by Bharat Devidas Jeram Veitha, a Kenyan national with 99 ordinary shares, and Vishal Soni, a British citizen, with one ordinary share.

The court has not determined the allegations against Power Parts, its directors or Kalmar. The case is scheduled for further hearing on October 5.