This archive report was first published on 9 July 2021.
Improved efficiency at the Port of Mombasa has come at a cost for Kenya Ports Authority (KPA), with the authority reporting a significant drop in profit for the year to June 2020.
According to KPA's annual report, the authority's net profit stood at Sh3.71 billion over the period, a 62% drop from the Sh9.75 billion recorded in the year to June 2019.
The decline in profit was attributed to reduced revenue from storage of containers, with KPA's revenues declining by 9.5% to Sh50.16 billion over the year to June 2020 compared to Sh55.45 billion in the period to June 2019.
The authority has implemented various measures to improve efficiency at the port, including streamlining Standard Gauge Railway (SGR) operations at Port Reitz yard and centralising cargo handling processes.
These changes have led to increased deliveries to the Inland Container Depot (ICD) in Nairobi, with the introduction of double-deck wagons on SGR significantly contributing to the increase.
Despite the decline in earnings, Mombasa port reported an increase in the volume of cargo handled by three percent to 33.63 million tonnes during the year compared to 32.65 million tonnes in 2019.
As part of the government's directive to surrender idle cash held in bank accounts, KPA paid a hefty dividend to the National Treasury, remitting Sh13.05 billion in the year.
However, the authority was directed to remit Sh18 billion to the exchequer as special dividends, which decreased the bank interest earnings.
