This archive report was first published on 26 August 2021.
On August 26, 2021, Justice Reuben Nyakundi of the High Court issued a temporary injunction against the Kenya Ports Authority (KPA) from awarding a licence to Portside Freight Terminal Limited until a case filed by activist Okiyah Omtatah is heard and concluded.
Omtatah accused the KPA board of directors of exceeding their authority when they approved the licence to Portside Freight Terminal Ltd, a company owned by Mombasa Governor Hassan Joho and his brothers. The licence was awarded despite the company winning a multi-billion shilling tender to develop a second grain bulk handling facility at the port of Mombasa.
Documents filed in court by Omtatah revealed that KPA wrote to the Treasury cabinet secretary, Ukur Yatani, on March 11, 2021, requesting permission to use single sourcing for the second grain handling tender. The request was approved by the board on June 28, 2021, and the contract was subsequently awarded to Portside Freight Terminals Limited.
However, six qualified bidders, including Mombasa Grain Terminals Limited, Kapa Oil Refinery, and Kilindini Terminals Limited, were locked out of the tender process after their proposals were ignored.
Omtatah argued that single sourcing was being used to favor Portside Freight Terminal Ltd, which feared competition from competent bidders. The activist also claimed that the KPA's move contravened the law and breached provisions of the Public Procurement and Asset Disposals Act.
The case has sparked controversy, with some accusing the Joho brothers of using their influence to secure the tender. The hearing is set for August 27, 2021.
