This archive report was first published on 14 July 2019.
On July 14, 2019, President Uhuru Kenyatta witnessed the signing of a new shareholding agreement between Kenya National Shipping Line (KNSL) and Mediterranean Shipping Company (MSC) at the port of Mombasa. The deal, which was boycotted by a host of area MPs, marks the handover of Mombasa port's second Container Terminal (CT2) to a joint venture of KNSL and MSC.
According to KPA Chief Executive Daniel Manduku, MSC is expected to hire about 2,000 seafarers and progressively grow the numbers to a high of about 52,000 in 10 years or 200,000 seafarers in 15 years. The port aims to transform into a transshipment centre for the region, with MSC promising to open up the country's port to cruise business.
However, the Dock Workers Union has claimed that 4,000 jobs will be lost and have threatened to go to court to challenge the merger. Union Secretary General Simeon Sang said they have valid reasons to raise concerns over the manner the deal was cut by the government, claiming it was a ploy to sneak privatisation through the backdoor.
