This archive report was first published on 28 August 2019.
On August 27, 2019, a three-judge bench extended an injunction barring the proposed takeover of the second container terminal at the Mombasa port. The court, comprising Justices Erick Ogola, Alfred Mabea, and Migure Thande, toured the port in the company of lawyers representing interested parties.
The petitioners, including the Taireni Association of Mijikenda, Muslims for Human Rights, and the Dock Workers Union (DWU), have challenged the planned takeover of the terminal by the Kenya National Shipping Line (KNSL) and the Mediterranean Shipping Company (MSC). The MSC owns 47 per cent shares in KNSL, with the rest owned by the Kenya Ports Authority (KPA).
The petitioners argue that the takeover amounts to privatisation, was shrouded in secrecy, and was not done competitively. They also claim that the deal will lead to job losses. The court has expedited the hearing, taking into consideration the financial impact to the economy and the prejudice the petitioners are likely to suffer.
During the court visit, KPA legal officer Wamuyu Waikwa stated that the container terminal has not been handed over to MSC. However, the DWU disputed this statement, claiming that the shipping line would control more berths, including those yet to be completed.
The implementation of the Memorandum of Understanding (MoU) between the State and the shipping line was stopped two months ago after the three organisations sued. The court's decision came despite an application by State lawyer Guyo Wachira to review last month's suspension of a maritime law that was changed to allow implementation of the port deal.
On July 5, President Uhuru Kenyatta assented to the amended Merchant Shipping Act, which led to the signing of the MoU between the port authority and MSC.
