This archive report was first published on 30 August 2019.
On August 30, 2019, Kenya Ports Authority (KPA) denied allegations that it had privatized the Sh30 billion second terminal at Mombasa port. The denial came despite KPA signing a Memorandum of Understanding (MoU) with Mediterranean Shipping Company (MSC) to revive the Kenya National Shipping Line (KNLS).
According to KPA lawyer Sanjeev Kagram, MSC does not have any ownership rights of the terminal, and KPA has the majority shares and control of the terminal. Kagram made the statement in response to a petition filed by Taireni Association of Mijikenda and Dock Workers Union (DWU), which challenged the MoU, terming it as a move to privatize the port and lead to job losses.
“The entire petition is based on MSC being handed the port. The State has the majority shares and it has maintained the control of the terminal at the port. MSC does not have any ownership rights and does not run the operations,” said Kagram.
MSC lawyer Kamau Karori, however, stated that KPA and MSC are shareholders who co-own KNSL, a private entity incorporated in 1987. Karori said KPA is the majority shareholder with 238,670 shares and MSC owns 38 per cent of KNSL since 1997.
