A firm linked to the family of Mombasa governor Hassan Joho has been stopped from executing a Kenya Ports Authority multi-billion shillings tender for the development of a second grain bulk handling facility at the port of Mombasa. The High Court through Justice Reuben Nyakundi has stopped KPA from awarding a licence to Portside Freight Terminal Limited until a case challenging the award is heard and determined. The KPA board of directors are accused of exercising powers that do not belong to them by approving the way leave and licence to Portside.
According to documents submitted to court by activist Okiya Omtatah, KPA wrote to Treasury cabinet secretary Ukur Yatani on March 11 2021 seeking permission and approval to use single sourcing for the second grain handling tender. And on June 28 2021, the KPA board approved the use of single sourcing and awarded the contract to the Portside Freight Terminals Limited in a move that excluded other would be six bidders. The other bidders whose proposals KPA is said to have ignored include Kilindini Terminals Limited, Mombasa Grain Terminals Limited, Kapa Oil Refinery, Africa Port and Terminals Limited, Multiship International and Kipevu Inland Container EPZ.
Omtatah said the use of single sourcing for the tender was irregular as it was employed by KPA for the sole purpose of favouring Portside and avoid competition from the other bidders. He further argued KPA violated the constitution and went against the provisions of the Public Procurement and Asset Disposals Act. At the same time, the approval by the board was made in contravention of KPA’s Master Plan which anticipated that the said second grain handling facility be developed at either Dongo Kundu area or Lamu port, Omtatah pointed out.
The case which has been set for hearing on August 27 has reportedly elicited heated debate in the port city of Mombasa. Other reports claimed tycoon Mohammed Jaffer who owns the only existing private grain handling facility at the port of Mombasa reportedly celebrated the court ruling on Portside licence. Jaffer’s Grain Bulk Handlers Limited stands to continue enjoying existing monopoly of bulk grain handling at Mombasa port if would be competitors are locked out.
Jaffer bluffed KEBS and killed all Mombasa based millers to set up his Ajab Unga brand now selling under his fictitious firm, Grain Industries Limited(GIL)
Cartels like Mohamed Jaffer should not be allowed, let alone corrupt the State agencies- to run any business in the country.
Jaffer Mohamed used his companies to bribe KPA bosses and transferred 75 per cent of the port operations to himself.
DWU General Secretary Simon Sang, who has been in very bad terms with the Chair also joined the Chair despite their existing differences and demanded that Kenya Ports Authority(KPA) cancels a multi-billion tender awarded to a firm associated with a Mombasa legislator and Raila’s Financier Tycoon Mohammed Jaffer.
The bad blood between DWU Chair and Secretary started in late 2019 after Mohammed Sharia accused their Secretary-General, Simon Sang of impeding the achievement of the Collective Bargaining Agreement (CBA) for its 5,000 members working at KPA.
Sang pointed out that it is a conflict of interest to allow a firm associated with the Mombasa legislator Abdulswamad Nassir, who chaired a national assembly watchdog committee, was awarded a tender to conduct verification of goods and cargo at the inland container depot in Nairobi.
According to Sang, Abdulswamad’s firm has a contract to hire labour at the port of Mombasa, the Nairobi ICD and the Lamu Port.
People worry about Joho’s Port Side CFS until they learn that they have Mohamed Jaffer’s Grain Bulk Handlers Limited which corruptly has a whole terminal at the Port.
In July 2018, the National Assembly’s Transport committee issued a go-ahead on the licensing of a second grain bulk handling company challenging the monopoly of businessman Mohamed Jaffer‘s company.
As by February 2019, the country was solely served by Grain Bulk Handlers Limited (GBHL) owned by cartel Jaffer Mohamed. p to date, Jaffer has crippled KPA and runs 75% of its operations.
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