The implementation of the government’s plan to lease some berths at the ports of Mombasa and Lamu has begun, with the Kenya Ports Authority (KPA) holding a pre-bid conference.
Last week, KPA officials led by Managing Director William Ruto met with 63 potential investors to kick-start the process. The MD said the conference provided a platform for potential investors to engage directly with government and KPA officials and gather essential information.
“The primary objective of the partnership with the private sector is to enhance the efficiency and effectiveness of ports and improve their capacity and competitiveness regionally and globally,” said the KPA boss.
Mr Ruto assured Kenyans and investors that the concession process will be conducted with utmost transparency, fairness and adherence to the highest standards of governance.
President William Ruto’s administration is seeking private investors to take over the operations and management of five port facilities—Mombasa and Lamu ports, Dongo Kundu Special Economic Zone, Kisumu Port and Shimoni Fisheries Port— through a public-private partnershi.
KPA said the concession of port assets is a strategic move meant to attract private sector investment, encourage technological advancement and improve overall service delivery.
“The pre-bid conference marks the beginning of a comprehensive and transparent bidding process, which will ultimately provide interested and qualified investors with an opportunity to submit their proposals,” said Mr Ruto on KPA’s Facebook page.
In a statement, KPA said the bids will be evaluated based on predetermined criteria, including technical expertise, financial capability and sustainability plans. Successful bidders will then enter into concession agreements with the authority, which will outline their responsibilities, obligations, and expected outcomes.
On Monday, Mr Ruto met Coast MPs to discuss the concessions. A section of the MPs opposed the move saying there was no public participation and involvement of all stakeholders.
“We have had discussions with KPA’s top management and expressed our concerns about the concession of our ports. We would like to understand how they decided to take that course without involving Coast leaders,” said Coast Parliamentary Group chairperson Danson Mwashako. The Wundanyi MP said the matter has caused division among stakeholders.
“As a leader, I do not support concession. We would like to understand to what extent the workers who are our young people from the Coast will be affected. Moreso, the Port of Mombasa generates a lot of money, I do not understand why they have developed the idea of giving it to an individual instead,” said Kisauni MP Rashid Bedzimba.
However, Lamu East MP Ruweida Mohamed expressed her support for the development of the Lamu port.
“If there is anything that will benefit the Port of Lamu, I will strongly support it. I am here for the interests of the people of Lamu,” she said.
Early this month, President Ruto said that his government does not intend to privatise the ports, but will undertake concessioning to make them more competitive. He also pledged to ensure the involvement of all stakeholders including Coast leaders in the matter.
“I promised to return the port operations to Mombasa, I delivered on that. But returning the port operations to Mombasa is not enough. We need a port development plan, that is why we have announced a concession plan,” said the President.
President Ruto said the Mombasa port is a big resource, however, it is not operating optimally and was ranked number 326 out of 348 ports globally in the World Bank’s latest ranking.
