MPs seek to probe Joho firm operations at Mombasa port

A parliamentary committee has lined up the Ministry of Transport for investigations over the activities of Portside Freight Terminals Limited (PFTL) at the Mombasa port following a litany of complaints by the Dock Workers Union (DWU).

This even comes as Kenya Ports Authority (KPA) rubbished claims of favouring the Mombasa Governor Hassan Joho family-linked port firm in its quest to operate a new grain bulk terminal at the port.

Pokot South MP David Pkosing, who chairs the Transport, Public Works and Housing Committee that is investigating the matter, said the committee would summon Transport PS Solomon Kitungu “to shed more light on the matter”.

Also expected before the committee is the KPA officials, Portside Freight Terminals management as well as the Dock Workers Union leadership.

 “The issues raised in the petition filed in Parliament by the DWU are weighty and need urgent attention,” said Mr Pkosing.

 “As a committee, we will get to the bottom of the matter to establish whether Portside Limited is getting preferential treatment from the ministry as alleged.”

Immediate attention

On September 24, National Assembly Clerk Michael Sialai wrote to the Transport PS over the issues dock workers raised. However, Mr Pkosing yesterday confirmed that the committee was yet to get any response from the ministry.

 “These are issues that require immediate attention. I wonder why the ministry has taken long to respond to the complaints,” he said.

KPA acting managing director Eng Rashid Salim in his report, seen by the Nation says the agency recently received a proposal from Portside seeking approval to develop and operate a bulk grain handling terminal at the port where they will construct a state-of-the-art facility.

 “Their request further included a request a licence and wayleave to be issued for the overhead conveyor belt through the G-Section area of the port, of about 450 metres in length to their shore facility,” said Mr Salim.

 “The claims of preference to PFTL are unfounded. The subsisting lease contract between the authority and PTFL arose from a competitive process vide tender No. KPA/116/2005D for the lease of the back of port sheds.”

The KPA, in its report to the MPs, added that Portside, formerly known as Hyse Investments Limited, won the bid. As result, they have been using the shed for storage and warehousing as provided in the lease agreement since 2005.

Lease agreement

 “The initial lease agreement expired in 2019 and was renewed by the Board in December 2019 following their application for renewal,” Eng Salim said adding, “The arrangements between the Authority and Portside and other private operators in the Port, is anchored under Section 12 of the KPA Act which enumerates the powers of the Authority to undertake its business. Section 12(2)(n)(ii) of KPA Act gives power to enter into agreements with any person for the performance or provision by the person (so contracted) of any services or the facilities which may be performed or provided by the Authority.”

The acting managing director said that the KPA Act and Tariff book provide for licensing mechanisms that has customarily been used by the KPA.

 “It, therefore, cannot be said that the operations of PTFL in the port was as a result of preference while there are other private operators in the port on similar or related engagement,” he told the MP’s.

The port agency further said that preliminary investigations into the fatal incident at the Joho’s facility was a ‘mechanical accident’, and not structural issues as raised by DWU.

Eng. Salim said in his response that KPA’s cross functional committee which carried out preliminary investigations “noted that the plausible cause of the accident may have been due to mechanical failure as the plant was being tested by the contractor who did the installation.”

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