Government Initiates Transfer of 9 KPA Assets to Private Sector
Monday, Kenya Ports Authority (KPA) managing director William Ruto invited bids to enable private companies to operate at least nine port assets.
The tender document obtained by Kenyans.co.ke revealed that the authority had advertised for bidders interested in the public-private partnership (PPP) development and administration of port assets.
Lamu Container Terminal Berths 1 to 3, Lamu Special Economic Zone, Mombasa Port Berths 11 to 14, and Mombasa Port Container Terminal 1 are threatened properties.
Applicants with the KPA/052/2023-2024/CPS bid number have until October 12 to submit their applications.
“Qualification documents will be opened promptly thereafter the deadline for submission in the presence of Bidder’s representatives who choose to attend the opening, at the Procurement Conference Room,” read the tender in part.
The tender signed by the KPA MD indicated that the applicant for qualification may be a single entity or a group of entities, also known as a consortium, which may include private, public, or government-owned legal entities.
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The applicants are also expected to establish a consortium with a Kenyan firm (a Kenyan-registered company) that holds at least a 15% stake in the consortium.
The plan to lease the properties to private companies dates back to June 2023, when President William Ruto initially opposed the idea but later altered his mind to alleviate port congestion.
With the lease, the government hopes to release an additional Ksh1.46 trillion ($10 billion) at the port while attracting private investments totaling Ksh44.5 billion ($304 million) at multiple ports.
Due to the congestion at Mombasa Port, the total amount of cargo transiting through the port’s vital entrance decreased to 33.74 million metric tonnes in 2022, down from 34.76 million tonnes in 2021.
Before assuming power, Ruto opposed a similar plan by his predecessor Uhuru Kenyatta, contending that the previous administration intended to sell the infrastructure to a Dubai-based company.
The Uhuru regime defended itself at the time by stating that it had not signed a contract with any foreign company.
Government Initiates Transfer of 9 KPA Assets to Private Sector
