Two of Mombasa Port terminals have been secretly handed to private company, 254breakingnews can authoritatively report.
Lease documents in our possession show that the agreement between Kenya Ports Authority (KPA) and Portside Freight Terminals Ltd (PFTL) came into force in 2018, two years before the agreement was signed. The agreement was signed on May 19, 2020 and took effect on December 7, 2018, to hand over berth number 7 and eight to the private company.
Interestingly, PFTL would pay Ksh4,160,460 every quarter, and would be free to construct a conveyor system on the Authority’s land. For the fact that the agreement is renewable after ten years upon agreement, and that it was executed even before an agreement was signed, it means the berths in question could be in private hands for longer.
The aforementioned berths are the best and most productive, according to highly placed sources.
The berths make billions in revenue, therefore it raises eyebrows why a company would be charged such a small amount for leasehold.
The 10-page document further reveals that the company will be paying a way leave fee of Ksh87,000 every year, subject to review by the Ports Authority.