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In 2021 Kenya turned to port operator Dubai Port World (DP World) to manage Lamu Port due to a lack of capacity at the state-run Kenya Ports Authority.
It was then alleged that...
Treasury Cabinet Secretary Ukur Yatani said DP World was among port operators being explored by the government as potential private partners to run the new port.
Kenya has disowned promises of a July tender made to Dubai Port (DP) World that would have allowed the UAE-based firm to offer a bid for development, operation and management of the country’s four ports.
The timing of the deal was also questioned since Kenya will soon be heading into a general election. Its implementation may depend on the incoming administration. They were also fears that Kenya was auctioning her strategic national assets raising national security concerns.
Lamu berth which was launched in 2021 could not be completed due to insufficient funds. Without proper funding, the authorities now result to borrow cranes, trailers, gantries, oil spill response, and marine equipment from the Mombasa port.
With these struggles, DP world was hopeful Kenya was ready to privatize the port before the august general election. Kenya in principle had already agreed to prefer DP world over other companies in a deal between the two states.
DP world dealings have been challenged and even rejected before with some countries. In 2006 they were expected to take over six US ports in a deal worth billions. However, was dropped by the US congress citing a security threat.
They had also been previously taken to court by Djibouti. It was alleged they bribed officials to get a deal to run Dolareh – the largest container terminal in Africa.
In 2021 Kenya turned to port operator Dubai Port World (DP World) to manage Lamu Port due to a lack of capacity at the state-run Kenya Ports Authority.
It was then alleged that...
- Kenya signed a deal with the Dubai government to allow Dubai Port (DP) World to manage Kenya Ports Authority terminals.
- The deal was set to materialise in July 2022, with the government required to release a request for proposals before the August 2022 General Election.
- Kenya turned to port operator Dubai Port World (DP World) to manage Lamu Port due to a lack of capacity at the state-run Kenya Ports Authority.
Treasury Cabinet Secretary Ukur Yatani said DP World was among port operators being explored by the government as potential private partners to run the new port.
Kenya has disowned promises of a July tender made to Dubai Port (DP) World that would have allowed the UAE-based firm to offer a bid for development, operation and management of the country’s four ports.
The Opposition to The Deal
The deal came under heavy criticism and opposition pointing out it did not fulfill the required bidding process stipulated by Kenyan procurement law. The law outlines the principles of public assets require efficiency, transparency, and provision of timely information to the public.The timing of the deal was also questioned since Kenya will soon be heading into a general election. Its implementation may depend on the incoming administration. They were also fears that Kenya was auctioning her strategic national assets raising national security concerns.
Treasury rejects the existence of such a deal
The Kenyan treasury has disowned previous comments that Kenya was seeking potential private partners to run the new Lamu port. Reports had indicated Kenya needed help due to insufficient equipment which has led the port to be massively underutilized.Lamu berth which was launched in 2021 could not be completed due to insufficient funds. Without proper funding, the authorities now result to borrow cranes, trailers, gantries, oil spill response, and marine equipment from the Mombasa port.
With these struggles, DP world was hopeful Kenya was ready to privatize the port before the august general election. Kenya in principle had already agreed to prefer DP world over other companies in a deal between the two states.
DP world dealings have been challenged and even rejected before with some countries. In 2006 they were expected to take over six US ports in a deal worth billions. However, was dropped by the US congress citing a security threat.
They had also been previously taken to court by Djibouti. It was alleged they bribed officials to get a deal to run Dolareh – the largest container terminal in Africa.