Dubai Port World makes a comeback after a fallout with Uhuru administration
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Dubai Port World makes a comeback in Dongo Kundu bid after a fallout with the Uhuru Kenyatta administration
Dubai Port World makes a comeback in Dongo Kundu bid after a fallout with the Uhuru Kenyatta administration.
The Kenyatta administration and UAE company Dubai Port World (DP World) were unable to come to terms on the development of three commercial ports, but DP World has now expressed interest in creating the Dongo Kundu Special Economic Zone (SEZ) in Mombasa.
During former President Uhuru Kenyatta’s administration, DP World was on the verge of taking over key port operations in the country.
In order to manage and run numerous infrastructure components in the ports of Mombasa, Lamu, and Kisumu, DP World applied for concession licenses last year.
But the Kenya Kwanza principals strongly opposed the move remarking that it was unconstitutional and shrouded in secrecy.
“A matter as critical and fundamental as take-over of our national strategic asset, cannot be purported to be constitutionally processed and concluded without the involvement of Parliament,” Kenya Kwanza co-principals stated on June 29, 2022.
Dubai Port World on February 28, expressed interest to invest in the Dongo Kundu Special Economic Zone (SEZ) in Mombasa.
While visiting Kenya Ports Authority (KPA) headquarters in Mombasa, the firm revealed that it was conducting a feasibility study with an aim of developing the SEZ.
Kenya Ports Authority (KPA) said the project has attracted interest from many companies as it works around the clock to deliver within the project one year.
Acting KPA Managing Director John Mwangemi March, 1 met with a delegation from DP World led by Head of Project Portfolio Group Planning and Project Management Haism Ezz Elarab.
“KPA is currently focused on capacity expansion of the port of Mombasa with the construction of Berth 23 on the offing. By partnering with initiatives like the Mombasa Port Development Project, the facility had enhanced its capacity and efficiency,” said Mr. Mwangemi.
DP World came into the limelight early last year after retired President Uhuru Kenyatta’s administration engaged it to upgrade facilities at Mombasa, Lamu, and Kisumu ports.
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According to documents dated January 2022, Kenya was considering signing a concession agreement with DP World to undertake the development, operation, management, and expansion of transport logistics services in the country on various components.
If the agreement was implemented, DP World would have been given the power to run at least four berths at the port of Mombasa, the three Lamu Port completed berths, and three special economic zones. But in July of the same year, the government tore up the deal.
During the campaigns, then Deputy President William Ruto accused his Uhuru Kenyatta, of trying to sell the port to foreign entities.
But now DP Rigathi Gachagua said an audit was underway following reports that the previous administration had offered DP World a tender for the development, operation, and management of the country’s four ports.
“In the sunset days of the last regime, there were games being played and I want to thank some of the KPA board of directors for their patriotism because they refused to allow theft of the port.,” Mr. Gachagua said.
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