End Joho monopoly at Mombasa port, South Sudan asks Ruto
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South Sudan in a surprise U-turn requests William Ruto to end the monopoly of a firm associated with Hassan Joho at Mombasa port
South Sudan in a surprise U-turn requests William Ruto to end the monopoly of a firm associated with Hassan Joho at Mombasa port.
The government of South Sudan has requested that President William Ruto eliminate the monopoly of a company connected to the family of former Mombasa Governor Ali Hassan Joho over the processing of cargo from the Mombasa port via the rail line for the neighboring nation.
In a U-turn, South Sudan’s President Salva Kiir now wants William Ruto to allow goods to and from his country to be cleared at the port of Mombasa and not at the Nairobi Freight Terminal (NFT).
As part of its efforts to break the monopoly, Juba wants more businesses, such as Compact, Consolbase, MCT, and MitchellCotts, to be permitted to handle its goods in Kenya.
The Joho family-affiliated Autoport Freight Terminals Limited has been handling nearly all South Sudan imports at the NFT.
“The purpose of this letter is to kindly draw your Excellency’s attention to our discussions on why we in South Sudan have opted to use the port of Mombasa rather than the Nairobi Freight Terminal for all cargo from and to South Sudan,” said Mr. Kiir in a diplomatic note to Ruto.
“It is, therefore, my conviction that your Excellency’s good offices will impress our decision upon the Kenya Ports Authority, Nairobi Freight Terminal, and indeed any other concerned institutions that are tasked with the movement of goods from and to the Republic of South Sudan,” added Mr. Kiir in a note sent to State House through the Foreign Affairs ministry.
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South Sudan reckons that the shift will ensure a smooth flow of goods and stabilize the cost of consumer products in South Sudan.
The port of Mombasa, the biggest in East Africa and the region’s trade gateway, handles imports of fuel and consumer goods as well as exports of tea and coffee for landlocked neighbours such as Uganda and South Sudan.
“Clearing and forwarding transit cargo for South Sudan should be allowed to operate so that no firm has a monopoly over the process,” said Mr. Kiir in the note known in diplomatic lingo as a “note verbale”.
Joho’s family company has enjoyed a near monopoly over the business and was at one time a target of the government over alleged tax evasion.
Autoport won the South Sudan contract on the strength of its deal with Kenya Railways that offered it a terminal at the Nairobi Inland Container Depot, which is connected to the Standard Gauge Railway (SGR) and allowed the easy evacuation of cargo from the Mombasa port.
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