Mathias Ringa and Gitonga Marete
13 October 2008
Nairobi — A Cabinet minister on Monday backed Prime Minister Raila Odinga's decision last week to cancel a tender for a second grain handler at Mombasa port.
Transport minister Ali Chirau Mwakwere said Grain Bulk Handlers Limited was the only operator authorised by the Government to handle grain at the port.
"I fully support the Prime Minister on the decision to cancel bids for a second facility to allow the Cabinet and concerned parties to discuss the matter," Mr Mwakwere said.
"The Government is not closing the door on the issue, but we must weigh the advantages and disadvantages. I received a letter from the Dock Workers Union indicating that 1,000 jobs might be lost if another facility is set up," he said.
Mr Mwakwere, however, said he was not opposed to the establishment of a second grain handling outfit, adding that interested parties will get an opportunity to set up one when the Government establishes another port in Lamu in the near future.
Political heat
Kenya Ports Authority had invited bids from interested investors to set up another handling facility to compete with Grain Bulk Handlers, but the tender was cancelled indefinitely last week.
Commenting on the KPA top job, which has generated a lot of political heat in the Coast region, Mr Mwakwere said the Government will announce the authority's new managing director before the end of this month.
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