A consultancy firm owned by a group of former top managers at the Kenya Ports Authority (KPA) bagged a Sh14.84 million contract to guide the review of service charges by the State-owned ports manager, fresh filings showed.
The firm, Maritime Business and Economic Consultants Limited, is advising KPA on new prices amid concerns that inflation has eroded the current service charges.
The consultancy is owned by former top KPA officials, including Francis Gichiri Ndua (former managing director), Twalib Ali Kahmis (former general manager, operations) and Catherine Muthoni Gatere (former general manager, legal services).
KPA is seeking a comprehensive review of its current service tariffs, which were approved with effect from December 2012 and have remained in force since with only minor changes.
The review, KPA says, will allow it to meet its financial objectives relating to the recovery of costs and ensure profitability and operational objectives, while addressing service delivery to maintain competitiveness.
The proposed tariff review will also allow KPA to “earn a return commensurate with the risk” of owning and managing Kenya’s port and inland facilities, according to the agency.
“The overall objective is to meet business demands, respond to changes in operations and business environment, and improve service delivery to continue offering competitive port services,” KPA said in October when it placed a tender call for a consultant to guide the review of the tariffs, which would run for five years between 2024 and 2028.
Apart from capturing the prevailing operating environment, KPA said that its targeted tariffs would also factor in new developments in the logistics chain such as the de-gazettement of the Kenya Ferry Services and its incorporation as a department of KPA and the expansion of the inland container depot.
KPA would also use the tariff review to develop new revenue streams such as salvage tugboat, containment boom services and contingency for fire safety as it seeks to grow and diversify earnings.
Multi-storey building
Apart from tariff reviews, KPA plans to construct a multi-storey office tower away from Mombasa port in a bid to ease congestion, improve security and generate additional revenue by renting out offices and conference rooms.
The complex will comprise approximately 40,000 square metres of office space for KPA staff, four times the space they are using now. It will also have 10,000 square metres of lettable office space, 4,000 square metres of lettable commercial suites and 10,000 square metres of conventional and conferencing facilities.
In addition, the proposed building will have a car parking for approximately 1,200 cars. The building will also have a watchtower and a helipad, marking a major improvement from the current building built in 1978.
KPA says the relocation will also allow the current space of about 10,000 square metres to be used for container handling and storage and therefore easing congestion at the port.
The pre-feasibility study for the building was completed and approved in 2018, and KPA has now launched the search for a consultant to guide on detailed designs and supervision of the construction. The new complex will be located on a parcel of land that currently has mixed-use facilities supporting infrastructure for KPA.
