The State’s plan to transfer control of Mombasa, Lamu, and Kisumu ports to a terminal operator located in Dubai has been rejected by the Dock Workers Union (DWU).
The union did, however, endorse the privatization of the three counties’ special economic zones—but only after extensive public consultation with key stakeholders.
If the agreement is put into effect, Dubai Port World (DP World), a top provider of integrated logistics solutions, will sign concession accords giving it the authority to manage at least four berths at the Mombasa port, the three completed berths at the Lamu Port, and three special economic zones.
According to a letter dated March 30 and sent to DP World Chairman Sultan Ahmed Bin Sulayem, signed by National Treasury Cabinet Secretary Ukur Yatani, who was present at the negotiations in Nairobi and Abu Dhabi, Kenya nominated DP World to build and manage various port facilities in Mombasa, Lamu, and Kisumu.
In response to criticism from the Kenya Kwanza alliance that the government was “auctioning” strategic national assets, Mr. Yatani stated on Wednesday of last week that the government’s action was intended to improve economic operations of the Lamu Port South Sudan Ethiopia Transport (Lapsset) Corridor as well as transform the ports into a hub around the region.
The proposal to privatize crucial services at the Port of Mombasa has aroused opposition from the Kenya Kwanza alliance of Deputy President William Ruto.
DWU chimed in on the situation yesterday and vowed to take Yatani to court if he did not reveal the agreements with DP World within seven days.
The DWU wants to know how much of the contract was negotiated by the Treasury, according to Simon Sang, secretary general of the union.
“Is it about a special economic zone or port? But our stand is we are not happy with DP World taking over the port operations. We are giving the National Treasury seven days to respond to us failure to which we shall meet in court,” said Sang.
He said Dubai operators are not good employers.
“DP World all over the world is not always known for being a good employer in terms of taking care of workers’ interests,” said Sang.
He said they will not allow DP World to be part of the port arrangements unless there is a special arrangement involving the union members.
“We don’t want DP World to have a say because we have seen how they treat workers in other countries,” said Sang.
