A company associated with Mombasa Governor Ali Hassan Joho is set to take over an inland cargo terminal in Nairobi amid protests and allegations of corruption.
The company, Autoports Freight Terminals Ltd, has secured exclusive rights to use the Nairobi Freight Terminals (NFT) located near the Standard Gauge Railway (SGR) terminal in Syokimau.
The rights for the terminal, which is owned by taxpayers, have been granted by the Kenya Railways Corporation (KRC) which owns the terminal on behalf of taxpayers.
Autoports will start operations in October, handling all containerised and conventional cargo according to a notice by the Kenya Ports Authority (KPA) dated August 17, to Kenya Shipping Agent Association CEO Juma Tellah.
“Kenya Ports Authority has received a request from KRC to issue you with official communication to allow cargo consignees/importers for both container and conventional cargo to nominate their consignments from the load port to KR Nairobi Freight Terminal (NFT). The facility is a bonded warehouse and will be operated by M/S Autoports Freight Terminal (AFT) and is connected to the SGR line. This allows more importers to use SGR,” read the notice from KPA acting MD John Mwangemi.
Importers intending to use the terminal will have their cargo addressed to NFT c/o. Autoports Freight Terminal- Nairobi.
“Arising from the above, the Authority has no objection to the KR request to have importers do direct nomination as well as change point of delivery to NFT c/o. Autoports Freight Terminal- Nairobi for cargo currently not nominated by importers,” says Mr Mwangemi.
For the 26 acre piece of land, Autoports was required to pay a stand premium of Ksh78 million, exclusive annual rent of Ksh19.5 million, an application fee of Ksh5,000, pegging fees of Ksh50,000, three months’ security deposit of Ksh4.88 million and administrative charges of Ksh100,000.
The lease was to last for 45 years as from December 1, 2018.