Danson Mungatana says Kenya Ports Authority won't remit revenue to Mombasa County

Kenya Ports Authority (KPA) Chairman Danson Mungatana has ruled out the possibility of the Mombasa port sharing its revenue with the Mombasa County government.

Mr Mungatana told a business forum in Mombasa on Friday that the seaport is a national asset and cannot be forced to remit part of its revenue to the county government.

He said KPA was established by an Act of Parliament in 1974 as a national asset and will continue to remit its revenue to the national Treasury.

Mr Mungatana’s statement is likely to further fuel the raging controversy over a plan to take over ownership of the facility being spearheaded by Governor Ali Hassan Joho, Senator Hassan Ali Omar and some MPs in the county.

Mr Joho and Mr Omar want the port to be managed by the county government, arguing that it was one of its natural assets.

While addressing the Kenya National Chamber of Commerce and Industry (KNCCI) annual conference at the Sarova Whitesands Beach Resort and Spa on Thursday, Mr Mungatana said KPA will remit its revenue according to the current law, which stipulates that its finances go directly to the national government.

“The question of (the port) paying revenue to the national government is not negotiable. There should never be any conflict over this matter and it should not be an issue,” he said.

PORT REVENUE

The chairman was reacting to calls by the county executive for Trade, Industry and Energy, Mr Mohamed Ibrahim Abdi, who told the same gathering that the county wants part of the port revenue to be retained by the county.

“We need a portion of the billions made at the port which is within our jurisdiction to remain here. This will enable us (to) improve service delivery to the people. We have a huge responsibility, such as managing the Coast General Hospital, which takes care of patients from all coast counties,” said Mr Abdi.

Mombasa KNCCI branch chairman James Mureu supported Mr Abdi’s views that the county deserved to get a portion of the revenue.

“Mombasa County should get a share of the port revenue. The tear and wear on its roads is a result of trucks moving in and out of the port and the facility should chip in,” said Mr Mureu.

But Mr Mungatana said the road construction mandate falls under the county and national governments through the Kenya Roads Authority and the Kenya National Highways Authority .

Mr Mungatana, however, said KPA would cooperate and work closely with all the counties where it has small ports, such as Kwale and Lamu.