Government Defends Malindi Port Management Contract Amid Opposition Criticism
The government has firmly rejected calls from opposition party ACT Wazalendo to terminate the Malindi Port management contract, citing significant operational improvements and revenue growth.
Following accusations of inefficiency, the government highlighted a remarkable 41 percent increase in revenue since the new port operator took control in September 2023. The Minister for Works, Communications and Transport emphasized that the contract will remain intact, pointing to substantial operational enhancements.
Key improvements include dramatically reduced ship waiting times, previously ranging between 20-40 days and now averaging eight days. The port has also expanded storage capacity from five to eleven acres by constructing a new dry port at Maruhubi, representing a $5 million investment.
Port operations have been streamlined with extended working hours, now running from 8:00 AM to 8:00 PM, compared to previous shorter schedules. The government notes that the new management has absorbed all existing employees while improving overall compensation.
Monthly port revenue has doubled from Sh1 billion to Sh2 billion after operational costs, with government earnings increasing from Sh1.4 billion to Sh2.6 billion per month. Since September 2023, the government has accumulated Sh29.3 billion in profits.
The minister emphasized that the contract was awarded after a comprehensive selection process, with the chosen operator meeting stringent performance standards and offering a 30 percent royalty to the government.
As port efficiency continues to improve, the government remains committed to supporting the current management arrangement and addressing operational challenges strategically.
