A firm linked to the family of Mombasa Governor Ali Hassan Joho risks losing a major business deal after the Kenya Railways Corporation (KRC) revealed plans to revisit the award of tender in the transportation of bulk cargo over the Standard Gauge Railway (SGR).
A draft document seen by the Sunday Nation shows that Autoport Freight Terminals Ltd (AFTL), which is linked to the county boss, and Grain Bulk Handlers Limited (GBHL) risk suffering loses after KRC hinted at reversing its initial decision.
KRC members on Tuesday met for a board meeting to revisit the issue as it seeks to find a solution without facing legal challenges.
Some of the members have accused KRC of favoritism in the awarding of tenders. They alleged that the two firms are always given preferential team over others when it comes to the transportation of cargo from Mombasa to Nairobi.
The companies allegedly earn up to 80 per cent discount instead of the maximum volume discount of 10 per cent as stated in the corporation book.
The reversal of the deal to transport cargo could see the second-term governor’s family lose millions.
The two firms have dominated the Port of Mombasa in the transportation of grain and fertiliser among other forms of cargo.
Thank you for reading my article! You have contributed to my success as a writer. The articles you choose to read on Hivisasa help shape the content we offer.