Joho family firm got SGR terminal deal on forged letters

By - - [General]

A logistics firm linked to the family of former Mombasa governor Ali Hassan Joho was awarded a contract on concessionary terms to operate at the taxpayer-funded inland cargo terminal in Nairobi in 2018 based on forgeries of board resolutions by the then-acting Kenya Railways Corporation (KRC) managing director, the Auditor-General says in a special audit report.


Autoports Freight Terminal Limited had sought to be given concessionary lease terms after being allowed to set up at the Nairobi Freight Terminal (NFT), similar to those awarded months earlier to Grain Bulk Handlers Limited (GBHL), which was setting up its own facility in Athi River.


The firm wanted to pay a discounted freight tariff of $450 per wagon of 60 tons for a period of 10 years, waivers of stand premium and annual rent premium for 10 years, automatic renewal of its 45-year lease and a termination clause period of 24 months.

The KRC board, however, voted to reject these waiver appeals, saying that they were only available to firms setting up their own greenfield facilities, rather than those using existing terminal facilities.

The board resolved that offering comparative rates for the Autoports’ operation at the NFT and the proposed rail logistics hub at Athi River by GBHL was not like for like because NFT had already been developed through public funds.





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