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{
    "id": 1052359,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1052359/?format=api",
    "text_counter": 48,
    "type": "speech",
    "speaker_name": "Kitui Rural, CCU",
    "speaker_title": "Hon. David Mboni",
    "speaker": {
        "id": 13388,
        "legal_name": "David Mwalika Mboni",
        "slug": "david-mwalika-mboni-2"
    },
    "content": " Thank you, Hon. Temporary Deputy Speaker for giving me this opportunity to support this Motion on optimisation of revenue in grain handling services at the Port of Mombasa. The Port of Mombasa handles a lot of dry grains for Kenya, Uganda and all the neighbouring countries. In fact, it should be noted that this country imports 90 per cent of the wheat that we consume. However, we have only one firm that handles dry grain and that is a monopoly. A monopoly is a dangerous operator. It can dictate the price it can pay even to the port. It also dictates the price it charges in handling the grains. Therefore, we should fight monopoly. This firm, through the wayleave agreement of 1992 and another agreement of 2000, was given 35 years to operate in berths III and IV. We should also commend the firm because it has heavily invested in mechanised facilities, vessel handling, bulk transport terminal, warehousing and transport services. What I am saying is that to put up a bulk handling facility is expensive. The firm also has another facility in Athi River, which handles non-food products like core and fertiliser. This has resulted in efficiency in terms of handling grains. Before, grains used to be carried by people physically. Now, because of those facilities, handling grains becomes a bit easier. From the findings in the Report, according to the KPA tally book, the firm is supposed to charge US$3.85 per metric tonne. However, it charges US$10.4 per tonne on professional bulk handlers. What this means is that handling is more expensive than before. Because these are conventional bulk handlers, like the maize millers, this cost is transferred to the final consumer. Therefore, we need to open up this sector. In the recent past, there was Kilindini Terminal Ltd, which was granted a wayleave to operate in Berth V, but we realised that Berth V has a width of 75 metres while the ships that dock in Mombasa are over 200 metres. Therefore, Kilindini Terminal could not operate. The Committee recommends that more bulk handling firms should be licensed to facilitate efficiency and reduce the cost of bulk handling. In the process, this reduction will be transferred to the final consumer. A bulk handling area should be set aside in upcoming ports, like the Port of Mombasa, Dongo Kundu Special Economic Zone, Lamu and Garissa. More importantly, the Government should look for public-private partnerships to construct berths specifically for handling grains. This will reduce pressure from the Exchequer."
}