MPs Give Directive to End Mombasa Tycoon Mohamed Jaffer's Monopoly on Grain Trade
Members of Parliament (MPs) have given a directive that is set to end the dominance of a company associated with Mombasa tycoon in a multi-billion business.
The National Assembly's Transport committee on Friday issued a go-ahead on the licensing of a second grain bulk handling company challenging the monopoly of businessman Mohamed Jaffer's company.
Currently, the country is solely served by Grain Bulk Handlers Limited (GBHL) owned by Mr Jaffer.
The committee gave the Ministry of Transport the green light to construct the second grain bulk handling company at the Mombasa port.
[caption caption="Opposition leader Raila Odinga together with Grain Bulk Handlers chairman, Mr Mohamed Jaffer"][/caption]
GBHL has been providing services to customers importing bulk grain into the region making it a very lucrative business.
Its work begins at the Kenya Ports Authority (KPA) berth, where it removes the bulk grain from vessels.
The grain is transferred by a conveyor-belt system directly to a grain terminal immediately adjacent to the port and from the terminal, the customer can collect the grain using either road or rail systems.
The committee's move is likely to spark industry war as Mr Jaffer has arguably been reported to always emerge ahead of anyone who has tried to challenge his monopoly in the past.
To date, there have been more than five investigations on grain bulk handling at the port of Mombasa.
National Assembly Transport committee chair David Pkosing stated that members were aware that four companies had shown interest in putting up grain bulk handling business and put up grain bagging at the port of Mombasa and at the Inland Container Depot (ICD) at Embakasi in Nairobi.
"We want to encourage other players in the market, this will ensure the ease of doing business and efficiency in gran bulk handling. We want to also encourage the new players once they come on board to ensure the maximum use of Standard Gauge Rail," Pkosing exclaimed.
[caption caption="Grain Bulk Handlers chairman, Mr Mohamed Jaffer together with his associates"][/caption]
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