Finance Minister Ndung’u Opposes Mombasa’s Port Revenue Sharing
The hopes of Mombasa County government to share in the revenue generated from the Port of Mombasa have been dashed by Finance Minister Njuguna Ndung’u, who states that this move is against the constitution.
Professor Ndung’u affirmed that there is no provision in the Kenyan Constitution that mandates the sharing of revenue from national assets with county governments. He maintained that this situation will persist until the Constitution undergoes revision.
“The port is a national government property, and there are no laws or regulations enacted by the legislature to guide the allocation of its revenue. Thus, there is no dispute on this matter. The law clearly states that all ports belong to the national government, while county governments have their own assets,” said Professor Ndung’u.
This announcement was made this week during the launch of the Kenya Revenue Authority’s online auction, quashing Mombasa County’s dreams of obtaining a portion of the at least 55 billion shillings collected annually from the Port of Mombasa.
This goes against the promise made by President William Ruto to Mombasa County during his coastal region tour at the end of July 2023.
During a stakeholders’ meeting that he led at the Kenya Ports Authority offices, President Ruto instructed the Ministry of Transport and the authority to collaborate with the county government to make this idea a reality.
“In my view, Mombasa has the right to receive a share of the revenue generated from the port,” the President said.
The President’s directive was a response to a request by Mombasa Governor Abdulswamad Sheriff Nassir, who argued that subnational governments worldwide oversee their ports and related infrastructure and urban development plans.
“The Kenyan Constitution anticipated that subnational governments would receive a share of revenue from assets found within their borders,” Nassir said, cheered on by leaders from Mombasa and the entire coastal region.
However, the county government has taken a different approach to garner support from the Kenya Ports Authority on this matter.