KPA Boss Ruto Implicated in Sh31.2 Billion Tender Scam

Activist Files Lawsuit Against Kenya Ports Authority MD Over Alleged Corruption in Japanese-Funded Project

MOMBASA – Kenya Ports Authority Managing Director Captain William Ruto is facing serious corruption allegations over a controversial Sh31.2 billion tender awarded to Japanese construction firm Toa Corporation for the Mombasa Special Economic Zone development project.

Francis Awino, president of Bunge la Mwananchi, has filed a petition at the High Court in Mombasa accusing the KPA boss of violating the Constitution and engaging in procurement irregularities that have compromised transparency and accountability at the state agency.

In his July 3 petition, Awino claims that under Ruto’s leadership, KPA has been “mired in allegations of corruption, procurement irregularities, and abuse of office.”

The activist specifically targets the award of the Sh31.2 billion contract to Toa Corporation, which was financed under the Japan International Cooperation Agency (JICA) Official Development Assistance loan scheme.

According to the petition, the procurement process was “tainted by collusion, abuse of discretion, concealment of procurement details, and undue exclusion of local expertise and oversight.”

Awino argues that the project was executed “under secrecy and without adequate stakeholder disclosure or competitive input.”

The petitioner claims that critical documents including evaluation reports, feasibility studies, local contractor opportunities, and environmental impact assessments were never subjected to public participation, violating constitutional requirements for transparency in public procurement.

The Mombasa Special Economic Zone Development Project is part of Kenya’s ambitious infrastructure development plan, with the entire project valued at approximately Sh59 billion.

The JICA loan scheme is structured as a Sh6 billion grant and a Sh50 billion concessional loan payable within 30 years.

Toa Corporation was awarded the contract for Package 1: Civil and Building Works in 2024, with construction expected to be completed in approximately 38 months.

The contract amount is around 33.5 billion yen (approximately Sh31.2 billion).

Awino is seeking a declaration that Captain Ruto has breached Chapter Six of the Constitution, which deals with leadership and integrity, and is therefore unfit to hold public office.

The petition argues that while the Special Terms for Economic Partnership (STEP) framework allows preferential procurement to Japanese firms, it still requires adherence to constitutional principles and the Public Procurement and Asset Disposal Act.

The activist claims that the KPA boss failed to disclose critical information about repayment terms, procurement structure, sub-contractor arrangements, and potential conflicts of interest.

Questions have also been raised about whether local firms were unfairly excluded or technically incapacitated through restrictive tendering processes.

Captain Ruto, through his lawyer Augustus Wafula, has vehemently opposed the claims, arguing that the application does not meet the threshold for granting interlocutory relief as it is based on “speculation or inadmissible hearsay.”

“There are no special circumstances in this matter to warrant the grant of mandatory injunction orders as sought in the application,” Wafula stated in court documents.

On Monday, Justice Jairus Ngaah directed the petitioner to serve case documents to all parties involved.

The case has been scheduled for mention on October 6 for further directions.

Awino has named several key institutions as interested parties, including the Ethics and Anti-Corruption Commission, the Directorate of Criminal Investigations, the Director of Public Prosecutions, the Auditor General, the Public Procurement Regulatory Authority, and the National Treasury.

The activist is seeking several orders from the court, including:

– A mandatory order compelling Captain Ruto to publicly disclose all procurement documents, evaluation reports, and correspondence relating to the Toa Corporation project

– An order directing the Public Procurement Regulatory Authority to conduct a compliance audit at KPA

– An order requiring the National Treasury to disclose all financial agreements, counterpart obligations, and loan terms relating to the JICA-financed project

This is not the first time Captain Ruto has faced corruption allegations. In 2023, he was questioned by Members of Parliament over a Sh1.9 billion discrepancy flagged by the Auditor General’s Office. Earlier, in 2019, he was accused of engineering the loss of Sh21 million at the port authority.

The Kenya Ports Authority, which manages all seaports and inland waterways along Kenya’s coastline, has faced multiple corruption scandals over the years, including a Sh2.7 billion scandal in 2020 where investigations revealed that KPA poured at least Sh506 million into a yard it did not own.

The allegations come at a time when the Mombasa port is experiencing record container traffic, with 2024 marking a historic high in throughput. The port serves as a crucial gateway for trade in East Africa, handling cargo for Kenya, Uganda, South Sudan, eastern Democratic Republic of Congo, Rwanda, and Burundi.

Any disruption to the port’s operations or leadership could have significant implications for regional trade and Kenya’s economy, which depends heavily on port revenues and smooth cargo handling.

The case is expected to attract significant attention given the high-profile nature of the defendant and the substantial amounts involved. The October 6 mention date will provide clarity on how the court intends to proceed with the matter.

Meanwhile, the various government agencies named as interested parties will be required to respond to the allegations and may face scrutiny over their oversight roles in the procurement process.