Coast Business Leaders Demand Dissolution of KPA Board and Firing of Transport PS Gaghar Over Corruption Allegations

Influential Coast businessmen petition President Ruto to dissolve Kenya Ports Authority board and dismiss Transport PS Mohamed Daghar amid explosive graft claims

A powerful coalition of Coast region business leaders has issued an urgent petition to President William Ruto demanding the immediate dissolution of the Kenya Ports Authority (KPA) Board of Directors and the dismissal of Transport Principal Secretary Mohamed Daghar over serious corruption allegations that have rocked the country’s premier maritime gateway.

The unprecedented call comes in the wake of explosive media exposés revealing a web of procurement fraud, insider trading, and systematic looting at KPA that has allegedly cost taxpayers billions of shillings through inflated contracts and irregular tenders.

The Corruption Allegations

The scandal centers on a multi-billion-shilling tender allegedly authorized by the Managing Director’s office, with whistleblower accounts and leaked documents pointing to extensive procurement malpractice that has compromised the integrity of one of Kenya’s most vital revenue-generating agencies.

Among the most damaging allegations is a controversial KSh 200 million contract linked to board member Dr. Consolata Lusweti for painting stands at the Likoni Channel.

Sources indicate the tender was awarded to a Somali businessman serving as a proxy, completely bypassing standard procurement procedures and delivering substandard results.

Board Chairman Benjamin Dalu Tayari faces separate but equally serious allegations of facilitating corrupt networks through shell companies and questionable acquisition of a KSh 40 million luxury vehicle under circumstances that have raised red flags among investigators.

Key Figures Under Scrutiny

The corruption allegations implicate several high-ranking officials, including:

• Benjamin Dalu Tayari – KPA Board Chairman and former Kinango MP, appointed in January 2023 for a three-year term
• Mohamed Daghar – Principal Secretary for Transport, appointed in November 2022
• Dr. Consolata Lusweti – Board Director, described as a close ally of Musalia Mudavadi with political ambitions for Kakamega’s Woman Representative seat
• Lucas Maitha – Board member
• Lawrence Kibet – Board member
• Daniel Muriungi Mugao – Board member
• Beatrice Nyamoita – Board member

Business Community’s Response

The petition has been spearheaded by prominent Coast businessmen including Mombasa businessman Athman Haroun Ismael, Kilifi’s Kenga Mrima, and Yatour Kirui, who have accused the KPA Board of lacking moral legitimacy and operating as a political reward scheme that undermines merit and professionalism.

“We are appalled, but not surprised, by these revelations exposing the looting spree at KPA,” the business leaders stated in their petition. “We raised concerns in 2023 when the current board was appointed, and unfortunately, we’ve been vindicated. The government favoured tenderpreneurs over professionals.”

The coalition argues that board members are exploiting their positions to build personal war chests ahead of future political campaigns, pointing to Lusweti’s public displays of wealth and ongoing political maneuvering by other members as evidence of their claims.

KPA’s Response

In response to the mounting allegations, KPA’s Corporate Communication Department issued a defensive statement saying: “KPA has taken note of recent media reports alleging irregularities in certain procurement processes within the organisation. These media reports do not reflect the facts or the operational standards of KPA.”

However, the business community remains unconvinced by the denial, describing the board as a politically compromised entity with no genuine commitment to ethical leadership or port development.

Call for Investigation

The petitioners have called on Kenya’s key investigative agencies to launch immediate probes into the board’s conduct, specifically targeting:

• Ethics and Anti-Corruption Commission (EACC)
• Directorate of Criminal Investigations (DCI)
• Asset Recovery Agency

The EACC has previously taken action against KPA officials, including the arrest of a Senior Administrative Secretary over a KES 6.4 million tender conflict of interest case in July 2024.

Historical Context

The current scandal adds to KPA’s troubled history with corruption. In 2019, the DCI launched a probe into what investigators believed was a Ksh 2.7 billion tender scandal at KPA, implicating top officials including the then-Managing Director Daniel Manduku.

Political Implications

The corruption allegations come at a sensitive time for President Ruto’s administration, which has made the fight against corruption a key pillar of its governance agenda.

The involvement of high-ranking officials from the Kenya Kwanza government, including Transport PS Mohamed Daghar, adds a political dimension to the scandal that could have broader implications for the administration’s credibility.

Dr. Lusweti’s reported close ties to Musalia Mudavadi, a key figure in the Kenya Kwanza coalition, and her rumored political ambitions for the Kakamega Woman Representative seat, further complicate the political dynamics surrounding the scandal.

The Stakes

As one of East Africa’s largest ports and a critical gateway for international trade, KPA’s integrity is vital to Kenya’s economic prospects. The port handles the majority of cargo for landlocked countries including Uganda, South Sudan, eastern Democratic Republic of Congo, and Rwanda, making any disruption to its operations a regional concern.

The business community’s petition represents more than just local frustration; it reflects broader concerns about governance standards in key state corporations and the potential impact of corruption on Kenya’s economic competitiveness.

What’s Next

President Ruto now faces mounting pressure to act decisively on the corruption allegations. The business leaders’ petition demanding complete dissolution of the KPA board represents one of the most direct challenges to his administration’s handling of corruption in state corporations.

The president’s response will likely be seen as a test of his commitment to fighting corruption and could set a precedent for how similar allegations against other state corporations are handled in the future.

As investigations continue and pressure mounts, the future of the embattled KPA board – and the broader integrity of the government’s anti-corruption drive – hangs in the balance. The coming weeks will be critical in determining whether President Ruto will accede to the demands for wholesale changes at one of Kenya’s most important state corporations.