BUSINESSECONOMY

Joho Brothers Face Multi-Million Loss

Share
Share

The Joho family, including former Mombasa Governor Ali Hassan Joho and his brother, businessman Abu Joho, are staring at potential losses running into the millions of shillings following a new move by President William Ruto’s administration to enable more logistics firms to handle  cargo headed to South Sudan.

Trade Principal Secretary Mohammed Daghar has announced the nomination of firms to handle imports to South Sudan – Compact, Consolbase, Mombasa Container Terminal and Mitchell Cotts. The Trade Ministry also announced that importers in South Sudan will be free to use any Kenya Revenue Authority (KRA) custom bonded warehouse.

The Johos through their logistics company Autoports Freight Terminals have for the past two years enjoyed a monopoly in  handling cargo destined for South Sudan from Kenya, thanks to a lucrative contract signed with Kenya Railways Corporation (KRC). Autoports is licensed to operate container freight stations (CFS) – warehouses where export and import shipments are consolidated or deconsolidated.

“We reiterate the same message that importers/cargo owners from South Sudan are free to choose any KRA/Customs approved facility and the government of Kenya cannot direct any party on matters relating to selection of any clearing agencies,” the PS communicated, citing a notice from the South Sudanese government allowing more clearing agencies to handle their cargo.

Autoports had secured exclusive rights to run the inland cargo terminal in Nairobi, sparking protests from rival logistics firms. The company received the rights from the Kenya Railways Corporation (KRC) to use of the Nairobi Freight Terminal (NFT), located near the Standard Gauge Railway (SGR) terminal in Syokimau.

SEE>Joho’s International Transport Business Worth Billions

A notice by the Kenya Ports Authority (KPA) dated August 17th 2021 indicated that the company would handle all containerised and conventional cargo from the terminal.

The company secured  the South Sudan contract on the strength of its logistical set-up as its deal with Kenya Railways handed it a terminal at the Nairobi Inland Container Depot, which is connected to the SGR and allows convenient evacuation of cargo from the port of Mombasa.

NEXT>Inside Waiguru’s Multi-Million Luxury Resort

 

 

 

 

Written by
BUSINESS TODAY -

editor [at] businesstoday.co.ke

1 Comment

Leave a Reply

Your email address will not be published. Required fields are marked *

PAST ARTICLES AND INSIGHTS

Related Articles
kenya pipeline
BUSINESSECONOMYFEATURED STORY

Kenya Pipeline Company Reserves 2 Boardroom Seats for Uganda

Kenya Pipeline Company(KPC) released a Supplementary Information Memorandum and structural updates that...

Nairobi Securities Exchange activity slowed as foreigners took profits
BUSINESSFEATURED STORYNEWSSTOCKS

NSE Activity Dampen as Foreigners’ Exit Big Counters

NSE (Nairobi Securities Exchange) shed KSh 104.7 Billion in market value at...

Cooperatives & MSME Development CS Wycliffe Oparanya.
FEATURED STORY

SACCOs in Governance Crisis: Only 19 Meet Set Compliance Levels

SACCOs (Savings and Credit Cooperative Societies) that are licensed to engage in...

Uchumi Supermarket is currently insolvent
FEATURED STORY

NSE Investors Back on Uchumi Counter as Market Slows

NSE (Nairobi Securities Exchange) closed the week with mixed signals, reflecting both...