Kenya Ports Authority Lost About US$1.5 Million in Container Handler Deal, Court Told
Kenya · BUSINESS
Key Facts
- —What happened Kenya Ports Authority paid Sh195 million (about US$1.5 million) for five Kalmar empty container handlers that were allegedly diverted to Tanzania instead of being delivered to Mombasa.
- —The catch The machines were expected in March 2025, allegedly diverted in October 2025, and later returned to Kenya and held at Port Police Station.
- —Who it hits KPA has sued Kalmar and Power Parts (Kenya) seeking a refund of the Sh195 million (about US$1.5 million) paid for the equipment.
- —The legal step A Mombasa High Court issued interim orders on 16 September 2026 halting criminal investigations and enforcement action against Power Parts.
- —What comes next The matter was set for hearing on 5 October 2026 before the Mombasa High Court.
- —Why it matters The dispute highlights scrutiny of Kenyan state procurement and port efficiency as regional cargo competition intensifies.
The KPA container handler deal has left Kenya Ports Authority seeking a Sh195 million (about US$1.5 million) refund after five machines were allegedly diverted to Tanzania instead of reaching Mombasa.
Kenya Ports Authority (KPA) paid Sh195 million (about US$1.5 million) for five Kalmar empty container handlers that were allegedly diverted and sold to a port in Tanzania instead of being delivered to Mombasa, court filings show. KPA has sued Kalmar and Power Parts (Kenya) seeking a refund.
The Sh195 million (about US$1.5 million) KPA container handler deal
The dispute centres on a procurement contract for five Kalmar empty container handlers, specialised machines used to move empty shipping containers around port yards. Court filings say KPA expected the equipment to arrive in March 2025.
The machines were allegedly diverted in October 2025 and sold to a port in Tanzania, according to the filings. They were later returned to Kenya and are now held at Port Police Station in Mombasa.
KPA has moved to recover the Sh195 million (about US$1.5 million) it paid for the equipment. The authority has sued both Kalmar, the equipment manufacturer, and Power Parts (Kenya), the local supplier, seeking a refund.
Court halts criminal probe into Power Parts
A Mombasa High Court issued interim orders on 16 September 2026 halting criminal investigations and enforcement action against Power Parts in the dispute. The court set the matter for hearing on 5 October 2026.
The interim orders mean the Directorate of Criminal Investigations cannot proceed with its probe into Power Parts while the civil case is pending. The court will determine whether the halt should continue at the October hearing.
The legal tussle puts the criminal and civil tracks of the same dispute on a collision course. KPA wants its money back, while Power Parts has secured temporary protection from criminal enforcement.
Mombasa port at the centre of regional cargo competition
The alleged diversion to Tanzania lands in the middle of a fierce East African logistics contest. The Port of Mombasa has long been the region’s dominant gateway, but Dar es Salaam has been investing heavily to capture more transit cargo.
Container handling equipment is a sensitive asset in that competition. Faster turnaround times and reliable equipment determine whether shipping lines and cargo owners route freight through Kenya or Tanzania.
The case underscores how state procurement and port efficiency have become politically sensitive as regional trade grows. Customs control and maritime equipment contracts now draw scrutiny from investigators, courts and competitors alike.
State procurement scrutiny widens
The KPA dispute is not an isolated procurement headache for Kenyan state agencies. It sits inside a broader pattern of questions about how public bodies buy maritime and logistics equipment.
Court filings in this case reveal the tension between pursuing criminal accountability and protecting commercial relationships. Power Parts has argued, through its court application, that the criminal probe should not run ahead of the civil dispute.
For investors and contractors doing business with Kenyan state agencies, the case is a reminder that procurement disputes can quickly escalate into criminal investigations. The interim court orders show that courts are willing to intervene early to set the rules of engagement.
The great-power and South-South angle
East African port competition is not only a regional story. Global shipping lines, Chinese-built infrastructure and development finance all flow through Mombasa and Dar es Salaam, linking the dispute to wider contests over trade corridors.
The alleged diversion of equipment from Kenya to Tanzania touches the same nerves as debates over who controls the region’s logistics backbone. Read more about this dynamic in Africa: The New Scramble.
For Brazil and other South-South trade partners, East African port reliability affects the cost and speed of moving goods between the Atlantic and Indian Ocean economies. Procurement failures at Mombasa ripple far beyond Kenya’s borders.
What to watch next
The Mombasa High Court hearing set for 5 October 2026 will determine whether the interim orders protecting Power Parts from criminal investigation remain in place. That decision will shape how the refund claim and any criminal case proceed.
KPA will need to show that the equipment was never delivered as contracted and that the Sh195 million (about US$1.5 million) payment should be returned. Kalmar and Power Parts will have their own account of what happened between March and October 2025.
The case could also push Kenyan authorities to tighten oversight of port equipment contracts. Any new procurement rules would affect suppliers, logistics firms and shipping lines operating across East Africa.
Frequently Asked Questions
How much did Kenya Ports Authority lose in the container handler deal?
KPA paid Sh195 million (about US$1.5 million) for five Kalmar empty container handlers that were allegedly diverted to Tanzania instead of being delivered to Mombasa.
Who has KPA sued over the Sh195 million (about US$1.5 million) container handler deal?
KPA has sued Kalmar and Power Parts (Kenya) seeking a refund of the Sh195 million (about US$1.5 million) paid for the equipment.
When is the next court hearing in the KPA container handler dispute?
The Mombasa High Court set the matter for hearing on 5 October 2026 after issuing interim orders on 16 September 2026.
Connected Coverage
Sources
This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error
LatAm Markets: Live Signals → — real-time movers, turnover leaders and FX across Latin America.
Read More from The Rio Times