The Kenya Ports Authority (KPA) is seeking to recover KSh195 million paid for five container handling machinesthat were allegedly diverted from Mombasa Port and sold elsewhere despite the authority having paid for their supply.
Court documents show that KPA purchased five Kalmar empty container handlers from Power Parts (Kenya) Limited and equipment manufacturer Kalmar for delivery to Mombasa Port in 2025. KPA alleges the machines were instead diverted to a port in Tanzania.
The authority has filed separate civil proceedings seeking a refund of the KSh195 million it paid for the equipment.
The Directorate of Criminal Investigations also opened investigations after KPA reported the matter, although the High Court in Mombasa has temporarily suspended criminal investigations and enforcement action against Power Parts pending further court proceedings.
Court Halts Investigations Pending Hearing
Justice Wendy Kagendo Micheni issued interim conservatory orders preventing the DCI from arresting, summoning, detaining, charging or prosecuting the company and its officials in relation to the complaint.
The orders are temporary and do not determine the allegations against Power Parts or Kalmar. The application is scheduled to return to court on October 5.
According to court records, the five machines had been expected to be supplied to KPA in March 2025. Investigators are examining allegations that they were subsequently diverted outside Kenya in October.
Two of the machines have since been returned to Kenya and are being held at the Port Police Station in Mombasa, while questions remain over the whereabouts of the other equipment.
The dispute places scrutiny on procurement and contract management at one of Kenya’s most important State corporations.
Container handling equipment is critical to port operations, where efficiency in moving cargo directly affects vessel turnaround times, logistics costs and the competitiveness of the Port of Mombasa.
KPA’s immediate focus is now on recovering the money through the civil case while the separate legal dispute over the criminal investigation proceeds.
The court has yet to determine whether any fraud or wrongdoing occurred.
