The Dock Workers’ Union and human rights organisation Muslims for Human Rights on Thursday will challenge in court the amended Merchant Shipping Act.
The law which was passed by Parliament last Tuesday and assented by President Uhuru Kenyatta on Friday, allows a private Mediterranean Shipping Company (MSC) to run Container Terminal 2 (CT2) at Mombasa port.
MSC holds 43 per cent shares at the Kenya National Shipping Line that the Act has allowed operating the terminal.
The government through the Kenya Ports Authority control others shares.
4,000 jobs loss
While addressing journalists in Mombasa on Tuesday, MUHURI and DWU avers that at least 4,000 workers will be laid off in the process.
They said the terminal’s Sh 10 billion profit will end up in private hands.
On Monday, Uhuru hit at Coast MPs opposed to the privatisation. Uhuru said 2,000 jobs will instead be created.
The union Secretary general Simon Sang’ said privatisation was clouded in mischief.
Sang’ said port performance can improve without private sector input.
MUHURI Rapid response Officer Francis Auma said there was no adequate public participation.
He said the government in 2014 advertised to bids but later canceled the process under unclear circumstances.
There are reports government officials have bought shares at MSC to strategically gain from the operation of Container two terminal.
There are also fears that the Act is vague and can allow the 53 per cent stake the government is holding to be handed to MSC.