KPA moves to recover Sh43.6m port debt linked to ex-county boss
Crime and Justice
By
David Odongo
| Jun 27, 2026
The Kenya Ports Authority (KPA) has intensified efforts to recover more than Sh43.6 million in unpaid rental and cargo charges from a company linked to former Mombasa County Executive Committee (CEC) member.
Documents seen by The Standard show that KPA has engaged a debt collection agent and initiated legal proceedings to recover Sh43,590,157.47 allegedly owed by Somtrade Limited, with the debt dating back to 2023.
In a formal demand notice, KPA warned the company that enforcement measures, including the freezing of its accounts, would be implemented if the outstanding amount remained unpaid.
“Kindly note that this notice has been served without prejudice and that once your accounts are blocked, they will be unblocked if and only if the existing outstanding balances are paid in full,” part of the notice states.
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According to the documents, the outstanding amount comprises Sh25,142,410 in rental lease arrears under Account No. 411200 and Sh18,447,747.47 in cargo charges under Account No. 103011.
The debt has drawn political attention because company records list former Mombasa County Executive Committee Member for Trade Mohamed Ibrahim Abdi and Nominated Mombasa MCA Naeem Shafiq Mohamed among the firm’s directors. Naeem Shafiq Mohamed, who is listed in company records as the largest shareholder with 30 shares, is also known as a close associate of Nyali MP Mohamed Ali.
Other shareholders include Ibrahim Bagajo Karayu and Mohamed Ibrahim Abdi, with 25 shares each, while Suleiman Ibrahim Surrow holds 20 shares.
Payment plan
According to KPA correspondence dated June 10, 2026, the authority rejected Somtrade Limited’s request for a structured payment plan, maintaining that its operations are conducted strictly on a cash basis.
“This has reference to your letters dated March 9, 2026 (Cargo A/C) and 4th May 2026 (Rental/Lease A/C) proposing payment plans for the long-outstanding debts,” the letter reads.
“As you are aware, Kenya Ports Authority operates on a cash basis; there are no credit facilities for the services offered by KPA. This therefore means that the above debts are in contradiction of policy, in addition to falling under the category of uncollectable debts due to the prolonged period.”
KPA subsequently directed the company to clear the outstanding amount within seven days or face legal recovery measures.
Separate correspondence shows that Somtrade Limited later appealed for additional time to settle the debt. In a letter signed by director Mohamed Ibrahim Abdi, the company proposed paying the remaining balance in five installments after being granted a two-month grace period.
“With the above plan, we will clear all pending charges as per the current situation. Therefore, we respectfully request a grace period of two months to settle the remaining balance in five installments. We are confident that, with your understanding and cooperation, we will fulfil our financial obligations within this time frame,” the letter states.
The lease agreement shows that the company was granted the use of Shade 2 on Title Number Mombasa/Block/1/492 for a period of five years and three months.