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The company continued operating for about
32 years until 1989 when it decided to pull out. It is then that the
Government of Kenya decided to take over the operations of the ferries.
The Government therefore bought all the
ferry crafts including Pwani, Mvita, St. Michael, Pombo and Mtongwe 1 at
a price of Ksh 10.5m. The staff was similarly retained at their existing
terms and conditions of service.
The government then asked Kenya Ports Authority to run the services on
its behalf. Kenya Ports Authority on their part changed one of its
subsidiary company's Bunty Estates Ltd to Kenya Ferry Services Ltd and
commenced operations on 1st November 1989.
In 1990 the government bought four new ferries namely Mv’s Nyayo,
Harambee, Kilindini and Mtongwe 2 at a cost of Shs 376 million to
supplement the existing fleet. Through financial assistance by way of
advances from Kenya Ports Authority and the Exchequer, the company was
able to sustain its operations during its infancy.
In 1998 the government formalized the ownership of the company through a
National Assembly Sessional Paper No.3 of the same year, by transforming
the contributions of both the government and Kenya Ports Authority into
equity. Share capital was thus increased from Shs.2 million to Shs 500
million. The company is now owned 80% by the government and 20% by Kenya
Ports Authority.
