Kenya has announced a plan worth approximately $1.2 billion to enhance its port operations in Mombasa and Lamu. This initiative is designed to allow private operators to enter some of the country's most important maritime assets.
Investment Program Details
According to statistics released by the National Treasury, the first package of concessions worth 79.69 billion Kenyan Shillings ($615 million) has been prepared. The Kenya Ports Authority (KPA) is expected to contribute 7.79 billion Kenyan Shillings ($60 million) alongside private investors to this package.
The second package, estimated to be worth around 80 billion Kenyan Shillings, is in preparation. This package will include additional container and general cargo terminals in Mombasa, as well as the Mubarak pier and inland container depots in Embakasi and Naivasha.
Changes in Port Ownership Model
This program represents a significant shift towards a port ownership model where the KPA retains ownership and legal oversight while private operators take on the financing of equipment, infrastructure improvements, and terminal operations.
In Mombasa, the reconstruction of berths 11 to 14 could increase the annual container capacity from about 300,000 TEU to 900,000 TEU. This will be made possible by dredging operations and rearranging the berths so that larger ships can call at the port. Additionally, the first three berths in Lamu have a combined design capacity of 1.2 million TEU.
So far, no concession awards have been announced, and this program is expected to be implemented in the near future.
