Kenya has opened a $1.17 billion investment programme covering major facilities at the ports of Mombasa and Lamu to private investors, as the government seeks additional funding to expand port capacity and improve cargo-handling operations.
The programme, valued at approximately 151.9 billion Kenyan shillings, will be implemented in two phases under public-private partnership arrangements.
The Kenya Ports Authority (KPA), the state-owned port operator, will contribute $60 million towards the first phase, with private investors expected to provide most of the remaining capital.
The first phase covers four assets: Mombasa port berths 11–14, Mombasa Container Terminal I, Lamu Container Terminal berths 1–3 and the Lamu Special Economic Zone.
A second phase will include additional cargo terminals, wharves and inland container depots in Nairobi and Naivasha.
Under the proposed arrangement, the government will retain ownership of the underlying infrastructure while private operators finance, develop and manage the facilities under concession agreements.
Investors are expected to recover their investments through port operations and user charges, while paying concession fees to KPA.
The investment drive is intended to increase cargo-handling capacity, improve operational efficiency and strengthen Kenya’s position as a regional trade gateway.
Mombasa serves Kenya and several landlocked East African economies, while Lamu is being developed as an additional maritime and logistics corridor.
However, questions remain over how KPA will finance its $60 million contribution and the terms that will govern the concessions.
The success of the programme will depend on investor participation, operational improvements and the cost of services to businesses using the ports.
The proposed concessions represent a significant effort to attract private capital into Kenya’s transport infrastructure while maintaining public ownership of strategic port assets.
