Kenya has started a project to lease the Mombasa and Lamu ports in a move to revive the maritime industry. This initiative, seeks to generate a minimum of $10 billion (Sh1.5 trillion) in annual revenue by 2030.
The project will boost competitiveness of the Northern Corridor.
According to the East African, Kenya initiated a bidding process to lease sections of the ports to private operators. This is a shift towards a landlord-type port management system as the government commits to improving their efficiency and capacity.
The government is actively seeking private investors to take up operations and management of five strategically important port facilities. These facilities also include the Dongo Kundu Special Economic Zones, the Kisumu Port, and the Shimoni Fisheries Port. The government intends to facilitate these lease agreements through public-private partnerships (PPPs).
Ruto’s Take
Speaking on the initiative, President William Ruto expressed optimism about its transformative potential. He said that the move will elevate the ports, which have historically grappled with congestion, to world-class standards.
The Kenya Ports Authority (KPA) has already initiated the leasing process for nine key assets. The government expects interested parties to submit their applications by October 12. Among the assets included in the leasing process are the Lamu Container Terminal berths 1-3, the Lamu Special Economic Zone, Mombasa Port’s berths 11-14, and Mombasa Port’s Container Terminal 1.
KPA officials have clarified that these projects are integral components of the authority’s comprehensive 25-year port master plan. The leasing initiative seeks to enhance the operational efficiency and also attract significant private sector investment.
However, in the past, people have raised concerns regarding private firms’ involvement in operating KPA facilities. Critics argue that such arrangements could potentially impact KPA’s revenues due to confidentiality surrounding the lease agreements.
The government will need to navigate these concerns as it moves with its ambitious plans to transform the maritime sector.
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