The Kenya Ports Authority (KPA) is currently leasing nine assets, and interested parties have until October 12 to submit their offers. These include the Lamu Special Economic Zone, berths 11–14 of the Mombasa Port, the first container terminal at the Mombasa Port, and berths 1-3 of the Lamu Container Terminal.
KPA representatives claim that the upgrades are being made in compliance with the authority’s 25-year port master plan.
Players have previously expressed worries about KPA facilities being managed by privately held businesses, arguing that KPA’s financial line may suffer from the lease agreement’s lack of transparency.
However, different port stakeholders have responded to the decision in different ways. Some have questioned the process because the parastatal is the only government entity that generates revenue. Over the prior fiscal year, KPA’s earnings exceeded $15 million.
“Considering that prior government agencies that were privatized have never recovered, we are waiting to see the miracle behind it. However, it will increase efficiency if properly handled, according to Gilbert Langat, CEO of the Shippers Council of Eastern Africa.
For a possible investment in the Lamu Port, Kenya has previously courted multinational logistic corporations from Saudi Arabia and Dubai. However, it is unclear what private enterprises would do to make Mombasa Port more dynamic.
Following the completion of the agreements, DP World might be allowed to operate out of many of Kenya’s major ports, such as Mombasa, Lamu, and Kisumu.
The landlocked countries of Rwanda, Burundi, and Uganda favor using the Tanzanian route, fiercely competing with Kenya’s commercial route. Consequently, the total amount of cargo passing through Mombasa fell from 34.76 million metric tons in 2021 to 33.74 million metric tons in 2022.
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