Port of Mombasa. Photo | courtesy.
The Kenyan government has given the green light to a plan to lease key port assets, including berths at Mombasa Port and Lamu Port, to private investors for a period of 30 years.
This move, aimed at boosting efficiency and investment in the country’s maritime sector, marks a shift in policy, with the National Treasury now supporting the Kenya Ports Authority’s (KPA) proposal after previously opposing a similar deal with Dubai Ports World.
The leasing plan is expected to inject significant private sector investment into the management and modernization of Kenya’s port infrastructure, a crucial gateway for regional trade.
Proponents argue that private sector involvement will enhance efficiency, reduce operational slowdown,and increase revenue generation.
ALSO READ: Explainer: 164 Companies Face Dissolution As Government Issues Deregistration Notice
KPA’s asset base has recorded consistent growth over the past six years, underscoring the ports’ strategic significance:
2022/23: Increased by Sh8.6 billion to Sh347 billion
2021/22: Increased by Sh34 billion to Sh338.4 billion
2020/21: Increased by Sh9 billion to Sh304 billion
2019/20: Increased by Sh7 billion to Sh295 billion
2018/19: Increased by Sh104 billion to Sh288 billion
2017/18: Stood at Sh184 billion
Despite the Treasury’s newfound support, the leasing plan is expected to face scrutiny from labor unions and industry stakeholders concerned about job security and private control over critical national assets.
The government has pledged a transparent and inclusive process to balance economic benefits with national interests.
