Roads and Transport Cabinet Secretary Kipchumba Murkomen has defended the proposal to lease sections of Mombasa and Lamu ports to private entities.
In submissions to the National Assembly’s Departmental Committee on Transport and Infrastructure, Murkomen said the injection of private capital into port development will reduce the burden of government funding on capital projects.
He said the private party will be expected to invest in the rehabilitation, and equipping of Berths 11-14 and Container Terminal 1 and operate them for a specified period.
He added that they will also undertake the development of the Special Economic Zone infrastructure.
“This will free up government resources for other developmental purposes,” he said.
The CS added that the move will eliminate congestion of the port of Mombasa, which serves Kenya and the other landlocked countries namely; Uganda, Rwanda, Burundi and South Sudan.
Murkomen said the port of Lamu will also open up the LAPSSET Corridor and serve Ethiopia, South Sudan and Western Somalia.
He further added that the involvement of the private sector in cargo handling activities will enable quick decision-making by eradicating bureaucracy.
“Additionally, the Kenya Ports Authority National Ports Master plan 2018-2047 envisages that Lamu port will be operated principally as a landlord port,” he said.
Kenya Ports Authority has said it wants to lease parts of key ports to generate at least US$10 billion annually by 2030.
KPA is seeking private investors to take over the operations and management of five critical port facilities–Mombasa and Lamu ports, Dongo Kundu Special Economic Zones, Kisumu Port, and Shimoni Fisheries Port through a public-private partnership.
KPA has already begun the process of leasing nine assets, which include the Lamu Container Terminal berth 1-3, Lamu Special Economic Zone, Mombasa Port’s berth 11-14 and Mombasa Port Container Terminal 1.
Kenya’s trade route has recently come under intense competition with the landlocked countries of Uganda, Burundi and Rwanda preferring to use the Tanzanian route which has seen total cargo passing through Mombasa, drop to 33.74 million metric tonnes in 2022 from 34.76 million tonnes in 2021.
Tanzania has been giving Kenya stiff competition in building trade with their landlocked East African neighbours, as business people in the region complain about deficiencies with Kenya’s port at Mombasa.