President William Ruto’s administration plans to lease the management and operations of five key ports. This is to be done through a zealous Ksh1.4 trillion Public-Private Partnership (PPP) with the purpose of reviving the country’s maritime economy.
According to the Kenya Development Corporation (KDC) which is a development finance institution, President Ruto’s administration is on the search for private players who will run parts of Dongo Kundu Port, Kilindini Harbor, Kisumu Port, Shimoni Fisheries Port and Lamu Port, a move meant to intensify competition in the northern corridor.
“The ports are confronted with the challenge of congestion and therefore dwell times for cargo. The ports will be leased to private operators with landlord-type port management system,” stated the KDC to potential investors.
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Rwanda, Burundi and Uganda which are landlocked countries have in the recent times chosen to use the Tanzania route over the Kenyan one. This has caused a notable competition between the two countries.
In an attempt to win over the landlocked countries by ensuring fast shipping, the two countries have made efforts to construct new ports like the Lamu Port in Kenya and the Bagamoyo Port in Tanzania. Additionally, they have made efforts to improve on the already existing ones. Tanzania has recently allocated approximately Ksh42 billion to facilitate the development of Ports in its budget.
Mombasa Port’s cargo handling volume had a drop for the first time in five years due to the fierce competition from Dar es Salaam according to official data. The number of goods transiting through the port decreased from 34.76 million metric tonnes the previous year to 33.74 million metric tonnes last year.
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The Lapsset Corridor Development Authority and the Kenya Ports Authority (KPA) have been given the authority to conduct the proposed lease.
