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Kenya Progresses With a Port Concession Plan Worth $1 Billion

Lamu
Construction under way on Kenya's Lamu Port complex (file image)

By The Maritime Executive 2026-11-01 15:47:02

Kenya is set to lease out key port assets after its National Treasury approved a feasibility study on the privatization plan. For over a decade now, the East African nation has been considering port privatization to improve efficiency and maintain regional competitiveness in logistics. The approved concession plan is expected to attract about $1.2 billion in private sector investments.

The concession is scheduled in phases, each covering different assets in Mombasa and Lamu ports. The first batch of assets to be tendered include Mombasa port berths 11-14, Mombasa Port Container Terminal 1, Lamu container terminal berths 1-3 and the Lamu Special Economic Zone (SEZ). These assets are estimated to require an investment of over $610 million, with the Kenya Ports Authority (KPA) adding $60 million in co-investment under a public-private-partnership (PPP) model.

The second batch of assets will include Mombasa Container Terminal II (berths 20-22), Mombasa Container terminal berths 23-24 (an ongoing expansion), cargo terminal berths 1-5 and 7-10, Mbaraki Wharf and the Embakasi and the Naivasha inland container depots. These assets are expected to attract investments worth over $620 million.

With this green light, KPA is now set to open the bidding process for interested operators. In addition, the National Treasury disclosed that a recruitment process has begun for an advisor to guide the planned concessions.

The privatization plans come at a time when Mombasa port has been operating at almost its full capacity, following rising cargo volumes in the past five years. Last year, the port handled a record 2.11 million TEU, a five percent growth from the previous year's volume. To keep up, KPA has unveiled a berth expansion plan worth $150 million, plus port development in the adjacent 3,000-acre Dongo Kundu SEZ estimated at $320 million. In addition, there are ongoing road infrastructure projects to improve connectivity between port terminals. The success of some of these projects hinges on partnerships with the private sector.

On the sidelines of a trade summit in May, the French ocean carrier CMA CGM pledged $820 million in Mombasa port modernization. The investment would target the two container terminals. This positioned CMA CGM as a potential bidder in the planned port privatization. Last month, DP World and Kenya-based GulfCap Africa also advanced plans to establish Mombasa Industrial Park, a 222-hectare SEZ near Mombasa port.

Meanwhile, the development of the $16 billion Dangote Refinery in Lamu is seen as a major boost for Kenya’s second seaport. With the ongoing war in the Middle East, the port is already seeing increased vessel calls. Last year, the port handled a total of 155 ships and is on course to surpass this number by a significant margin this year. According to KPA data, Lamu Port handled over 120 vessels by mid-May 2026. Since 2024, the port has also seen cargo volumes rise by over 900 percent, averaging about 800,000 tons last year.