Kenya has moved significantly closer to handing over the management of some of its most critical port assets to private operators. The government’s Public-Private Partnership Committee has given the green light to feasibility studies for major facilities at the Ports of Mombasa and Lamu, clearing the path for these strategic developments to move forward into the next stage.
The approval, which was confirmed on Thursday, August 27, covers four key assets. These include Mombasa Berths 11 to 14, the Mombasa Container Terminal 1, the Lamu Container Terminal, and the Lamu Special Economic Zone. With this approval now in place, these projects can proceed directly to the procurement stage, marking a significant milestone in Kenya’s efforts to modernise its port infrastructure through private investment.
The government’s plan represents a shift towards what is known as the landlord-port model. Under this arrangement, private investors will step in to provide capital, technical knowledge, and operational expertise to run the facilities. However, the Kenya Ports Authority will retain ownership of the assets and maintain strategic oversight over operations. This approach is designed to combine the efficiency that private operators bring with the public interest protection that government oversight provides.
According to PPP Director General Kefa Seda, the transactions are aimed at multiple objectives. The developments are intended to strengthen the capacity of Kenya’s ports, improve the country’s standing in logistics and global competitiveness, and attract long-term private capital investment. Seda emphasised that the procurement process will be conducted transparently, with full public disclosures and engagement with all relevant stakeholders in line with Kenya’s established PPP legal framework.
During the initial phase, the government intends to pursue three separate transactions. The first involves granting concessions for Mombasa Berths 11 to 14 and Container Terminal 1. The second is an integrated concession that covers both the Lamu Container Terminal and the Lamu Special Economic Zone. This phased approach reflects careful planning to ensure each development receives appropriate attention and resources.
These port initiatives do not stand alone. They are part of a broader government strategy to develop major transport infrastructure projects through private sector participation. The flagship Nairobi-Mombasa Road PPP exemplifies this approach. In August, the Kenya National Highways Authority began the process of recruiting a consultant to conduct feasibility studies for this massive 461-kilometre highway project and to provide advisory services for the transaction. The government plans to eventually expand this road into a minimum four-lane dual carriageway, representing one of Kenya’s most ambitious infrastructure investments.
The timeline for moving forward is already taking shape. Market engagement for the port transactions is expected to commence in September 2026, meaning potential investors will soon have the opportunity to express interest and learn more about these opportunities. This represents a crucial moment for Kenya as it seeks to attract quality private investment into essential economic infrastructure.
For Kenya’s economy, the significance of this development cannot be overstated. Ports are the lifeline through which the country trades with the world. Improving their efficiency and capacity directly impacts export competitiveness and the cost of imports for both businesses and consumers. By bringing in private expertise and capital, Kenya aims to position itself as a more attractive trade hub in the East African region.
The phased approach being taken also suggests that the government is learning from experience and taking a cautious path forward. Rather than attempting to privatise everything at once, the strategy allows for careful implementation and adjustment as lessons are learned from the initial transactions.
As Kenya moves into this new chapter of port development, all eyes will be on how the government executes these plans. The success of these initiatives could serve as a model for other African nations seeking to modernise their infrastructure while maintaining public interest protection.
