The Kenyan Treasury has reignited plans to lease key port assets managed by the Kenya Ports Authority (KPA), marking a significant policy shift after previously rejecting a similar proposal from Dubai-based logistics giant DP World.
The government is now proposing to hand over critical facilities, including the Lamu Port Container Terminal and several berths at Mombasa Port, to private investors under a 30-year concession agreement.
The move echoes a 2022 initiative when the Treasury invited DP World to submit a commercial proposal for managing multiple port projects, only to later backtrack amid public and political opposition.
This time, KPA officials have pitched the leasing plan as a strategic effort to boost efficiency and revenue at the country’s underperforming maritime infrastructure, much of which was developed through costly loans.
Sources within the Treasury indicate that the decision stems from mounting pressure to address the financial strain of these multibillion-shilling assets, including the Lamu Port, which has struggled to attract significant traffic since its completion.
Mombasa Port, a regional trade hub, has also faced challenges with ageing infrastructure and operational inefficiencies, prompting calls for private sector involvement.
Under the proposed arrangement, private operators would take over the management and development of the designated facilities to modernise operations and increase throughput.
KPA Managing Director, Captain William Ruto, defended the plan, stating, “Leasing these assets will unlock their potential and reduce the burden on public finances while ensuring Kenya remains competitive in the region.”
The Treasury’s about-face has raised eyebrows, given its earlier resistance to DP World’s overtures, which critics had labelled as a “sell-off” of national assets.
Observers suggest the shift reflects a pragmatic response to Kenya’s fiscal challenges, including a ballooning debt portfolio tied to infrastructure projects.
The government has yet to disclose potential bidders, though DP World is widely expected to re-enter the fray.
Port workers’ unions have expressed cautious concern, warning of potential job losses and demanding guarantees from the government.
“We support efficiency, but not at the expense of Kenyan livelihoods,” said a representative of the Dock Workers Union.
