To finance the expansion of the ports of Mombasa and Lamu, Kenya is relying on diversification of financing.

Kenya is seeking to attract private investors to develop its strategic ports in Mombasa and Lamu. The country plans to rely on public-private partnerships (PPPs) and the issuance of long-term bonds. These funds, raised from pension funds and insurers, will finance new berths in Mombasa and container terminals in Lamu. This approach is necessary because the financially weakened Kenya Ports Authority cannot undertake these investments alone.

This strategy is part of a broader policy of relying on private sector infrastructure. The same pattern is being applied to highways, airports, and rail. The goal is to strengthen the competitiveness of Kenyan ports against regional rivals, particularly the Tanzanian port of Dar es Salaam, supported by DP World. The latter aims to attract more traffic to Uganda, Rwanda, Burundi, and the DRC.

Despite a decline in activity in 2021 and 2022, partly due to competition from Dar es Salaam, Mombasa remains a major maritime hub in East Africa, handling 41,1 million tonnes of cargo in 2024 and 2 million TEUs. Lamu, intended to serve Ethiopia, must compete with the port of Djibouti, which dominates the region.

In comparison, Dar es Salaam handled 18 million tonnes of cargo in 2023/24 and 820000 TEUs in 2023. To maintain its lead, Kenya is banking on these port expansions, which are crucial to maintaining its key role in East African trade.