Kenya Advances Port Modernization as Mombasa and Lamu Assets Enter PPP Procurement

The Public-Private Partnership Committee has approved feasibility studies for several major port infrastructure projects located in Mombasa and Lamu, marking a definitive step forward in the country's national investment roadmap. According to a statement issued on Thursday, August 27, by Kefa Seda, Director General of the Directorate of Public-Private Partnerships, the approved projects cover Mombasa Berths 11 through 14, Mombasa Container Terminal 1, the Lamu Container Terminal, and the Lamu Special Economic Zone. This critical regulatory clearance effectively clears the path for these strategic assets to move out of the preliminary study phase and directly into active procurement.

This institutional shift underpins a broader strategic objective to progressively transition the Ports of Mombasa and Lamu toward a landlord-port model. Under this structural design, private investors are expected to inject substantial private sector capital, technical expertise, and operational capacity into the facilities. Meanwhile, the Kenya Ports Authority will retain public ownership and maintain strict strategic oversight of all underlying port assets. Phase 1 of this ambitious initiative is structured around three distinct transactions, creating separate concessions for Mombasa Berths 11 to 14 and Container Terminal 1, alongside an integrated concession combining the Lamu Container Terminal with the Lamu Special Economic Zone.

Following these approvals, the Kenya Ports Authority is positioned to advance the Phase 1 transactions directly into competitive procurement. Market engagement with potential investors is scheduled to formally commence in September 2026. Simultaneously, feasibility work concerning a second phase of port assets is already underway, sustaining the operational momentum toward a much wider pipeline of bankable port infrastructure opportunities. Director General Kefa Seda noted that the entire procurement process will proceed in strict accordance with national legislation, featuring mandatory public disclosures and structured consultations with stakeholders as required under Kenya’s public-private partnership legal framework.

Why This Matters

Shifting core maritime gateways toward a landlord-port model introduces a new operational dynamic for East African trade corridors. By delegating terminal management and expansion capital to private entities while retaining ultimate asset ownership, public authorities can mitigate immediate fiscal pressures while accelerating infrastructure modernization. This dual-track approach allows port management to leverage specialized technical expertise that improves turnaround times and operational efficiency, directly impacting regional supply chain velocity and trade competitiveness across the wider hinterland.

Furthermore, structuring these projects under a regulated procurement framework provides legal certainty and transparency for international and domestic capital allocators. Public disclosures and stakeholder engagements mandated by national laws help align operational scaling with regulatory compliance, reducing friction between investors, port authorities, and local communities. As feasibility work expands into secondary phases, the sustained pipeline of bankable opportunities establishes a predictable framework for long-term capital deployment in regional logistics infrastructure.

Opportunities

• Operators: Global and regional terminal management firms can bid for individual concessions at Mombasa Berths 11-14 and Container Terminal 1, or pursue the integrated Lamu Container Terminal and Special Economic Zone package.
• Financiers: Commercial banks, institutional funds, and development finance institutions have a clear runway to structure debt and equity packages for bankable port infrastructure projects starting in September 2026.
• Contractors: Engineering, procurement, and construction firms can position themselves to deliver civil works and technological upgrades tied to the expansion and modernization of both the Mombasa and Lamu facilities.

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