By: OrePulse

Kenya's state-run port authority plans to contribute about $60 million toward a first round of long-term private concessions covering port assets in Mombasa and Lamu, part of a program the National Treasury estimates will cost roughly $614 million in total.

Under the proposed arrangement, the Kenya Ports Authority (KPA) would keep ownership of the facilities while private operators take on equipment, staffing and additional capital under a landlord port model, the Public-Private Partnership (PPP) Committee said in August 2026. KPA's planned share works out to about one-tenth of the total projected cost, based on figures that convert local-currency amounts at roughly 130 Kenyan shillings to the dollar.

The first batch under consideration covers Mombasa berths 11 through 14, Mombasa Container Terminal 1, the Lamu Container Terminal and the Lamu Special Economic Zone, according to a listing published by Kenya's PPP Directorate. The program grew in April 2026, when the Treasury folded in seven additional KPA assets, lifting the total under consideration to 11. The additions include Mombasa Container Terminal II, the Mbaraki wharfs, unspecified cargo berths, and inland container depots at Embakasi, near Nairobi, and at Naivasha.

A market-engagement phase intended to gauge investor interest began in September 2026, ahead of formal bidding, according to the directorate's published materials.

The PPP Committee approved feasibility studies for the concessions on August 27, 2026. PPP Director General Kefa Seda said the approval pushed the assets forward into formal procurement. A further sign-off followed on October 16, 2026, when the Treasury endorsed the feasibility report a second time, a step the directorate said opened the door for KPA to invite bids.

In a landlord port model of the kind described for the concessions, the port authority typically keeps title to the land and core infrastructure while a private concessionaire leases operating rights for a fixed term, taking on responsibility for machinery, labor and day-to-day running of the terminal.

The PPP Directorate's listing describes a 30-year concession term to be awarded through open competitive tender, with Maritime and Transport Business Solutions named as transaction advisor. No private operator or bidder has been identified for any of the assets so far.

The same listing states that the project is currently on hold pending a court case, without identifying the case, specifying a monetary value, or indicating how a ruling might affect the timeline. No public date has been set for when KPA might open the tender process.

A separate cost estimate, drawn from an investment promotion catalog, put the value of the first phase at closer to $1 billion, a figure well above the $614 million total cited by the Treasury. It remains unclear whether the two estimates cover the same set of assets, and the gap between the figures has not been publicly addressed.

Under the model described by the PPP Committee, KPA would retain ownership of the port infrastructure even after concessions are awarded, with private firms expected to handle daily operations and new investment at the sites once an operator is selected.