Concession Step: Treasury Clears Kenya Ports Authority to Seek Bids for Mombasa and Lamu AssetsConcession Step: Treasury Clears Kenya Ports Authority to Seek Bids for Mombasa and Lamu Assets
Key Highlights
- The National Treasury has given a second approval to a feasibility report that lets the Kenya Ports Authority invite private bids for concessions on a batch of Mombasa and Lamu port assets.
- The first phase covers Mombasa berths 11 to 14, Mombasa Container Terminal 1 and the Lamu Container Terminal with its special economic zone, in a plan valued at about KSh 129.94B ($1B).
- Bid deadlines, concession lengths and revenue terms are still unpublished, and Mwenendo could not independently confirm the terms of the second Treasury approval.
The National Treasury has given a second approval to a feasibility report that lets the Kenya Ports Authority invite private bids for concessions on a batch of Mombasa and Lamu port assets, moving a roughly KSh 129.94B ($1B) investment plan closer to the market.
The approval, reported on 16 October, matters because it is the step that turns feasibility work into competitive procurement. Shippers, dockworkers and investors will want to know which assets are on offer, who will run them and how the terms are set.
Which assets are on the table
The first phase of the programme covers three transactions, according to the PPP Directorate. They are a concession for Mombasa berths 11 to 14, a separate concession for Mombasa Container Terminal 1, and an integrated deal combining the Lamu Container Terminal with the adjacent Lamu Special Economic Zone.
The Public-Private Partnership Committee approved the feasibility studies in late August, and the PPP Directorate said the approval moved the assets from feasibility into the procurement stage under the PPP framework.
The Phase 1 package is valued at about KSh 129.94B ($1B) in private investment, including roughly KSh 38.98B ($300M) for the Mombasa berths, according to a regional industry report. Mwenendo has not seen a Treasury statement on the second approval and could not independently confirm its terms.
What the project documents describe
Transaction documents from the Kenya Ports Authority, as reported, describe berths 11 to 14 as a 720 metre facility to be realigned and dredged from 10.25 metres to 15 metres, lifting yard capacity from about 300,000 to 900,000 twenty-foot equivalent units a year. Container Terminal 1 has 840 metres of quay and a capacity of 962,000 units today.
At Lamu, the first three berths offer 1.2 kilometres of quay and a design capacity of 1.2 million units. The authority envisages a private operator taking full responsibility for terminal handling there.
The landlord model and the open questions
Under the landlord model the authority keeps ownership of port land and infrastructure and strategic oversight, while private operators bring capital, equipment and operating expertise. Awards are to be made through competitive bidding, and the authority is the contracting body.
Several details are still unpublished: bid deadlines, concession lengths and revenue terms. Mwenendo earlier reported on how Ruto signed a law adding the port authority chief to the KRA board, and the Lamu side of the plan sits alongside a land dispute over the planned Dangote refinery in the same county.
Bidders will look for bid deadlines and concession terms before committing capital.
In Summary
- Who gave the approval?
- The National Treasury, which has given a second approval to the feasibility report for the Kenya Ports Authority.
- What does it allow?
- It lets the Kenya Ports Authority invite private bids for concessions on a batch of Mombasa and Lamu port assets.
- When was it reported?
- 16 October 2026; the PPP Committee approved the feasibility studies in late August.
- Which assets are involved?
- Mombasa berths 11 to 14, Mombasa Container Terminal 1, and the Lamu Container Terminal with the Lamu Special Economic Zone.
- Why does it matter?
- It moves the plan, valued at about KSh 129.94B ($1B) in private investment, from feasibility into competitive procurement.
- How will the ports be run?
- Under a landlord model, the authority keeps ownership and oversight while private operators bring capital and equipment.