KPA boss clarifies Govt position on Mombasa, Lamu Port privatization

Speaking during a government podcast dubbed Sema Na Spox – Bonga Na Gava, Capt. Ruto said the ongoing reforms are aimed at attracting private investment rather than transferring ownership of the ports.

He explained that the government does not intend to sell port land or infrastructure, but instead plans to lease certain operations to private sector players.

“KPA has conducted feasibility studies on its port assets to determine their value and identify areas where private sector participation can support infrastructure expansion and operational efficiency,” said Capt. Ruto.

“Under the proposed landlord port model, the government will retain ownership of port land and infrastructure while leasing certain operations to private operators under clearly defined agreements,” he added.

According to Ruto, the approach will allow the port to benefit from private investment, improved performance and increased cargo throughput, while ensuring that all port assets remain under government ownership.

During the podcast, the managing director also noted that the Port of Mombasa is currently experiencing pressure due to increased container traffic. Container volumes have grown significantly, rising from 1 million Twenty-foot Equivalent Units (TEUs) in 2014 to 2.1 million TEUs last year.

Ruto said the growth had been gradual for several years, reaching 1.45 million TEUs by 2022, an increase of about 400,000 TEUs over eight years.

“Performance accelerated after 2023, when volumes rose to 1.6 million TEUs, representing an 11.6 per cent growth. By 2024, the port had surpassed the 2 million TEU mark, adding about 600,000 TEUs within two years,” he explained.

He noted that the increase in cargo volumes has created capacity pressure, as the port’s current capacity stands at about 2.2 million TEUs, which is close to the current volumes being handled.

Despite the pressure, Ruto said demand from regional transit markets remains strong, reaffirming Mombasa’s position as a key gateway to East and Central Africa.

Ruto also noted that the Port of Lamu, whose construction was completed in 2021, has started receiving a growing number of vessels following intensified marketing efforts.

On operations, the KPA boss said the Port of Mombasa has fully automated its services, eliminated manual payments and significantly reduced physical interactions in service delivery.

“All payments for port services are now processed through digital platforms such as eCitizen and bank transfers, with international shipping lines wiring payments directly from overseas,” he said.