KENYA · BUSINESS
Key Facts
- —What is happening Kenya plans to hand a first batch of Mombasa and Lamu port assets to private investors under concession deals, and Kenya Ports Authority will co-invest about US$60 million (Sh7.79 billion), disclosed on Friday 23 October 2026.
- —Why it matters Mombasa is East Africa’s main container gateway, so who runs its berths and terminals affects shipping costs and trade routes into Kenya, Uganda and other inland markets.
- —The numbers The estimated total cost is Sh79.69 billion (about US$614 million), and the Kenya Ports Authority share of Sh7.79 billion (about US$60 million) is roughly 10% of it.
- —Who is who Kenya Ports Authority is the state-owned body that runs Kenya’s ports, while the National Treasury and its public-private partnership directorate lead the concession programme.
- —What to watch Whether the tenders open soon, because a 30 year term is planned and a court case has put the project on hold.
- —What it means for you US exporters and shipping lines that use Mombasa for East Africa cargo could face new terminal operators and fees later, but no bidder has been named.
Kenya plans to hand a first batch of Mombasa and Lamu port assets to private investors. The state port authority will add about US$60 million.
The Kenya Ports Authority will co-invest Sh7.79 billion (about US$60 million) in concession deals for the first Mombasa and Lamu port assets. Business Daily, a Nairobi newspaper, published both figures on Friday 23 October 2026, citing the National Treasury for the total.
The National Treasury puts the estimated total cost of those deals at Sh79.69 billion (about US$614 million). A concession is a long lease in which a private company runs a public asset and invests in it.
Mombasa is the main sea gateway for Kenya and much of East Africa, so the outcome matters beyond Kenya. Conversions here use the rate of 24 October 2026, about 130 shillings per US$.
What the Kenya Ports Authority Co-Investment Covers
The Kenya Ports Authority, or KPA, is the state-owned corporation that runs Kenya’s seaports. Its Sh7.79 billion (about US$60 million) is about 10% of the Sh79.69 billion (about US$614 million) total.
Business Daily’s page loaded only in part for this report, so the exact split of the money is not confirmed. No private investor, bidder or partner has been named in any source reviewed.
Which Port Assets Are on the Table
The first phase covers four assets, according to Kenyans.co.ke and the PPP Directorate’s own project listing as relayed by Business Radar. These are Mombasa berths 11 to 14, Mombasa Container Terminal 1, Lamu Container Terminal and the Lamu Special Economic Zone.
Kenyans.co.ke says the phase has three deals: berths 11 to 14, Container Terminal 1, and one Lamu concession. A special economic zone is an area with its own business rules meant to attract factories and traders.
In April 2026 the Treasury added seven more KPA assets to the programme, bringing the list to 11. They include Mombasa Container Terminal II, the Mbaraki wharfs, cargo berths, and inland container depots at Embakasi in Nairobi and at Naivasha.
In Plain English
In a landlord port the state keeps the land and quays, and a private operator brings equipment, staff and money. The PPP Committee said on Thursday 27 August 2026 that Kenya would use this model, with KPA keeping ownership and oversight.
PPP means public-private partnership, a deal between a government body and a company. Kenya’s PPP Directorate is the National Treasury unit that guides such projects through approval and tender.
How the Concession Plan Reached This Stage
Kenyans.co.ke reports that the PPP Committee approved the feasibility studies on Thursday 27 August 2026. PPP Director General Kefa Seda said the step moved the assets from feasibility into procurement under the PPP framework.
Business Daily reported on Friday 16 October 2026 that the Treasury gave a second approval to the feasibility report. That approval clears KPA to open bids for the deals.
Business Radar relays the directorate’s project page, which lists a 30 year term and an open competitive tender. It adds that Maritime and Transport Business Solutions is a transaction adviser.
A Court Case and a Second Price Tag
Business Radar says the directorate’s page lists the project as in procurement but on hold because of a court case. The page does not name the case or give a value, and no ruling was found.
An earlier challenge by the Taireni Association of Mijikenda was settled by a consent dated 2 April 2024, according to Serrari Group. Whether that or a newer case is meant is not stated.
Serrari Group, citing the Invest Kenya 2026 investment catalogue, puts the first phase at about US$1 billion. That is higher than the Sh79.69 billion (about US$614 million) Business Daily reports, and the two figures may count different things.
What It Means for US Readers
American exporters and shipping lines that use Mombasa could see new terminal operators and fees once deals close. Nothing changes immediately, because the tenders have not opened.
The United States is not named in any source as a bidder or partner in these port deals. US investors tracking Kenya may read the plan as part of a push to fund big projects with private money.
What Is Not Known
No Treasury or PPP Directorate document gives the Sh79.69 billion (about US$614 million) or Sh7.79 billion (about US$60 million) figures. Those numbers rest on Business Daily’s report alone, and its full text could not be read.
It is not known which court case holds the project up, when tenders open, or who will bid. The gap between the Sh79.69 billion total and the US$1 billion catalogue estimate is also unexplained.
What Comes Next
The next visible step is the opening of tenders by KPA for the first-phase concessions. The Treasury has given no public date, and the project page links the timing to the court case.
Later steps would be bid evaluation and signing, which the sources do not date. Kenyans.co.ke said market engagement was due to begin in September 2026, and no result of it was found.
Frequently Asked Questions
What did Kenya announce about its ports?
Business Daily reports that a first batch of Mombasa and Lamu port assets will be offered to private investors. The Kenya Ports Authority will co-invest Sh7.79 billion (about US$60 million).
How much will the port deals cost?
The estimated total is Sh79.69 billion, about US$614 million at 130 shillings per US$. Business Daily cites the National Treasury for it, and no Treasury document has yet confirmed the figure.
What is a port concession?
It is a long lease in which a private company runs a public port asset and invests in it. The state keeps ownership under the landlord model.
Which ports and terminals are included?
The first phase covers Mombasa berths 11 to 14, Mombasa Container Terminal 1, Lamu Container Terminal and the Lamu Special Economic Zone. Seven more KPA assets were added in April 2026.
Who will run the ports after the deals?
That is not yet known. No bidder has been named, and the tenders have not opened.
Sources: Business Daily, 23 October 2026 (opening paragraph only); Business Daily, 16 October 2026; Kenyans.co.ke, 27 August 2026; Business Radar, 17 October 2026; Eastleigh Voice, 13 April 2026; Business Daily, 13 April 2026; Serrari Group, 28 August 2026; exchange rate from open.er-api.com, 24 October 2026 (all accessed 24 October 2026).
This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error · Editorial responsibility: Matthias Camenzind, Editor-in-Chief
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