MOMBASA, Kenya — The Kenya Ports Authority (KPA) will transition into a Public Limited Company (PLC) under the newly enacted Government Owned Enterprises Act in what the government describes as a bold move to boost efficiency, accountability, and profitability at the country’s main seaport.
Roads and Transport Cabinet Secretary Davis Chirchir announced the shift during a consultative meeting with port stakeholders at the Port of Mombasa, saying commercially viable state corporations must operate with private-sector discipline while maintaining public ownership.
“The GOE will be a big game changer to allow organisations like KPA to be run like the private sector,” Chirchir said.
Roads and Transport Cabinet Secretary Davis Chirchir has reaffirmed the Government’s commitment to ensure the Port of Mombasa remains efficient and competitive with the increasing cargo volumes.Addressing a special consultative session with the Port community stakeholders
A Shift Toward Commercial Discipline
The Government Owned Enterprises (GOE) Act, 2025, seeks to streamline governance across state corporations by separating policy oversight from operational management, tightening accountability structures and accelerating decision-making processes.
For KPA, the transition to PLC status is expected to introduce stronger corporate governance standards, improve financial transparency and enhance operational flexibility in a sector where speed and reliability determine competitiveness.
Officials say the reforms will position KPA to respond more effectively to rising cargo volumes and regional competition from other ports along the East African coastline.
Strengthening Trade Competitiveness
The governance shift comes at a time when the Port of Mombasa continues to record strong performance.
In 2025, the port handled 45.46 million tonnes of cargo, up from 41 million tonnes in 2024, underscoring its role as a critical gateway for Kenya and landlocked neighbours, including Uganda, Rwanda, South Sudan and parts of eastern Democratic Republic of Congo.
By adopting a PLC structure, authorities hope to align terminal performance with growing throughput while safeguarding trade flows and investor confidence.
Modernisation and Capacity Expansion
The reform also complements ongoing investments in port infrastructure and equipment acquisition aimed at reducing congestion and vessel waiting times.
KPA management has recently awarded tenders for additional cargo handling equipment, including reach stackers, terminal tractors and gantry cranes, to boost yard productivity and vessel turnaround time.
Transport sector officials argue that combining governance reform with capacity expansion will ensure the Port of Mombasa remains efficient, competitive and resilient in the face of increasing regional trade demands.
Economists say improved governance at strategic state corporations such as KPA could have a multiplier effect on the broader economy.
A more commercially driven port operator is expected to lower logistics costs, enhance service delivery and strengthen Kenya’s position as East Africa’s maritime and logistics hub.
