NAIROBI, Kenya — The National Treasury of Kenya has expanded its public-private partnership (PPP) programme to include at least seven additional port-linked facilities, in a move aimed at boosting efficiency and attracting private investment into the country’s logistics sector.
The expanded pipeline targets key assets owned by the Kenya Ports Authority, with the government seeking to bundle interconnected infrastructure into a single investment portfolio rather than offering projects individually.
According to the Treasury, the integrated approach is designed to enhance operational efficiency, improve coordination across facilities, and increase the bankability of the projects for investors.
Among the newly listed assets are several strategic facilities at the Port of Mombasa, including Container Terminal II (berths 20–22), Container Terminal (berths 23–24), cargo terminals at Mbaraki wharfs, berths 1–5, and berths 7–10. Inland logistics hubs such as the Inland Container Depot Nairobi (Embakasi) and the Inland Container Depot Naivasha have also been included.
“These assets are operationally interconnected and may share common infrastructure and interfaces, including yards, access channels, terminal support facilities, and landside logistics systems,” the Treasury noted.
The government has already initiated the process of hiring a transaction advisor to guide the structuring and implementation of the expanded PPP programme.
Initially, the PPP pipeline had focused on four major assets: Lamu Port Container Terminal (berths 1–3), Mombasa Port (berths 11–14), Mombasa Port Container Terminal I (berths 16–19), and the Lamu Special Economic Zone.
However, the Treasury now says a portfolio-based approach is necessary given the scale, shared demand drivers, and the long-term goal of transitioning Kenya’s ports to a landlord model—where the state retains ownership of infrastructure while private operators handle commercial activities.
“Decisions taken in relation to one asset have material implications for the performance, efficiency, and bankability of the other assets within the portfolio,” the Treasury said, warning against fragmented, asset-by-asset transactions.
The move comes weeks after KPA began seeking a private investor to operate the Shimoni Fish Port under a similar PPP framework. The facility, completed in June 2025, is part of Kenya’s broader blue economy strategy under Kenya Vision 2030.
Under the landlord PPP model, private investors will be responsible for financing operations, acquiring cargo-handling equipment, hiring staff, and managing day-to-day port activities. Meanwhile, KPA will retain control over core infrastructure, including berths, and ensure regulatory compliance.
The Shimoni Fish Port, with a capacity of 24,000 tonnes annually, is the largest among smaller coastal ports such as Kiunga, Ngomeni, Malindi, Kilifi, Funzi, and Vanga. It is expected to play a critical role in supporting fisheries and coastal economies.
The expanded PPP push signals a broader policy shift toward leveraging private capital to modernise Kenya’s transport and logistics infrastructure, as the government seeks to position the country as a regional trade hub.
