NAIROBI, Kenya – Tensions are mounting over the future of the Sh5 billion Lamu Port after Auditor General Nancy Gathungu warned of governance lapses and blurred oversight that could derail Kenya’s flagship maritime project.
The latest audit for the year ending June 30, 2024, shows that multiple government agencies and private firms are operating within the port without formal agreements defining management or ownership responsibilities.
Among those occupying space in the facility are the Kenya Ports Authority (KPA), Kenya Maritime Authority, Kenya Coast Guard Service, Express Shipping and Logistics, and Seaforth Ship Agency Experts East Africa.
The Lamu Port-South Sudan-Ethiopia Transport (LAPSSET) Corridor Development Authority has also taken over large areas, including residential apartments, office blocks and a police station.
Gathungu warned that the absence of clear authority could spark disputes and compromise the viability of the multi-billion-shilling project.
“There is a lack of clarity on the responsibilities of the different stakeholders of the corridor,” she said in the report, adding that weak internal controls leave the project vulnerable to mismanagement and erode public confidence.
The audit further revealed that budget allocations for LAPSSET-related projects are scattered across agencies rather than centrally coordinated.
For instance, port construction funds were channelled through KPA, while road works were disbursed to the Kenya National Highways Authority, creating duplication and accountability gaps.
Governance breaches within the LAPSSET Authority itself also came under scrutiny. Salaries consumed 64 per cent of the authority’s revenue—nearly double the 35 per cent ceiling set by public finance regulations.
Slow progress on critical infrastructure continues to limit the port’s effectiveness. While three berths at Lamu Port are operational, cargo handling is hampered by incomplete road and transport links.
Key highways, including Lamu-Ijara-Garissa-Isiolo and Isiolo-Maralal-Lokichar, are either unfinished or yet to break ground.
The Auditor General cautioned that without urgent reforms to clarify roles, tighten financial discipline, and fast-track infrastructure, the viability of the LAPSSET corridor could be in jeopardy.
