Kenya has set aside Sh41 billion to expand the port of Mombasa, aiming to ease congestion and accommodate the growing flow of cargo linked to increased trade.
The investment comes as projections indicate that the facility will handle more than 2.4 million standard shipping containers in 2025, up from two million at the close of 2024.
Speaking during the launch of a new commuter rail service in Mombasa, President William Ruto said the expansion will include a new yard to be completed before the end of the year to handle the additional traffic.
“We need to match cargo capacity and the infrastructure; that is why we shall be investing more in different port projects in the coming years,” he said.
A Chinese contractor, China Communications Construction Company (CCCC), has already started demolishing the old Kipevu Oil Terminal, which was decommissioned following the completion of Kipevu Oil Terminal 2 about two years ago.
The newer facility has the capacity to receive four vessels simultaneously.
The Kenya Ports Authority (KPA) plans to expand Terminal 19 through reclamation of land from the sea. Once the old terminal is cleared, the expansion is expected to add more than 450,000 twenty-foot equivalent units (TEUs) in capacity.
KPA Managing Director William Ruto said the authority is also working with container freight station (CFS) operators to increase their storage and handling space.
“Apart from port expansion, we are working with other stakeholders, including CFSs, to expand their facilities to accommodate increasing cargo throughput in the country,” he said.
Data from KPA shows the port handled 2.1 million TEUs last year, with volumes expected to hit 2.4 million by the end of this year.
Transhipment traffic grew sharply to 491,666 TEUs, marking a 132.9 per cent jump from 280,593 in 2023.
President Ruto further announced that the government had entered into a partnership with the African Export-Import Bank (Afreximbank) to fund projects linked to the port.
These include the Dongo Kundu Special Economic Zone (SEZ), which is meant to stimulate trade and investment.
Afreximbank has pledged to support Kenya’s industrialisation and export drive by financing SEZs in Dongo Kundu, Naivasha and Vipingo.
Through its affiliate, Arise Integrated Industrial Platforms (Arise IIP), the bank will develop industrial parks and SEZs equipped with shared infrastructure to support export-oriented industries with access to global markets.
The three SEZs form part of the government’s fourth medium-term plan under Vision 2030, which focuses on expanding Kenya’s ability to export processed goods across Africa and beyond.
