The programme covers assets at the ports of Mombasa and Lamu, as well as inland container depots serving Kenya and the wider East African region.
The first batch of concessions is estimated to require approximately $615 million (KSh79.69 billion), with the state-owned Kenya Ports Authority contributing $60 million (KSh7.79 billion).
Private investors will provide the remaining capital and take responsibility for developing and operating the facilities under public-private partnerships.
The winning investors will also pay concession fees to KPA, although the government has not disclosed the duration of the proposed operating agreements or the expected value of the fees.
The financial details were disclosed by Kenya’s National Treasury and reported by Business Daily on 23 October. The Treasury approved the feasibility report for the first phase in August, clearing KPA to proceed with the tendering process.
The first group includes Mombasa port berths 11 to 14, Mombasa Container Terminal I, Lamu Container Terminal berths one to three and the Lamu Special Economic Zone.
These facilities occupy important positions along Kenya’s transport network and handle cargo destined for domestic and regional markets.
Kenya shifts towards private port management
Preparations are also underway for a second group of concessions estimated at about $618 million (KSh80 billion).
The second phase will cover Mombasa Container Terminal II, berths 23 and 24, Mbaraki Wharf, cargo berths one to five and seven to 10, and the inland container depots in Embakasi and Naivasha.
The two phases are expected to attract approximately $1.17 billion (KSh151.9 billion) from private investors. That figure excludes KPA’s planned $60 million contribution to the first phase.
Kenya’s Treasury said the assets are operationally connected and share access channels, yards, supporting infrastructure and landside logistics systems.
It consequently wants the concessions structured as a portfolio instead of negotiating separate agreements for each terminal.
“Given the scale of the assets, their shared demand drivers, and the strategic objective of transitioning to a landlord port model, it is necessary that these assets are assessed and structured under the PPP framework on a portfolio basis, rather than through fragmented, asset-by-asset transactions,” the Treasury said.
Under the landlord model, KPA will retain ownership of the land and foundational infrastructure while private concessionaires finance, construct and operate individual facilities.
This gives investors long-term access to revenue-generating port operations without transferring ownership of the underlying assets.
Regional trade consequences
The concessions could significantly alter the management of Kenya’s maritime trade gateways.
Mombasa is the principal port serving Kenya and several landlocked East African economies, including Uganda, Rwanda, South Sudan and parts of the Democratic Republic of Congo.
Private investment could expand terminal capacity, improve cargo-handling efficiency and reduce the delays and logistics costs faced by importers and exporters.
However, the concessions will also give private operators substantial influence over facilities that affect fuel, food, manufactured goods and other cargo moving across East Africa.
The structure of the concession fees, tariffs and performance requirements will therefore determine whether users benefit from improved efficiency or face higher charges.
KPA began testing the landlord model in March 2026 when it started searching for an investor to operate Shimoni fish port.
The wider programme would go much further by bringing major container terminals, conventional cargo facilities and inland depots under privately operated concessions.
One important question remains unresolved: the government has not explained how KPA will finance its $60 million contribution.
The identities of the potential private investors have also not been disclosed. Their selection will determine who gains operational control over some of East Africa’s most important trade infrastructure.
