The concession deals for a first batch of assets at the Mombasa and Lamu ports to private investors will cost an estimated Sh79.69billion, the National Treasury has revealed, with the Kenya Ports Authority (KPA) making a co-investment of Sh7.79billion ($60million).
The State-owned ports manager has already been granted approval to float tenders for the concession of Mombasa port berths 11-14, Mombasa port container terminal 1, Lamu container terminal berths 1-3 and the Lamu Special Economic Zone under a public-private-partnership (PPP) model.
“User-pay; concession fees payable to KPA,” the Treasury said in a brief seen by Business Daily .
Preparations are also underway for a second batch of Sh80billion concession deals that will cover more KPA assets, which include: Mombasa container terminal II (berths 20-22), container terminal berths 23-24, cargo terminal berths 1-5 and 7-10, Mbaraki Wharf, and the inland container depots (ICDs) in Embakasi and Naivasha.
This means that the concessions from the two batches of KPA assets are expected to attract Sh151.9billion, excluding the Sh7.79billion co-investment by the State firm in the first set of property marked for the PPP deals.
The Treasury granted a second approval of a feasibility report for the concession of the first batch of assets at the Mombasa and Lamu ports to private investors in August 2026, paving the way for KPA to open bids for the deals.
The approved feasibility report covers the first phase of a concession programme, which targets four assets at the Mombasa and Lamu ports.
The concession of Mombasa port berths 11-14, Mombasa port container terminal 1, Lamu container terminal berths 1-3 and the Lamu Special Economic Zone under a PPP model are listed as a priority under Kenya’s fourth medium term plan.
The National Treasury in April 2026 opened a new portfolio of seven additional port-linked infrastructure facilities owned by the KPA for investment under a PPP arrangement.
The additional assets proposed for inclusion under the expanded PPP portfolio included Mombasa port container terminal II (berths 20–22); Mombasa port container terminal (Berths 23–24); Mombasa port cargo terminal – Mbaraki Wharf; Mombasa port cargo terminal – Berths 1–5; Mombasa port cargo terminal (berths 7–10); the ICDs in Nairobi (Embakasi); and Naivasha.
“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 said in a disclosure as it kicked off recruitment of an advisor to guide the planned PPP deal.
“Consequently, decisions taken in relation to one asset have material implications for the performance, efficiency, and bankability of the other assets within the portfolio,” it added.
The Treasury had initially listed four KPA assets for listing under the PPP model. The initial four assets included: 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 (SEZ).
“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.
KPA, in March 2026, commenced the search for an investor to run the Shimoni fish port under a landlord-model PPP arrangement. The Shimoni deal could open up the planned lease out of some operations at the Mombasa and Lamu ports.
“Shimoni Port is one of the projects identified under the Kenya Vision 2030 to support the exploitation of the blue economy resources for accelerated socio-economic development.”
A landlord PPP model is a structured deal whereby the public sector retains ownership of land and foundational infrastructure while leasing it to a private investor who is then tasked with financing, constructing, and operating the facility.
