Kenya sets aside Sh41 billion to expand Mombasa port, handle 2.4 million containers

The government has allocated Sh41 billion to expand the port of Mombasa in a bid to ease congestion and accommodate rising cargo volumes driven by growing trade.

Projections show the port will handle more than 2.4 million standard shipping containers in 2025, up from two million at the end of 2024.

Speaking during the launch of a new commuter rail service in Mombasa, President William Ruto said a new yard would be constructed before the end of the year to manage additional cargo.

“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.

Decommissioned terminal

Chinese contractor China Communications Construction Company (CCCC) has already begun demolishing the old Kipevu Oil Terminal, which was decommissioned after Kipevu Oil Terminal 2 (KOT2) was completed about two years ago. KOT2 can handle up to four vessels.

The Kenya Ports Authority (KPA) plans to expand Terminal 19 by reclaiming land from the sea. Once the old terminal is demolished, this project will add more than 450,000 TEUs in handling capacity.

KPA Managing Director William Ruto said the authority is also working with container freight station (CFS) owners to enlarge their facilities to meet growing cargo demand, which has remained largely unchanged for two decades despite rising trade.

“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.

Last year, the port handled about 2.1 million TEUs, with volumes expected to reach 2.4 million by the end of this year. In-transhipment traffic jumped to 491,666 TEUs, a 132.9 per cent rise from 280,593 TEUs in 2023.

Projects around the port

President Ruto also announced that the government has partnered with the African Export-Import Bank (Afreximbank) to fund several projects around the port, including the Dongo Kundu Special Economic Zone (SEZ), to boost trade and investment.

Afreximbank has committed to supporting Kenya’s industrialisation and export-led growth 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 designed to help export-oriented industries thrive by providing shared infrastructure, economies of scale and access to global markets.

These three SEZs form part of the government’s fourth medium-term plan (2023–2027) under Vision 2030, which seeks to increase Kenya’s capacity to export value-added goods across Africa and beyond.

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