Time for Lamu port to shine in Mombasa decongestion plan

A container being off loaded from a cargo ship at Lamu Port.9th November 2022.[FILE/Standard] From next month, French shipping giant CMA CGM will shift all its transhipment cargo from Mombasa to Lamu. This will mark the first large-scale operational shift in Kenya's port history aimed at easing Mombasa's overstretched capacity. The decision comes with a second prong: overstayed containers clogging Mombasa's yards will be evacuated, with some destroyed, in a bid to reclaim critical operational space. A recent comprehensive yard audit identified the worst-offending cargo, and Kenya Ports Authority (KPA) went a step further by publishing a specific list of affected containers and giving a 14-day notice. "Many of the containers have been here for months, some for years, occupying space that should be turning over for active cargo. Ports thrive on velocity. If containers stay too long, the whole system clogs. This is why we are pairing Mombasa's clean-up with Lamu's scale-up," said KPA Managing Director Captain William Ruto. Alongside physical space, KPA and Kenya Revenue Authority (KRA) are overhauling Lamu's operational backbone. The port is receiving upgraded yard management systems and streamlined customs protocols designed to process transhipment traffic with minimal friction. "The aim is to reposition Lamu as a dedicated hub for transhipment cargo, with containers merely passing through Kenya en route to other destinations, freeing Mombasa to focus on direct import and export flows," Ruto said. Kenya Ships Agents Association Chief Executive Elijah Mbaru said Lamu's space and upgraded facilities give it a unique opportunity to deliver flawless transhipment services. "KPA should give shipping lines more incentives, such as discounts on both cargo and shipping-related charges, considering that these same lines will also use Mombasa to pick up or drop off cargo," Mbaru said. He stressed the need for investment in horizontal infrastructure such as warehousing, roads, and rail links to enable Lamu to handle cargo for neighbouring countries effectively. "This is a turning point," says Elias Baluku, acting executive director of the Federation of East African Freight Forwarders Associations (FEAFFA), a regional body for customs agents. He added: "For years, Lamu has struggled to find its role in Kenya's port strategy. If this works, it will not only decongest Mombasa but also put Lamu firmly on the maritime map." The timing is critical. By July 2025, Mombasa's container throughput had surpassed one million units, on track to hit 92 per cent of its 2.18 million Twenty-foot Equivalent Unit (TEU) design capacity before year-end. TEU is a standard unit of volume used in the shipping and transportation industry, specifically for measuring the capacity of container ships and terminals - In 2024, Mombasa handled 41.1 million metric tonnes, a 14.1 per cent jump from 2023. Growth in cargo volumes is consistently outpacing infrastructure expansion, creating a strain that experts warn could spiral into costly delays and demurrage charges if left unchecked. "This isn't about convenience. It's about survival," said a senior KPA operations manager, who sought anonymity as he is not authorised to speak to the media, adding that cargo volumes are outpacing infrastructure growth at the port of Mombasa. Shippers Council of East Africa (SCEA) Chief Executive Agayo Ogambi warned that without decisive action, "Mombasa risks a cycle of congestion, longer vessel turnaround times, and escalating logistics costs across the supply chain." While projects such as phase III of the second container terminal, which will add 500,000 TEUs of capacity, are under construction, equipment upgrades alone will not solve the problem. Multiple stakeholders pointed out that operational discipline, yard efficiency, and cargo flow management are equally critical. They said the Lamu plan offers a way to sidestep these bottlenecks by creating a functional division of labour between Kenya's two deep-water ports. Commissioned in 2021 as part of the Lamu Port-South Sudan-Ethiopia Transport (Lapsset) Corridor, Lamu Port was envisioned as a trade gateway linking Kenya with Ethiopia and South Sudan. However, security challenges, weak hinterland connections, and Ethiopia's pivot toward Somaliland's Berbera Port left it underused. The CMA CGM shift is the first significant signal that Lamu is being woven into Kenya's core maritime strategy. By specialising in transhipment, Lamu avoids the need for the same level of hinterland connectivity required for domestic-bound imports, making it an ideal pressure valve for Mombasa. Kenya's pivot comes amid an intensifying regional battle for maritime dominance. Tanzania's Dar es Salaam Port is undergoing a World Bank-backed upgrade, with major investments from Adani Ports and DP World. Djibouti remains the Horn of Africa's primary maritime gateway, while Berbera is rapidly emerging as Ethiopia's preferred outlet. A University of Nairobi port policy researcher notes: "If we don't operationalise Lamu as a complementary port, Kenya risks becoming a one-port country in a two-port region." The Lamu diversion aligns with President William Ruto's April 2025 pledge to revitalise both Mombasa and Lamu ports under a Public-Private Partnership (PPP) model. However, PPP proposals have faced resistance from coastal leaders, labour unions, and legal challenges, slowing some reforms. Despite these headwinds, the transhipment plan for Lamu is moving forward, offering Kenya a rare chance to test a decentralised port operations model under live market conditions. Experts say that if the initiative succeeds, Mombasa could regain the operational breathing space needed to handle rising domestic and regional trade, while Lamu finally assumes a strategic role as the region's transhipment hub. Failure, however, could leave Kenya with two underperforming ports in an increasingly competitive maritime landscape. Mr Mbaru said, "This is not just about shifting containers. It's about building a fully integrated system. With the right incentives, efficient processes, and strong intermodal connections, Lamu can become a world-class transhipment hub. But without that investment, it will remain an underutilised asset."

Time for Lamu port to shine in Mombasa decongestion plan

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