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KPA charts ambitious course, sees profits hitting Sh20b in five years

Business

 

 Transport Cabinet Secretary Kipchumba Murkomen, Kenya Ports Authority Chairman, Benjamin Tayari and Transport PS Mohamed Daghar during the official launch of KPA  2024/2028 Strategic Plan at Pride Inn Hotel in Mombasa on November 28, 2023. [Omondi Onyango,Standard]

Revenue from the Kenya Ports Authority (KPA), which runs all ports in the country, is projected to hit Sh65 billion in the next four years up from Sh51.4 billion this year.

According to a revised strategic plan, KPA’s pre-tax profits will rise from Sh11.3 billion in 2020/2021 to Sh16.5 billion in 2026, and ultimately reach Sh20 billion by 2028.

"The total throughput will grow from 33.62 million tonnes in 2020/2021 to 37.7 million tonnes in 2028," states a report launched by Transport Cabinet Secretary Kipchumba Murkomen.

The CS said that the KPA strategic plan details specific actions directly in line with job creation and reducing the cost of living.

With assets totaling Sh338 billion, KPA is the fourth-largest State corporation in net assets, after the National Social Security Fund, the University of Nairobi, and KenGen.

“It is a testament to the dedication and commitment of the KPA team in fostering economic growth and prosperity for all Kenyans,” said the CS after unveiling the plan in Mombasa.

Murkomen said that KPA has embarked on a transformation journey, adding that the port plays a vital role in facilitating the movement of goods and connecting the region to the global market.

“The strategic plan outlines a clear roadmap to enhance the efficiency, competitiveness and sustainability of our ports, ensuring they remain at the forefront of economic growth,” he said.

The CS noted that the anticipated rise in cargo volumes stems from improving regional economies. He added that KPA must develop robust plans to meet the growing demand.

“KPA continues to expand the Port of Mombasa, fully operationalise the Port of Lamu, and improve Lake Victoria ports to provide efficient inter-modal linkages along the East Africa Community (EAC) corridors,” said Murkomen.

KPA Managing Director William Ruto said Mombasa Port has the potential to attract more business from Ethiopia, South Sudan, and the Democratic Republic of Congo.

“We have closed our office in Rwanda and expect to open an office in DRC to tap the transit cargo market in that country,” said Ruto.

Ruto, who presented a strategic plan paper to the business community in the shipping industry, said that Mombasa Port had outperformed ports that were claimed to offer superior services.

"When a ship comes to Mombasa, it will only take two days to get its goods discharged while in Dar es Salaam and Durban ports, the ships take 15 days to discharge cargo," Ruto claimed.

He said that KPA, as a strategic facilitator of maritime trade, has been collaborating with key government partner agencies to address issues and facilitate smoother business operations in the port.

Ruto assured that KPA trains its employees to have the necessary skills and capabilities to implement the various projects and initiatives outlined in the strategic plan.

As part of efforts to enhance efficiency, Ruto said KPA is working to ensure that cargo trucks spend only two hours within the port premises.

"We also want to improve productivity in the port by making sure we remove more cargo from the ships within a short time,” he said.

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