Why Addis is key to KPA growth target

Kenya Port Authority.[File Courtesy]

Maritime experts in Mombasa have called for a more proactive approach that aims to target the potential Ethiopia has for the Kenya Ports Authority (KPA).

They called for establishing and strengthening a hinterland liaison office in Addis Ababa, not just as a mere diplomatic gesture but as a strategic necessity, anchored in the economic reality of Ethiopia as one of Africa’s largest and fastest-growing consumer markets.

With a population exceeding 120 million and sustained economic expansion over the past decade, Ethiopia represents a hinterland prize no serious regional port can afford to ignore. Landlocked Ethiopia depends almost entirely on foreign ports for its maritime trade. Historically, Djibouti has dominated, handling over 90 per cent of Ethiopian cargo. 

“But this dependency is not immutable. Shifting dynamics of cost, efficiency, infrastructure, and geopolitical diversification are gradually opening alternative corridors—and Kenya must be ready to step decisively through that door,” Mr Andrew Mwangura, former Secretary General of the Seafarers Union of Kenya (SUK), says.

At the heart of this opportunity lies the Port of Lamu, a flagship project within the broader Lamu Port-South Sudan Ethiopia Transport (Lapsset) corridor framework.

Designed as a transformative regional network linking Kenya’s coast with Ethiopia and South Sudan via highways, railways, pipelines, and resort cities, Lapsset holds immense promise. 

“Yet, despite significant public investment, Lamu remains underutilised—a reality that points not to an infrastructure gap, but to a failure of market penetration and commercial strategy,” said Mwangura.

KPA already maintains regional liaison offices in Kampala, Uganda; Kigali, Rwanda; and Goma in the Democratic Republic of Congo. Mwangura maintains that these offices have proven valuable in securing cargo flows from Kenya’s traditional hinterland markets. But conspicuously absent from this footprint is Ethiopia—Africa’s second-most populous nation and a landlocked economic giant whose trade potential far outweighs that of any other Kenyan hinterland partner. 

“This gap must be closed without delay,” he said.

He added that this situation is where a robust liaison presence in Addis Ababa becomes indispensable. Such an office must go beyond routine representation.

“It should function as a fully empowered commercial hub, actively engaging Ethiopian importers, exporters, logistics firms, and government agencies,” said Mwangura.

It must sell not just a port but also a complete logistics solution: competitive tariffs, efficient cargo handling, seamless inland connectivity, and reliable service. 

“In essence, KPA must adopt the mindset of a multinational enterprise, not a traditional port authority,” added Mwangura.

He insisted that aggressive marketing is not optional—it is the lifeblood of this strategy. 

Another port stakeholder, Joseph Bartholomew, said Ethiopia has significant potential as a major user of the Lamu Port, a key component of the Lamu Port-

The Lapsset corridor aims to diversify its imports and exports away from the Port of Djibouti.

Bartholomew said that there is a need to fast-track proper business deals to entice Ethiopian traders to shift focus and start using the Port of Lamu to import and export their products and goods. “Ethiopian businesses need to be convinced, through data and demonstrable experience, that routing cargo through Lamu offers tangible advantages: reduced congestion compared to more established ports, shorter transit times to certain Ethiopian regions, and integrated logistics along the Lapsset corridor,” he noted. But these advantages must be clearly articulated, consistently communicated, and backed by performance, according to Mwangura.

He said success also hinges on coordination across multiple Kenyan institutions.

“The port alone cannot deliver competitiveness if inland transport remains inefficient or bureaucratic hurdles persist at border crossings,” he said.

Traders say customs, immigration, transport, and trade facilitation agencies must operate in sync to ensure cargo moves swiftly and predictably from ship to hinterland destination.

They say that the liaison office in Addis Ababa can serve as a vital feedback loop—relaying Ethiopian stakeholders’ concerns to Kenyan authorities for timely resolution.

There is a geopolitical dimension that Kenya must navigate with care.

Ethiopia’s reliance on a single primary port has long been a strategic vulnerability, prompting Addis Ababa to actively explore diversification.

Experts say that this gives Kenya a diplomatic opening—but also a competitive challenge, as other regional players are equally eager for a share of this lucrative market.

“To succeed, Kenya must position itself not merely as an alternative but as a reliable, preferred partner in Ethiopia’s trade ecosystem. The argument for deeper engagement in Addis Ababa is further strengthened by shifting global supply chains. Recent disruptions—from pandemics to geopolitical tensions—have underscored the need for resilience and flexibility in trade routes,” said Bartholomew

Landlocked countries such as Ethiopia are increasingly seeking multiple access points to the sea to reduce risks. By proactively establishing a strong commercial presence in Addis Ababa, KPA can align with this strategic shift and incorporate Kenyan ports into Ethiopia’s long-term logistics plans.

However, ambition must be paired with realism. The Port of Lamu, while modern and strategically situated, is still in the early stages of operational development. Shipping lines and cargo owners tend to be risk-averse; they require assurances of reliable service, sufficient volumes, and efficient hinterland connections before committing to a new route.

This is why ongoing marketing, targeted incentives, and pilot shipments are crucial to build trust and gradually increase usage.

In this context, the liaison office should also foster partnerships with Ethiopian freight forwarders and logistics companies, offering tailored solutions and possibly preferential terms during initial phases.

Demonstration projects—such as successfully routed cargoes delivered efficiently through Lamu into Ethiopia—can serve as powerful proof points, slowly shifting perceptions and encouraging wider adoption.

Ultimately, the question is not whether Ethiopia is a viable market for KPA—it clearly is. The real question is whether Kenya is willing to dedicate the time, resources, and strategic focus needed to seize it.

Establishing a liaison office in Addis Ababa is a vital first step, but it must be followed by a sustained commitment to excellence, innovation, and customer focus.

Mwangura emphasised that the Port of Lamu cannot remain a monument to unmet potential; it must become a dynamic driver of regional trade—drawing cargo from beyond Kenya’s borders and affirming the country’s role as Eastern Africa’s leading maritime and logistics hub.

“To achieve this, KPA must think beyond the quay and view the hinterland as its true field of competition,” the former SUK official stated. In Addis Ababa, Mwangura believes, lies not just an office but an opportunity—a gateway to a vast market that could transform Kenya’s port sector fortunes.

“The time to act is now, with a strategy as bold as the vision that gave rise to Lamu itself,” he stressed.