Transport Cabinet Secretary Kipchumba Murkomen on Thursday, November 9, defended the government’s plans to lease the ports of Mombasa and Lamu to private investors.
Appearing before the Transport and Infrastructure Committee in parliament, Murkomen said that the involvement of the private sector in managing activities like cargo handling will enable quick decision making.
He added that the Kenya Ports Authority (KPA) National Ports Master plan 2018-2047 envisaged that the Lamu port would be operated principally as a landlord port.
According to him, opening the doors for private investors to take part in the port activities would boost efforts to upgrade the ports to the required standards.
In his submissions, Murkomen explained that KPA was facing financial constraints and, as such, would not achieve the required development in the ports on its own.
As such, he noted that the government was seeking strategic partners to invest in Port development in the form of Public-Private Partnership (PPP) arrangements.
The Transport CS mentioned integration of the ports with strategic logistic hubs and special economic zones as among the projected goals of the collaboration with the private sector in port development.
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“There is need for integration of development of port infrastructure and associated commercial and logistics hubs such as special economic zones and industrial parks to grow the port throughput, manufacturing and value addition activities.”
“Hence, the need for development of port capacity through establishment and operationalization of Special Economic Zones and logistics hubs around ports.” Hon. Murkomen.
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In a report tabled before the Committee, the Transport Ministry indicated that the lease would inject private capital into port development and hence reduce government funding burden on capital projects.
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Additionally, Murkomen noted that such investments would eliminate port congestion and Improve efficiency in service delivery.
“The proposed leasing of sections of the Mombasa and Lamu ports to private investors will bring great benefits to Kenyans. These include reducing the Government’s funding burden on capital projects with the injection of private cash investments into port development,” he added.
Murkomen’s appearance before the committee came on the back of jitters surrounding plans by the state to privatize the ports seen as crucial economic hubs in the coastal region.
In October, Coast region’s leaders led by their governors opposed the plans and even demanded for control of natural resources in the region. However, the state allayed their fears and assured that the ports would not be privatized.