The Kenyan government is working on a new master plan for the Lamu Port, a key transshipment hub, to attract additional private capital for its expansion. This move comes as the government prepares to commission the construction of a Ksh 2.2 trillion East African Oil Refinery on Wednesday. The refinery, being built by Dangote Group, is expected to boost the country's economy and create new opportunities for trade and investment.
According to Roads and Transport Cabinet Secretary Davis Chirchir, the new master plan will not only cover the Lamu Port South Sudan Ethiopia Transport (LAPSSET) corridor but also the entire Lamu metropolis. The government is excited about the prospects of the project, which is expected to accelerate the development of the LAPSSET corridor. The master plan is being developed to ensure that the port can accommodate increased traffic and facilitate the movement of goods and services.
The Lamu Port has been serving as a key transshipment hub, handling 799,161 metric tonnes of cargo as of December last year, compared to 74,380 in 2024. The Kenya Ports Authority (KPA) reported that container traffic at the port amounted to 55,687 TEUs during the 12-month period. The port's growth has been significant, and the government is keen to build on this momentum by investing in new infrastructure and facilities.
As part of the expansion plans, the government is targeting to rebuild Manda Airstrip to accommodate large aircraft. The airstrip has been refurbished, but the government plans to rebuild it completely to enhance its capacity. Additionally, plans are underway to construct six additional berths at the Lamu Port facility. These new berths will enable the port to receive crude oil and export refined products, boosting its role as a regional logistics hub.
The new refinery, expected to process 700,000 barrels of oil per day, will meet local demand and supply external markets. The project is a significant investment, estimated at $15-17 billion, and is expected to have a major impact on the regional economy. The refinery will also create new opportunities for trade and investment, and is expected to drive economic growth in the region.
The LAPSSET project, which includes a crude oil pipeline running from South Sudan through the Lokichar Oil Field and another pipeline from the port to Ethiopia through Isiolo and Moyale, is a critical component of the government's strategy to develop the region. The project is expected to have a major impact on the regional economy, creating new opportunities for trade and investment.
The groundbreaking ceremony for the refinery will be attended by various Heads of State, led by President William Ruto and Dangote Group Chief Executive Officer Aliko Dangote. The ceremony marks a significant milestone in the development of the Lamu Port and the LAPSSET corridor, and is expected to drive economic growth and create new opportunities for trade and investment in the region.
Key points
- The Kenyan government is developing a new master plan for Lamu Port to attract private investment and enhance its role as a regional logistics hub.
