The Kenya Ports Authority (KPA) is seeking Sh 17.4billion to complete the construction of the Lamu Port and buy equipment for full capacity operations.
The Lamu Port is also a Kenya Vision 2030 flagship project and is expected to transform regional economies through increased trade. The amount, which is not readily available at the moment, will be borrowed from both international and local lenders. Sh 12.4 billion will be borrowed from both local and foreign banks, while Sh 5 billion will be acquired internally.
Role of the fund
The funds acquired internally will be used to purchase general equipment security and ICT installations. On the other hand, Sh 3.2 billion will be used to complete construction works at the port while Sh h3.1 billion will be used to purchase marine equipment. Sh 6.1 billion will be used for yards operations.
“Completion of construction of the project is expected on October 21 (subject to adequate funding) and the action plan for operalisation of the completed project on a bare minimum equipment has an estimated expenditure of Ksh17,400 million,” KPA managing director John Mwangemi said.
Construction of the Lamu Port began in December 2016 with the dredging works on the three berths. It is part of the Sh2.5 trillion Lamu-South Sudan-Ethiopia Transport Corridor (LAPSSET). The foundation stone of the LAPSSET project was laid by former President Mwai Kibaki in 2012, a dream that finally comes to fruition nine years later. The foundation stone of the LAPSSET project was laid by former President Mwai Kibaki in 2012, a dream that finally comes to fruition nine years later.
