The growing demand for regional grain consumption is fast outpacing imports into the region. This is because there is only one grain terminal serving all the countries within this region. In addition, given the prospects for an imminent increase in population, the single grain terminal will not be sufficient to meet demand in the coming years. It is therefore necessary to undertake new strategic projects that can provide an alternative inlet for grains should the demand continue increasing. While Kenya has been the largest demand driver for agribulk volumes at the Port of Lamu - estimated to account for approximately 70% of the port’s total demand in 2045 - there is even higher possibility for higher demand as the regional countries gear up to using Lamu port. The resulting aggregated demand at the port of Lamu is thus projected to increase from 547,000 tons in 2023 to 3.3 M tons in 2045 (CAGR: 8.5%). Furthermore, as the regional production growth is lagging, the focus now turns to Lamu Port which will be expected to absorb a substantial share of growing activities of import and export. Therefore, the reason for this USD 210 million investment is to facilitate the development of Lamu Port which will enhance sufficient imports and exports to fulfill demand for commodities while also considerably creating more opportunities.


Build Own Operate Transfer



Proposal ready