Chinese firm to build Sh14bn Kisumu port as Kenya eyes more regional trade
Workers sort cargo at Kisumu port. The Kenyan government will, together with its Chinese counterpart, finance the planned Sh14 billion modern Kisumu port. PHOTO | FILE
China Roads and Bridges Company (CRBC) will build a modern Sh14 billion port in Kisumu as Kenya targets a bigger maritime trade stake in the region.
Transport secretary James Macharia said the port will be built under a government-to-government arrangement and as part of phase two of the standard gauge railway (SGR) which will link Nairobi to Malaba on the border with Uganda.
“CRBC will construct the $140 million (Sh14 billion) port in Kisumu as we target to increase business with our neighbouring countries,” the minister told Shipping &Logistics.
Kisumu is deemed a critical hub for trade with neighbouring countries such as Tanzania and Uganda and by extension Rwanda and Burundi as well as those in the Great Lakes region.
For decades Kisumu port registered robust business activity helped by a reliable railway system and maritime vessels that ferried cargo to ports such as Mwanza and Bukoba in Tanzania and Jinja and Port Bell in Uganda.
Boost economic activities
Lake Victoria’s economic activity has however been eroded by a number of factors, including a derelict railway infrastructure and impenetrable and stubborn water hyacinth as well as boundary disputes that have turned the fresh water lake into a liability.
The plans to construct a new sea port and extend a branch of the SGR line being built from Mombasa is expected to boost economic activities in Kisumu and other satellite towns.
The piers in Homa Bay, Mbita and Luanda K’otieno are projected to register enhanced activity when the planed port becomes operational. Before the collapse of the lake transport system, Homa Bay was the main shipping point for goods to Tanzania.
Vessels from Kisumu docked in Homa Bay and offloaded cargo which was then transported via trucks to the Tanzanian border two hours away.
Mbita and Lunda K’otieno currently host regular ferry services by private firms and the construction of a new port facility is expected to boost trade in merchandise.
Construction of the Mombasa-Nairobi SGR line is 70 per cent complete and the government says that work will be completed ahead of schedule, with the commissioning expected in June next year. This would pave way for the extension of the railway line to Kisumu.
“West of Nairobi, the second phase of SGR project will be developed in three parts; Nairobi and Naivasha; Naivasha-Kisumu through Narok, Bomet, Sondu and Ahero; including a high-capacity port at Kisumu; and Kisumu-Malaba through Yala and Mumias,” Mr Macharia said.
Several investors are already eyeing bigger business ahead of the planned upgrade.
Kenya Pipeline Company (KPC) last year said an Indian investor plans to transport oil products between Kisumu and Port Bell in Uganda via Lake Victoria in a bid to cut high costs incurred moving the commodity by road.
Mahati, which won an 18-month contract with the government of Uganda for the supply of oil hopes to cut cost by reducing the number of trucks on the road coming from Uganda to collect fuel in Kenya.
The use of water vessels to transport the consignment, gives room for evacuation of huge volumes of fuel at ago and helps to create space for storage of more oil given that Kenya has constraints in oil storage capacity.
Rehabilitation
The construction of a new port in Kisumu will supplement the planned the 172-kilometre Ahero-Isebania highway that is expected to boost trade with Tanzania. The grand project traversing four counties – Migori, Kisii, Homa Bay and Kisumu – is expected to improve trade in the Lake Victoria basin.
“The rehabilitation of the Isebania-Kisii-Ahero section of the Tanzania-Kenya-South Sudan Corridor will facilitate cross border movement of passengers and freight, and further enhance access to regional markets,” says the project’s environmental and social study report.
Major constraint
“The road condition has deteriorated over the years due to increasing transit traffic on the road. Currently, the road carriageway width measures 4-5 metres wide, and increasingly is becoming a major constraint for the main economic activities within the Lake Victoria basin.”
The project will also entail upgrading 75km of feeder roads that connect to the highway. These include the Oyugis-Kendu Bay road (19.5km), Nyachenge-Tabaka-Ogembo road (15km), Sondu-Nyabondo road (6km), Oyugis-Gamba road (7km), Suneka-Rangwe road (18km), and Misambi-Ekerenyo road (11km).
