Lamu set for growth as projects take off

The other week I took the newly launched Jambojet flight to Lamu to enjoy a few days vacation. The smooth flight via Malindi landed on a new and longer runway on Manda Island.

Lamu can, therefore, now handle much larger aircraft. A new and beautifully finished airport terminal bearing the name Manda Airport was quite welcoming .

The last time I was in Lamu was in 2010 in a team of consultants undertaking the Lamu Port South Sudan-Ethiopia Transport (LAPSSET) corridor project feasibility.

This time round one could notice an evident shrinkage in number of foreign tourists. This is explained by an unfortunate bout of insecurity in Lamu last year and subsequent negative travel advisories by a number of foreign countries.

As I sat outside a seafront hotel watching speedboats and dhows doing their routines on the Lamu Channel and donkeys dutifully doing their chores on the street in front, I found myself engaged in a useful conversation with a Lamu resident who introduced himself as Said Abubakar (not his real name).

Lamu is a friendly and closely knit society where everyone seems to know what is happening around the county.

To trigger conversation, I intimated that the seafront is now looking very beautiful with modern solar street lighting and “cabro” blocks pavement.

Said pointed out that the seafront upgrade was done recently by the county government. As he opened up, he enumerated all the big developments that are soon to happen in Lamu.

He talked about grid power from Mombasa which has now reached the Lamu mainland, but is yet to be stepped down for distribution. The island is still using diesel thermal generators. The new grid power shall make a huge developmental impact on the county.

He said soon Lamu would be generating power. The AMU Power Company, he added, would early next year commence construction of a 1,000-megawatt power plant fed with imported coal.

He was excited about the new jobs for the youths of Lamu, but lamented that most of these jobs may end up being taken by people from outside the county, unless Lamu quickly trains its own.

Yes, I supported his view and remarked that this is a similar issue that has been encountered in recent years in the new oilfields of Turkana.

I told him that the county could learn and build on good experiences from Turkana while avoiding known pitfalls.

I later checked some facts about AMU Power and established that it will likely be the largest single power plant not only in Kenya but also in the region.

Large capacity power plants usually deliver lower unit capital and operating costs due to economies of scale.

Equity funding for the project is all Kenyan with debt financing from a number of multilateral financiers. It is a project financing structure which demonstrates that Kenyans have come of age and can plan, develop and finance large projects.

As we enjoyed a seafood meal, Said proceeded to explain about the Chinese contractors who have already started arriving in the county to undertake construction of the new Lamu port. Kenya Ports Authority, the implementing agency, already has its personnel in town.

The port is the first among many components of the LAPSSET corridor project. It should be expected that the next logical component shall be a highway linking Lamu to the hinterland. A port without an evacuation infrastructure would be of little value, I told Said.

It is useful to mention that there is an ongoing debate between Kenya and Uganda as well as the upstream investors in respect of routing for the crude oil pipeline.

Ugandans contend that it is cheaper, quicker and more secure to install a pipeline from Uganda via Eldoret, Nairobi to Mombasa.

The Kenyan official policy remains the LAPSSET route, that is, via Turkana to Lamu. We shall know more about the selected route option when the official pipeline feasibility report is out next month.

When President Mwai Kibaki launched the LAPSSET project, he envisaged the opening up of hitherto marginalised sections of Kenya.

The socio-economic empowerment, enhanced communication and trade shall of necessity result in improved security. It is the direct and indirect national socio-economic benefits driven by the project, more than the project financial returns that matter most.

As we continued our conversation into the evening, Said enumerated a variety of recent cultural festivals by Lamu County as proactive initiatives to attract back local and foreign visitors.

Yes, without tourism, Lamu is feeling quite depreciated, just like most of the other coastal tourist counties.

As the country (and the county) work through the security issues, the upcoming port and power projects shall definitely resuscitate economic activities in the county while waiting for tourism to revive.

As new infrastructure projects commence, it is important that more funding be sought for the Lamu to create capacity to support the anticipated inflow of economic activities.

To Kenyans wishing to know and enjoy their country, I adjudged Lamu to be a safe and interesting destination. The new air travel plan appears convenient, comfortable and affordable.

Finally, I learned from my new friend Said that Amu is the real name for the Island, and that Lamu was a corruption by the early foreigners.

Mr Wachira is the director Petroleum Focus Consultants. Email: [email protected].