Kenya’s LAPSSET corridor project receives $1.93m grant


The Lamu Port South Sudan Ethiopia Transport (LAPSSET) Corridor Development Authority (LCDA) has received US $ 1,936,560 million grant to help in the construction of the remaining 29 berths part of the mega project.

The grant was provided by the African Development Bank through the New Partnership for Africa’s Development Infrastructure Project Preparation Facility (NEPAD-IPPF).

The funds will be used to procure transaction advisory services and related technical assistance which will make the project attractive to investors.

The Lamu Port project is part of the LAPSSET Corridor Program, which is stipulated within the Kenya Vision 2030 strategy. The port project has 32 Deep Sea Berths estimated to cost US $ 5 billion.

In the short term plan, US$ 689 million will be spent on dredging and reclamation, construction of Berths and Yards, construction of revetment, causeway and roads; construction of buildings and utilities; procurement of equipment and tug boats.

The project was launched five years ago with the ground breaking at Lamu Port Site. This was followed by the construction of the various preliminary infrastructure facilities and related services at the port. Subsequently, detailed engineering studies were undertaken for the first 3 Berths of Lamu Port.

The first 3 Berths are fully funded by the Government of Kenya, while the remaining 29 Berths will be funded through public-private partnership (PPP) financing for construction and operation which will require undertaking the preparation of financial structuring and related project financing regimes.

The government is currently developing the first three berths at a cost of US$480 million, with the first berth expected be commissioned by mid-2018 and the next two in December 2020.

To fully realize the development of the LAPSSET project, the government requires 2 trillion shillings, which it has been making efforts to meet.

According to LCDA, the lack of a transaction advisor and technical expertise has made the project unattractive to investors thus the reason for slow implementation.


Lamu port is expected to handle 13.5 million tonnes of dry cargo in 2020 and 23.9 million by 2030.

Once fully completed, the Port will provide a second Sea Port and Transport Corridor Gateway link to serve the growing import and export cargo base, including the new hinterlands of Northern Kenya, South Sudan and Ethiopia. It will also will congestion on Mombasa Port and the Northern Transport Corridor.