Revitalization of The Port of Kisumu

In 2017, the Kenya Ports Authority (KPA) began the project to re modernize the Port of Kisumu. We are excited by the prospects of having a modern, functional and efficient port in the lakeside city. However, the revitalization of the port of Kisumu will  require a sustainable development model including an adequate cargo and passenger generation plan  to ensure that the port system will operate at its optimum for the benefit of  East Africa. 

Firstly, the port will need to be strategically located and provide the required advantages for it to be considered as a preferred destination for passengers and for cargo import and export. According to the World Bank, The catchment area of Lake Victoria holds a population of more than 35 million people, and is responsible for an approximate Gross Domestic Product (GDP) of some US$30 billion, or around 40 percent of the total GDP from the East Africa Community Countries. With the right plan the port of Kisumu will offer a much needed strategic opportunity for Kenya to become a lake transport hub for the East African region. 

The Catchment Area

Significant economic potential exists around the lake, such as agriculture, irrigation, fishery and inland water transportation. The majority of the people who live around the lake depend on agriculture for their livelihoods. Although its contribution to GDP has been declining due to the growth of other sectors (such as mining) agriculture remains crucial for inclusive growth, contributing to 20-30 percent of GDP and employing 60-70 percent of the total workforce. The region is estimated to have a potential theoretical maximum of US$63 billion of agricultural production per annum, assuming no constraints on land use. The region currently produces US$4.8 billion of agricultural commodities per annum, accounting for a significant share of total agricultural production in Kenya, Tanzania and Uganda.

In the Mwanza region of Tanzania (the largest port on Lake Victoria) about 85 percent of the population rely on agriculture for their livelihood. In the Mara region (one of Tanzania’s 30 administrative regions situated on the south eastern shore of Lake Victoria) nearly 90 percent of population are engaged in agriculture, contributing to about 60 percent of its regional GDP. The ports in Mwanza are  currently being upgraded to provide an opportunity to reduce transport/trade cost with the use of least cost links for especially for Burundi, part of Eastern DRC and Uganda as well as to provide viable alternative trade routes including to and from Kisumu. The proposed infrastructure and port safety  projects to improve access to  the region west of Lake Victoria and to the eastern shore of Lake Victoria could  help spur regional economic growth.

Uganda is a landlocked country with an area of 236,040 square kilometers. With a population size of 34.1 million, the country has recorded high population growth rate of 3.2 percent per annum. Uganda’s Vision 2040 calls for a series of structural measures to accelerate economic growth. Uganda has committed to building the stock of physical capital, notably through investments in the country’s ports on Lake Victoria which are seen as essential for economic development, agricultural productivity, and poverty reduction. The World Bank’s Africa Strategy highlights that Africa’s infrastructure networks increasingly lag behind those of other developing countries and are especially characterized by missing regional links and limited access.  The strategy notes that regional integration within East Africa could contribute significantly to reducing infrastructure costs, by allowing the region’s countries to capture scale economies and manage regional public goods effectively. Such a prospect offers the port project some opportunity to gain from the World Bank  infrastructure funding considerations.

Kisumu’s Competitive Advantage

Secondly, The port of Kisumu fronts Kenya’s third largest city. For decades, the port registered robust business activity helped by a reliable railway system and maritime vessels that ferried cargo to Tanzania and  Uganda. The plans  to construct a new green port in Kisumu and to extend a branch of the standard gauge railway being built from Mombasa are expected to restore high economic activity in the city. The proposal to revitalize the current port facility could offer a cheaper complementary means of transporting goods to the regional markets than by road. From a demand and revenue potential perspective, the port could focus on cargo handling and become an important hub for East African Community (EAC) trade, as it is conveniently situated for cargo destined for certain regions of Uganda, Tanzania, the Democratic Republic of Congo (DRC), Rwanda, and Burundi.

Thirdly, the County Government of Kisumu is currently developing the Kisumu Lakefront City Project. The proposed project seeks to increase tourism activities within the western Kenya Tourism Circuit and to establish a Special Economic Zone. The Lakefront initiative aims to connect existing patterns and the Central Business District of Kisumu City; create a plot layout along the lakefront; optimize land use and land value; create investment opportunities; establish incremental growth opportunities; enhance public transport services; and harmoniously link the city and the lake including opening- up the lakefront to public access. There is  an opportunity to connect the port project as the special economic zone of the Kisumu Lakefront City.

Fourthly, another opportunity could be to position the new port  as a local cargo port focusing on the export of regional products and the import of local products from Uganda and Tanzania in and out of the interior piers in Homa Bay, Kendu Bay, Kowuor, Asembo Bay, Mbita, Muhuru Bay, Mfangano, and Port Victoria. The port could act primarily as a transit port, focusing on transit cargo from Mombasa to the EAC region as well as offer port related services from the Kisumu port shipyard to the inland piers under KPA. The 450KM Lake Victoria Ring Road Project is also currently being developed by the Kenya National Highways Authority (KeNHA) to connect the port system with five counties by road. The counties are Busia, Siaya, Kisumu, Homa Bay and Migori.

Sustainable Development 

Lastly, a sustainable development model will need to be considered for the port facility, implying that the design will need to meet international standards but  also reflect the need to balance the environmental, social and economic needs of the location. Some   factors that could be considered  could include but not be limited to the operational efficiency and appropriateness of the various  technological requirements. The port layout and the design options would have to reflect  the projected traffic demands and other parameters influencing the financial and operational viability for the development, operations and maintenance requirements of the new port. 

We look forward to participating in some way in this exciting project.

Kennedy Gumbe 

www.trd.co.ke