Inside Sh104b Mombasa port expansion plan

French shipping giant CMA CGM will invest a whopping Sh104 billion in the renovation of two major container terminals in a quest to modernise the Port of Mombasa.

This is the latest move by shipping giants to partner with Kenya to expand the port. Dutch giant AP Moller-Maersk is also strengthening its partnership with the Kenya Ports Authority (KPA). In February 2026, Maersk and KPA agreed to boost the use of the Naivasha Inland Container Depot for handling fresh produce exports. Maersk leads the Mombasa port business, handling approximately 30 per cent of the port’s total container throughput as of 2025.

As Maersk expands its logistics footprint into the hinterland, CMA CGM has committed an $800 million (Sh104 billion) investment to develop a new terminal in Mombasa.

In a significant boost to Kenya’s logistics sector, President William Ruto and his French counterpart Emmanuel Macron witnessed the signing of eleven bilateral agreements worth over $1 billion (Sh129 billion), with the flagship being the Sh104 billion joint venture focused on modernising and expanding the Port of Mombasa.

This partnership targets the renovation of two major container terminals, upgrades to handle larger post-Panamax vessels, and broader improvements to logistics networks.

Players in the maritime industry were quick to add their voices to the latest developments involving the French shipping and logistics giant and the Kenyan government.

“This is not mere ribbon-cutting diplomacy. It is a timely and pragmatic response to Mombasa’s growing pains. The port has seen robust cargo growth—handling over 2.1 million TEUs in 2025 amid surging regional demand—but has been plagued by persistent congestion, vessel delays, equipment shortages, and inefficiencies that have frustrated traders and raised costs across East and Central Africa,” Andrew Mwangura, former secretary general of the Seafarers Union of Kenya (SUK), said.

He said Mombasa remains Kenya’s premier gateway to the world and a critical lifeline for landlocked neighbours, including Uganda, Rwanda, South Sudan, and the eastern Democratic Republic of Congo.

“Upgrading its capacity directly supports the Bottom-Up Economic Transformation Agenda, the African Continental Free Trade Area, and Kenya’s ambition to become a middle-income economy and regional logistics powerhouse. Enhanced port efficiency will lower the cost of doing business, attract more shipping lines, create jobs in construction, operations, maintenance, and ancillary services, and stimulate related sectors such as trucking, warehousing, and manufacturing,” Mwangura said.

Maritime said CMA CGM’s involvement in the port upgrade agenda brings more than capital. As one of the world’s leading container shipping groups, they said, it contributes global expertise, operational discipline, modern terminal management practices, and stronger integration into international supply chains.

This public-private collaboration model—building on CMA CGM’s existing presence in Kenya since 2005—offers a pathway to sustainable efficiency gains that purely public-led projects have sometimes struggled to deliver.

This deal, according to an analyst who sought anonymity, does not exist in isolation.

“It forms part of a wider reset in France-Kenya relations and President Macron’s efforts to reposition France as a relevant partner in Africa beyond traditional Francophone spheres,” the analyst stated.

Mwangura said for Kenya, diversifying partnerships beyond traditional donors and lenders is smart realpolitik.

He noted that France brings technology, investment appetite, and experience in large-scale maritime infrastructure, while Kenya brings a stable democratic anchor in East Africa, a youthful population, and strategic Indian Ocean positioning.

The agreements also extend into energy, rail modernisation, digital infrastructure, agriculture, and the blue economy, signalling a holistic approach rather than a single-project focus.

“Yet optimism must be tempered with vigilance. Kenya has a mixed record on large infrastructure deals. Past port-related controversies—ranging from debt concerns with other partners to questions of transparency and local content—underscore the need for robust oversight,’’ Mwangura said.

Key questions, however, remain over the exact equity structure, revenue-sharing model, and concession terms governing this joint venture.

It remains to be seen how Kenyan workers, SMEs, and suppliers will be prioritised in procurement and skills transfer; whether the project will genuinely expand capacity or merely transfer management of existing assets; and how environmental and community impacts along the coast will be managed responsibly.

“The government must publish clear implementation frameworks, enforce performance benchmarks with penalties for delays, and ensure independent audits. Regional stakeholders, especially transit countries, should have visibility to align expectations,’’ Mwangura said.

“Critics who frame this project purely through a geopolitical lens—as France ‘returning’ amid Sahel challenges or securing Indian Ocean influence—risk missing the bigger picture. Sovereign nations pursue interests; Kenya’s interest lies in delivering tangible development for its citizens. The test will be results on the ground: faster cargo turnaround, lower logistics costs, and measurable job creation.”

He reiterated that in an era of global uncertainty, protectionism, and shifting supply chains, securing high-quality investment in critical infrastructure is a win.

“If executed with transparency, competence, and a long-term national interest mindset, this $104 billion partnership could mark a turning point—transforming Mombasa from a chronically congested port into a competitive regional hub that drives inclusive growth across East Africa,” Mwangura said.

Kenya has the ambition. The coming years will test whether it also has the governance muscle and execution discipline to turn this promising agreement into lasting prosperity.

“For the sake of the millions who depend on efficient trade corridors, let us demand—and support—nothing less than excellence in delivery. The tide is shifting at Mombasa. Kenya must now captain the ship skilfully,’’ added the former SUK official.