Figure 3.3 Ongoing construction of Lamu Port

Lamu Commercial Port in Manda Bay has started operation with three berths completed out of the planned 24. The port is expected to handle 13.5 million tonnes by 2030 and about 24 million tonnes of cargo by 205015. The first three berths were constructed in collaboration with Chinese partners while other berths (up to 21 more) are intended to be constructed and operated by the private sector. The development of Lamu Port will allow for relief of the congested Port of Mombasa by providing deeper berthing channels and longer berths, and provide the opportunity to develop adjacent export-oriented manufacturing and agri-processing industries, amongst others, or those that make use of global value chains, within the Industrial Port zone.

Figure 3.3 - Ongoing construction of Lamu Port

Source: Atkins site visit The combined areas of the Commercial Port and the Industrial Port will incorporate the Special Economic Zone (SEZ) as part of the overall Lamu Port area. The Lamu Port area/SEZ is projected to expand and create a mixed-use industrial area ranging from logistics and light industries to medium and heavy industries which will provide land and infrastructure required to support agri-processing and manufacturing operations as well as logistics and service-related activities. The SEZ will provide an environment that attracts investment and adds value to the agricultural, livestock and fishing products supplied by the local communities.

This will capitalise on and help drive the Blue Economy potential of the area. Over 80% of traded international goods are transported by sea and this is expected to double by 2030 and quadruple by 2050 due to much of the food produce and items being traded through ports and rivers16. This presents an invaluable opportunity for Lamu to be a place where products are farmed, processed and manufactured to supply a major hub for export and import, and in doing so it will re-position itself once again at the heart of the East African trading centres and routes.

To support this economic transformation, the right infrastructure and investments are needed to enable the key economic sectors to thrive as well as to meet the needs generated by increased local demand from new industries, businesses and residents. The development of the Lamu node at LAPSSET is also anticipated to generate a population of up to one million inhabitants and create up to 425,000 jobs when the area reaches the completion of the full development phase17 which is clearly a significant level of development from its current semi-rural state to that of a metropolis. The water, sanitation and power utilities as well as improving transport connectivity will be a priority to enable industrial, commercial and city development to successfully take place, whilst supporting the growing local community. Moreover, the development of such a large port and industrial area could result in environmental degradation from pollution, change in land utilisation patterns, increased demand for natural resources, and effects to the unique and sensitive ecosystems of Lamu. The potential social and environmental impacts from future industries, businesses and urbanisation need to be appropriately managed to ensure long-term social, environmental and financial sustainability through stronger EIA regulations, detailed land use master plans, resettlement action plans and compensation schemes, and a strong corporate social responsibility policy.

Adopting a Blue Economy approach to LAPSSET development around the Lamu node that is beyond ‘business as usual’ will not only create significant job opportunities but will also safeguard key natural assets, including marine ecosystems, coastal resources and other ecologically sensitive areas.

15 Lamu County, Planning report for the Part Development Plan of the proposed LAPSSET Project Component Sites (2015). 16 UN Habitat, Background Report Blue Economy and Cities (2018). 17 Atkins Acuity, Lamu Port City Agreed Investment Framework (2017).