It will cost the Kenya Ports Authority (KPA) Ksh17.4 billion to complete the construction of the Lamu Port and buy equipment for full capacity operations.
The amount, which is not readily available at the moment, will be borrowed from both international and local lenders.
Ksh12.4 billion will be borrowed from both local and foreign banks, while Ksh5 billion will be acquired internally.
The Ksh5 billion acquired internally will be used to purchase general equipment security and ICT installations.
On the other hand, Ksh3.2 billion will be used to complete construction works at the port while Ksh3.1 billion will be used to purchase marine equipment.
Ksh6.1 billion will be used for yards operations.
“Completion of construction of the project is expected on October 21 (subject to adequate funding) and the action plan for operalisation of the completed project on a bare minimum equipment has an estimated expenditure of Ksh17,400 million,” KPA managing director John Mwangemi said.
In May, President Uhuru Kenyatta officially commissioned the operationalisation of the first berth of the new Lamu Port.
The Port will now be looking to operationalise the second and third berth upon acquisition of the funds.
The project, which is part of the Lamu Port South Sudan Transport corridor (Lapsset) is expected to propel Kenya to be a transport and commercial hub.
The port was first conceptualised in 1972 but shelved until retired President Mwai Kibaki came to power, when it was revived before the government silently switched off again.
In 2018, the construction was revived with the hope that South Sudan and Ethiopia would focus on to making it viable.