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PUBLISHED ON February 2nd, 2015

UK Government increases investment at Mombasa Port through additional Kshs. 450 Million grant to TradeMark Africa

Nairobi-2nd February, 2015. The United Kingdom through the Department for International Development (DFID) has extended additional support to TradeMark Africa for its Mombasa Port Program. The grant agreement will make available an additional US$ 5 million (approximately KShs. 450 million) to support the dualling and improvement of the existing Port Reitz and Moi International Airport access roads. The UK government is already supporting TradeMark Africa with an investment of US $ 50 million (Kshs 4.5 billion) to implement the Mombasa Port Improvement Program.

Lisa Phillips, Head of DFID Kenya (Centre) exchanges grant agreement documents with Frank Matsaert, CEO TMA (Left) for additional support to TMA Mombasa Port Program, specifically to support construction of Port Reitz Rd in Mombasa. Looking on is Dr. Chris Kiptoo (right), TMA, Kenya Country Director.
Lisa Phillips, Head of DFID Kenya (Centre) exchanges grant agreement documents with Frank Matsaert, CEO TMA (Right) for additional support to TMA Mombasa Port Program, specifically to support construction of Port Reitz Rd in Mombasa. Looking on is Dr. Chris Kiptoo (Left), TMA, Kenya Country Director.

Port Reitz Road will reduce truck operating costs along the transport route, to and from Kipevu West Container Terminal. It will also reduce the time it takes to enter and exit the port gates by opening up the new gate 22 serving Kipevu West. This will accommodate approximately 30% of the traffic from the existing terminal.

The Port of Mombasa has over the years recorded significant growth in traffic volumes. In the last 10 years, traffic increased more than 6% per annum to 22.3 million tons in 2013. Container traffic grew faster on average by more than 8% p.a., rising to nearly 900,000 TEU in 2013 from 438, 597 TEU in 2004. KPA projects that the Port will handle 1,650,000 TEU by 2016.

It is envisaged that the Port Reitz Road is crucial to the Kipevu West Container Terminal as it will provide the only link with the new Container Terminal. The road will also be an important link to the existing Moi International Airport Road (C110) for traffic from the new Container Terminal to the Northern Corridor and the North Coast. It is also the only access to the Airport and is important for connecting passengers and goods to air transport.

As stated by the head of DFID Kenya, Lisa Phillips during the signing:
“DFID is extending an additional US$5m (Kshs 450 million) to further scale up the work that TMA is undertaking at the port of Mombasa and along the Northern Corridor; and specifically, to support the expansion and improvement of the Port Reitz – Airport Road. With this support, the UKAid’s support to improvements at the port of Mombasa now stands at US$55m (Kshs 5 billion). Together with our partners, we remain committed to supporting Kenya’s growth and poverty reduction efforts in line with Vision 2030”.

In his Statement TMA CEO, Frank Matsaert, said “The UK government is TMAs largest investor and continues to be a key ally in promoting regional and economic integration in East Africa. The Port Reitz Road is among many projects that TMA is spearheading through the UK government support to enhance trade environment in the region since East Africa has amongst the highest freight and transport costs in the world. These costs seriously erode the marginal competitiveness of goods exported by East African countries, reducing trade, economic growth, job creation and poverty reduction”.

Source: TradeMark Africa (TMA)

 

TradeMark Africa (TMA) is an aid-for-trade organisation that was established with the aim of growing prosperity in East Africa through increased trade. TradeMark Africa (TMA) operates on a not-for-profit basis and is funded by the development agencies of the following countries: Belgium, Canada, Denmark, Finland, the Netherlands, UK, and USA. TradeMark Africa (TMA) works closely with East African Community (EAC) institutions, national governments, the private sector and civil society organisations.

Disclaimer: The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of TradeMark Africa.