Mombasa: Kenya’s financial institutions and the private sector have been challenged to move beyond traditional lending models and begin actively financing the country’s shipping and maritime economy, a sector described as a ‘sleeping giant’ with the potential to create jobs, attract investment, and accelerate economic growth. The Principal Secretary (PS), State Department for Shipping and Maritime Affairs, Mr. Aden Millah, emphasized that Kenya cannot achieve its ambition of becoming a competitive, industrialized, and prosperous economy without unlocking the enormous potential of the maritime sector.
According to Kenya News Agency, speaking at Bandari Maritime Academy during the FY 2027/28 and Medium-Term Expenditure Framework Stakeholders’ Engagement Forum, PS Millah called for stronger collaboration between the government, private investors, financial institutions, development partners, counties, academia, and industry players. He highlighted the need for financial institutions to understand and support maritime investments, viewing the sector as a major economic ecosystem capable of generating employment, expanding the tax base, increasing foreign exchange earnings, and supporting industrialization.
Kenya’s strategic location provides a significant advantage in global trade, with approximately 640 kilometers of coastline, territorial waters covering about 9,700 square kilometers, and an exclusive Economic Zone of about 230,000 square kilometers. Despite this advantage, a significant proportion of the country’s maritime potential remains underexploited. Opportunities range from international shipping, maritime transport and logistics to shipbuilding and repair, cargo handling, and maritime tourism.
The call for financial institutions to take a more prominent role comes as the government seeks to expand Kenya’s shipping capacity, maritime infrastructure, and human capital. The sector requires long-term capital to support infrastructure, vessels, logistics, ship repair, and other maritime value chain businesses. Mr. Millah stressed the importance of creating an environment where private capital complements public investment, encouraging innovation and offering clear and predictable opportunities for investors.
The government has set ambitious goals through the Vijana Baharia Programme, aiming to train 35,000 seafarers, facilitate recruitment and placement of 20,900 Kenyan seafarers, and provide sea-time opportunities to 14,500 seafarers. The programme has already trained 9,969 seafarers and secured employment for 7,457 individuals, presenting financial institutions with opportunities to finance the maritime skills ecosystem.
In addition to coastal projects, the government plans to advance maritime transport and investment projects covering Kenya’s lakes and inland waterways. These projects offer potential investment opportunities for various financial stakeholders in infrastructure, logistics, and transport. Strengthening Kenya’s national shipping capacity through initiatives like Project Mashariki and expanding the KENSHIP Registry is also a priority.
Mr. Millah urged a shift from simply allocating resources to financing results, challenging stakeholders to ensure investments produce measurable economic value, including jobs and increased foreign exchange earnings. With 95 per cent of Kenya’s international trade conducted by sea, the focus is on how quickly the country can finance, build, and commercialize its maritime opportunity.
