Delayed projects leave Kenya's blue economy limping

If everything had gone according to plan, last month, we would have launched Shimoni Port in Kwale County, Kenya’s first fish port.

The government has been struggling to implement both Shimoni and Liwatoni fish complex since 2018, meant for processing tuna, without much success.

Both projects are key to the development of Kenya’s blue economy. Fisherfolk who are eyeing Shimoni will now have to wait till June 2025 for the port to be ready.

The port’s first phase cost Sh2.6 billion. “Once finished, Shimoni will boost the fishing industry by increasing the handling capacity by 50,000 metric tonnes of fish annually, thereby promoting value addition for both domestic and export markets,” said President William Ruto.

The government seeks to grow the blue economy from the current Sh20 billion to Sh80 billion in five years.

The new seaport aimed to strengthen the fishing sector will feature a multi-purpose berth, a modern jetty, a warehouse, a fish market, cold storage facilities, reefer stations, and ice-making plants.

The transformation of the marine fisheries is expected to create thousands of jobs and stimulate the regional economy through increased investment in various industries, enhanced export manufacturing and expanded overall economic activity.

To increase fish production and facilitate the transition of fisherfolk to deep-water and Exclusive Economic Zone (EEZ) fishing, the government has procured and distributed 123 fishing boats to local communities.

It plans to acquire deep-sea fishing vessels for offshore fishing, with a total budget of Sh600 million allocated for this purpose.

Currently, the state is investing Sh2.7 billion in the construction of fish landing sites and markets equipped with cold chain storage facilities across the country, with Sh1.2 billion allocated specifically to the Coast region.

The government has set aside Sh1.7 billion in grants to support 612 fishing cooperatives and groups in the Coast region to increase the production of marine fisheries.

Meanwhile, the construction of the ultra-modern tuna fish hub at Liwatoni is on course. According to Coast regional commissioner Ms Rhoda Onyancha, phase one of the project with a combined cold storage capacity of 1000 metric tonnes is partly complete.

It has a fresh and frozen fish processing plant and a tuna cooking and canning plant all with associated electrical, mechanical and civil works.

“It is partly complete with two cold storage facilities each of 500 metric tonnes, a fresh and frozen fish factory of 100 metric tonnes per day, a tannery factory, and a water supply jetty having been installed and is 100 per cent complete awaiting commissioning,” she said.

Phase one of the project is set to create 3,000 direct jobs and hence open up fish processing in the Coast region.

In a statement, Ms Onyancha also explained that KPA has executed compensation agreements with all the 1,648 Project Affected Persons (PAPs) at the Mombasa Dongo Kundu Special Economic Zone (SEZ) who had a claim on the land.

She said 1,759 persons who had developments at Dongo Kundu have also been duly compensated and relocated by KPA.

“Payments began in August 2024. Currently, vocational training for 756 of the PAPs is ongoing for periods ranging between three and 18 months and transitional allowance based on the PAPs’ valued assets is to be paid after resettlement,” she explained.

At the same time, fishermen’s compensation of Sh316 million was also paid after the fisheries Department of Mombasa and Kwale Counties received and verified a list of members of the affected Beach Management Units (BMUs).

The project was conceptualized on August 28, 2016, when the Kenya and Japan governments signed a Memorandum of Understanding (MOU) for implementation through a phased approach, based on the Master Plan for Development of the Mombasa Dongo Kundu SEZ.

The government of Japan committed to financing the basic infrastructure of phase Ione of the SEZ through an ODA loan of Sh37.09 billion, a grant aid of Sh6 billion and Kenya government funding of Sh8.407 billion.

Currently, Taifa Gas is the only private investor with an ongoing project at the Mombasa Dongo Kundu SEZ with an expected completion date of September 2025.