Why Sh1.4b cruise ship terminal is yet to bear fruit for Kenyans

The client brief was to design and construct a fully-fledged modern cruise terminal at the Port of Mombasa unparalleled in the region.

And in 2021, the contractor delivered a terminal with a 2,000-passenger lobby capacity, shops, a restaurant, and a conference hall at Sh1.4 billion.

Three years later, Kenya has not attracted much cruise ship business, like Seychelles and South Africa. Analysts say inadequate marketing strategies, insecurity and port policies on levies have forced the cruise ships to give Mombasa a wide berth.

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Data from Kenya Ports Authority KPA indicate that five cruise ships visited Kenya in 2023 compared to 43 in Durban, South Africa. 

As cruise lines move their ships nearer to the US, the world’s top market, ahead of the start of this year’s season tourism stakeholders at the Coast are keenly watching whether Kenya will be part of their voyage. 

Traditionally, the weather and holidays influence how seasons vary from region to region. On the west of the Indian Ocean, including Kenya, the cruising season is from November to April.

However, cruise ships can also change deployment areas known as repositioning during the months of March-April and September-October. Tourism analysts say that despite the completion of the modern terminal in Mombasa three years ago, few activities at the facility.

They say the tourism marketer, Kenya Tourism Board (KTB) is struggling to scale up cruise ship rotations into Mombasa Port.

Dr Sam Ikwaye, chair of the newly established Mombasa Tourism Council (MTC), says Mombasa needs aggressive marketing as a key cruise port of call. “Marketing with the big players is vital. We must invest, collaborate, and offer more incentives to cruise liners to call at the Port of Mombasa,” Dr Ikwaye said.

Kenya Ships Agents Association (KSAA) estimates that the country can make up to US$20 million (Sh2.5b) from 40 cruise ships calling at the port of Mombasa.

It says benefits accrued from the 400 cruise tourists are equivalent to 4,000 tourists who come to the country via air because of their high spending power and related levies.

In 2004, at least 42 cruise ships arrived in Mombasa, with 15,166 passengers to visit various destinations like Masaya Mara and Tsavo national parks, earning the sector millions of shillings.

But the number dropped as piracy took over in the Indian Ocean, with 2012 being the worst since not a single vessel called at Mombasa port.

KTB has identified cruise tourism as one of the key experiences that Magical Kenya destinations and the Kenyan Coast offers. It acknowledges that aggressive marketing was necessary to reach the levels seen in 2002. During last year’s inaugural meeting at the Mombasa Serena Beach Resort & Spa, KTB brought together stakeholders to break the ice over cruise tourism development in Kenya. By 2023, five cruise liners had visited the Port of Mombasa, bringing around 2,500 passengers.

READ: Cruise ship terminal launched at Mombasa Port

Offshore neighbours, the Seychelles, have had their cruise tourism industry described as very positive. In the 2023–2024 season, Seychelles received 40 calls from 21 ships with 68,000 visitors.

In the 2024–2025 cruise season, Seychelles had 38 port calls from cruise liners, and in 2019-2020 Port Victoria recorded 39 cruise ship calls. Dr. Pius Obunga, a consultant for the United Nations Economic Commission for Africa (UNECA), said in recent articles that cruise tourism in Seychelles is positive.

He stated, “The cruise season significantly contributes to the economy of Seychelles, but it is essential to minimise costs and maximize profits.”

Allan Rading, a Mombasa-based tour operator, urged Kenyans to create incentives to attract more cruise liners and super yachts to Mombasa, Lamu, and the Old Port.

He said cruise ships arriving at the Port of Mombasa should waive port levies or reduce charges and tourists on board to maximise their spending while in Kenya.

ALSO READ: New arrivals revive key cruise ship terminal at Mombasa port

Mr Rading called for collaboration between port administration, local cruise ship handling agents and the County government of Mombasa to ensure a vibrant, clean, and crime-free city.

In the late 90s, a small luxurious cruise liner, MS Royal Star, that used to be owned by the now defunct African Safari Club (ASC) was homeported at the Port of Mombasa.

Though relatively small, MS Royal Star, which changed ownership and renamed MS Ocean Mist was a sight to behold with its weekly cruise itineraries out of Mombasa to the exotic island destinations of Zanzibar, Pemba, Grand Comoros, Madagascar, and the Seychelles.

KTB is proposing a cruise tourism coordination platform to enhance development, showcase onshore experiences, and create promotional brochures, catalogs, and videos.

The lead marketing agency in its cruise tourism development and promotion strategy aims to be a leading cruise destination in East Africa with clear goals of having 100,000 cruise arrivals by 2040, creating some 1600 and generating upward of $100 million in revenues.