A private investment push to raise KSh 780 billion for the Lamu Port–South Sudan–Ethiopia Transport (LAPSSET) Corridor is set to test whether global and local investors are willing to finance East Africa’s next phase of trade infrastructure.
- •Afri Fund Capital plans to issue debt across multiple markets, with listings on the Nairobi Securities Exchange (NSE) and the London Stock Exchange (LSE) alongside a third exchange in the Middle East or Asia.
- •The structure will allow investors to fund construction upfront in exchange for returns generated over time from corridor revenues such as port handling, freight movement, and logistics services.
- •The model opens infrastructure investment to domestic pension funds and retail investors, positioning Nairobi as a platform for raising large-scale project financing tied to regional trade.
The funding will target the most commercially critical gaps in the corridor, including road links from Lamu into northern Kenya and the extension of rail infrastructure toward Ethiopia. While sections such as the Isiolo–Moyale highway are complete, the connection between the coast and the hinterland remains incomplete, limiting the corridor’s ability to move cargo efficiently.
The funding will be consequential at a time when activity rises at Lamu Port. The port recorded a sharp increase in throughput, with cargo volumes rising from about 74,000 tonnes in 2024 to nearly 800,000 tonnes in 2025. Recent vessel arrivals have been driven in part by global shipping disruptions in the gulf region due to the war in Iran.
Ethiopia currently depends heavily on Djibouti for maritime trade, creating both cost pressures and concentration risk. A functioning Lamu corridor would diversify access, reduce transit times and open a second gateway to international markets. Kenya, in turn, stands to capture transit trade and position Lamu as a regional logistics hub.
The financing plan also comes as both governments intensify coordination to make the corridor operational. Kenya and Ethiopia are already aligning customs procedures, freight tracking systems, and border operations at Moyale to support cross-border movement once infrastructure gaps are closed.
The model shifts the burden of financing away from governments and toward private capital at a time when Kenya is under pressure to contain public debt.
