KPA banks on robust Lake Victoria trade to triple Kisumu cargo volumes

Kenya Ports Authority expects to more than triple cargo volumes handled at Kisumu since it was revamped in 2019, management has said, with a keen eye on Uganda.

This is on the back of growing trade volumes in the East African Community which remains Kenya's main export market, accounting for 70.2 per cent of the total revenues from Africa.

The value of exports to the EAC markets grew 35.1 per cent last year to Sh305.9 billion, the Economic Survey 2024 by the Kenya National Bureau of Statistics indicates, up from Sh226.5 billion.

KPA is eyeing a bigger share of the exports riding on growing volumes now being moved via the lake transport network, as traders seek to cut cost.

Lake transport has cut transport costs between Kisumu and Uganda by up to 30 per cent, according to Kenya Railways which is operating MV Uhuru, domiciled at the Kisumu Port.

Since re-opening after a Sh700 million revamp, cargo volumes handled at Kisumu have more than doubled, official data shows, with the latest being 125,503 tonnes handled this year to June.

This is about 2.7 times more compared to 46,220 tonnes handled in the same period in 2020, when the port became fully operational.

The number of vessels totalled 116 from 43, with Uganda being the main destination.

“During the period under review, there was an increase of 64,592.5 tonnes on cumulative cargo throughput as compared to the same period in 2023, which is equivalent to approximately 51.5 per cent,” port manager Charles Kitur said.

KPA projects volumes at the facility will surpass the 220,000 tonnes mark this year, buoyed by growing trade and a rise in the number of vessels plying the lake.

Six vessels namely MT Kabaka Mutebi II, MV Munanka, MV Orion II, MV Mango Tree and Orion III  are currently the main movers in the lake, with Kenya’s  MV Uhuru II which was recently commissioned expected to bring an additional 1,800 tonnes capacity.

The planned increase in the number of vessels now means a higher maritime capacity in the lake, which has a catchment area covering 193,000 square kilometres in Kenya, Uganda and Tanzania, as well as parts of Rwanda and Burundi.

Apart from Kisumu, other key ports serving Lake Victoria are Mwanza, Musoma and Bukoba in Tanzania, and Port Bell and Jinja in Uganda.

Kenya has also connected the Standard Gauge Railway to the Metre Gauge Railway at the Naivasha Inland Container Deport, allowing a seamless flow of cargo from Mombasa to Kisumu.

During the six months to June, Kisumu recorded 106 trucks mainly delivering cargoes for shipment through the lake, where petroleum products led by diesel, crude palm oil, cement, steel fertiliser, ceramic tiles and heavy machinery are the main exports.

Imports include sugar and iron sheets with Kisumu Port also handling LPG, beer and other foodstuffs.

“With the ever-growing demand for petroleum products in the transit market, another fuel tanker MT Kabaka Mutebi III will join the fleet of vessels plying Kisumu, port Bell, and Jinja ports,” KPA affirmed.

Uganda continued to be the leading destination of the country’s exports accounting for 29.0 per cent of the total export earnings from Africa in 2023, with a sizable amount of cargo going through the lake transport.

The Economic Survey shows total exports to this destination amounted to Sh126.3 billion, up from Sh97.2 billion the previous year.

“This was mainly occasioned by an increase in exports of cement clinkers, lubricants and products of iron and steel,” KNBS says in its report.

Exports to Tanzania and South Sudan rose by 20.7 per cent and 36.2 per cent from 2022 to Sh 69.3 billion and Sh32.0 billion in the review period, respectively.

This was partly on account of increased domestic exports of soap and medicaments to Tanzania and food preparations to South Sudan.

Fuel products business along Lake Victoria is tipped to be one of the largest bilateral trade engagements between Kenya and the region.

According to a study by the East African Community (EAC), the Lake Victoria basin’s potential also has a huge potential in fisheries and tourism.

Earnings from the Lake’s fish catch in the region are at $400 million (Sh51.6 billion) per year or slightly over $1 million (Sh129 million) per day.

Meanwhile, several manufacturers are eying the use of Kisumu Port to increase supplies into the markets of Kenya and Uganda.

Among them is Bidco Uganda which imports 60 to 80 per cent of its crude palm oil from Malaysia for the manufacturing of vegetable oil.

Bamburi Cement has also been keen to use the lake and its ports to move volumes into the regional markets, with a potential of 680,000 tonnes per day.