Nairobi has long touted Lake Victoria’s huge potential in cargo and passenger transport.
Kenya’s campaign to revive a multimodal transport system at Kisumu port to serve East and Central Africa is bearing fruit, with Uganda pledging to use the facility for its oil and loose cargo starting this month.
Nairobi, which pegged the operationalisation of the port on the completion of the complementary facilities in Uganda after sinking millions of dollars to revamp the old infrastructure and to refurbish cargo ferry MV Uhuru, projects to increase cargo handled in the facility this year.
The Kisumu port is part of the East African Community (EAC) infrastructure development plan, with a potential of generating $60 billion worth of trade annually, but is currently only bringing in about 10 percent of this to the three big EAC economies, Kenya Uganda and Tanzania.
Kenya's main port on Lake Victoria handled 125,503 tonnes compared with 60,910 tonnes in the same period last year.
Kisumu port manager Charles Kitur attributed the performance to critical upgrades that have enabled the facility to handle bulk cargo.
The efficiency of the inland port, which had been neglected for nearly three decades, has been boosted by the acquisition of critical equipment such as reach stacker, grove mobile crane, forklifts, trailers and marine boats.
“The upgraded facilities have improved the performance of the port and improved trade with the neighbouring countries like Uganda, Tanzania, Rwanda, Burundi and those in the Great Lakes Region,” Mr Kitur told The EastAfrican.
According to the latest report by the Kenya Ports Authority (KPA), the lake port handled 125,503 metric tonnes of cargo in the six months to June 2024, including 124,214 metric tonnes of exports and 1,288 metric tonnes of goods imported into the country.
Compared to the cumulative cargo throughput report for 2017, the port realised an increase of 122,072.1 metric tonnes from a paltry 3,431 metric tonnes that year.
According to KPA projections, the port is expected to surpass 200,000 metric tonnes in total cargo throughput in 2024.
In July 2024 alone, the port handled 34,375.2 tonnes of exports and no imports.
Commodities shipped to other East African markets during this period included gas oil (26,186.9 tonnes), ceramic tiles (3,603.8 tonnes), steel billets (3,217.5 tonnes) and bagged fertiliser (1,367 tonnes).
On the other hand, Kenya only imported iron sheets, according to the gateway manager.
Mr Kitur further noted that the refurbished port has rekindled the maritime transport corridor and increased the number of vessels calling at the facility, which has undergone a major facelift since 2019.
A Ugandan delegation led by the Minister in the Office of the President Akello Beatrice Akori, pledged her government’s use of the Kisumu oil jetty for the handling of its petroleum products and other loose cargo.
The minister witnessed the loading of 4.5 million litres of petroleum products onto the MV Kabaka Mutebi II, destined for Mahathi jetty in Uganda.
The number of vessels has increased from just nine in January this year to 22 in July.
“The port realised an increase of 63 vessel registrations as compared to the same period in 2023,” said Mr Kitur.
The vessels registered during the period under review include MV Uhuru, MT Kabaka Mutebi II, MV Munanka, MV Orion II, MV Mango Tree and Orion III.
The Uganda-flagged MT Kabaka Mutebi II had the highest number of trips at 41 percent, MV Orion II (27 percent), while Kenya-flagged MV Uhuru had 14 percent.
Speaking after completing their tour of the Northern Corridor with a visit to the Kisumu port, Ms Akori highlighted the benefits of utilising the lake for cargo, stating that it has significantly reduced road traffic and improved the reliability of fuel supply.
“Nearly 90 percent of the products handled at the Kisumu jetty are intended for Uganda, emphasising its crucial role in the country’s petroleum logistics,” she said.
KPA has also confirmed that MV Uhuru II, which is being assembled in the country, is expected to make its maiden voyage and significantly boost Kenya’s trade with other EAC countries.
MV Uhuru II has a capacity of 1,800 metric tonnes and is optimised to ferry both petroleum and bulk dry cargo, with modern engines giving it a cruising speed of 14 knots.
“With the evergrowing 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,” noted KPA.
“With the revamped facility, there will be enhanced capacity of the jetty, which has streamlined the importation process for Uganda, ensuring a steady supply of petroleum products.”
Uganda has set up a plan to ensure that the fuel reaches the Mahathi terminal in Entebbe and is transported farther by truck to neighbouring countries such as Rwanda, South Sudan, Burundi, and the Democratic Republic of Congo.
Meanwhile, the Kenya Pipeline Corporation (KPC) has announced plans to increase its operations when another fuel vessel arrives next month. The KPC said it would upgrade its systems to facilitate simultaneous loading of both trucks and vessels, responding to the rising demand for petroleum products in the region.
Kenya pumped about $7 million into the construction of a fuel jetty, feeder jetties and piers, shunting areas, berths, a terminal and yards, with administrative and Customs facilities in Kisumu, which Kenya wants position as a hub for inland maritime transport in East Africa.
The development of Lake Victoria ports is part of the EAC Inland Waterway Transport infrastructure agreed by partner states to link Uganda, Tanzania and Kenya to the Northern and Central transport corridors.
The three countries are seeking to revive connected ports and maritime operations on these shared waters to enhance integration and grow trade borders.
Kenya has been pushing its partners, especially Uganda, to help with this project by hastening implementation of the plan on its end to facilitate quicker and cheaper passage of goods, particularly fuel to the Great Lakes region and South Sudan.
Nairobi has long touted Lake Victoria’s huge potential in cargo and passenger transport.
It is also eyeing the $92.3 million Congolese market for its manufactured goods and sees a link with Uganda as key to actualising this.
The Kisumu port, together with other regional ports in Mwanza and Bukoba in Tanzania, Jinja and Entebbe in Uganda, and Muhoma Bay in Rwanda, present an alternative to the transport challenges on the Northern Corridor.
Kampala’s delay in completing the construction of an oil jetty on its side has frustrated Kenya’s efforts.
Mahathi Infra Uganda Ltd, a consortium of private investors, has been building a jetty on the Ugandan side which, once complete, will have a 14-tank storage facility with a capacity of up to 70 million litres of fuel, and 220-metre jetty.
There has been a reported improved uptake of cargo in Kisumu.
In the first half of 2024, the port handled 125,503 tonnes, a significant rise from 60,910 tonnes in the same period last year, marking a 51.5 percent increase, or 64,592 tonnes, according to data from the Kenya Ports Authority.
The number of vessel calls has also increased, with 116 calls by July, up by 63 from the same period in 2023.