This archive report was first published on 25 June 2021.
On June 25, 2021, Kenya took a major leap in its quest to become a shipbuilding hub and a leading maritime economy in Africa with the launch of the Kenya Shipyard Limited.
The agency, primarily tasked with construction, repair, and maintenance of shipping vessels, will also play a crucial role in developing local ship manufacturing, a key component of the Blue Economy agenda.
With the global market for ship construction estimated at USD 126 billion in 2020, dominated by South Korea (40%), China (25%), and Japan (15%), Kenya has the potential to tap into this lucrative market by enhancing its capacity to build modern vessels and reduce reliance on foreign-built ships.
As Africa's shipping and maritime sector remains underdeveloped, with the continent's share of world maritime exports at 7% and growing, investing in shipbuilding has the potential to transform African coastal states into maritime hubs.
Kenya's strategic location as the main shipping logistics hub of Eastern and Central Africa gives it a competitive advantage in shipbuilding and maritime engineering in the region.
The inauguration of the Kenya Shipyard Limited, coupled with the development of the Kisumu port and the marine academy in Kisumu, demonstrates Kenya's readiness to be a major player in maritime transport in the region.
Ship construction in Kenya is not a futuristic concept, with the MV Uhuru II, the first vessel to be constructed at Kisumu port in over 70 years, being built under a partnership between Kenya Shipyard Limited and a Dutch shipbuilding company, creating over 1,000 jobs.
By harnessing its maritime resources, Kenya can propel its industrialization agenda under the Vision 2030, improving shipping and maritime infrastructure, and creating a competitive advantage in the global market.
