Mudavadi calls for practical reforms to unlock investment in maritime sector

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Prime Cabinet Secretary and Cabinet Secretary for Foreign and Diaspora Affairs Musalia Mudavadi has called for practical reforms and stronger Government-private sector partnerships to unlock investment, create jobs and enhance Kenya’s participation in the global maritime economy.

Mudavadi said Kenya must establish a predictable and competitive business environment that enables investors to operate confidently while positioning the country as a key maritime and logistics hub in the region.

Speaking during a Private Sector Business Roundtable with representatives of the shipping and maritime industry in Nairobi, Mudavadi said the Government and private sector must work together to address challenges affecting the sector and develop solutions that support long-term economic growth.

“Government must never look at the private sector as opposition. We are supposed to team together to deal with the issues at hand,” he said.

Mudavadi said the private sector plays a critical role in driving the economy and creating employment, cautioning that unpredictable or arbitrary regulations could undermine investor confidence and compromise Kenya’s competitiveness.

“We cannot introduce arbitrary regulations before we understand the environment we are operating in,” he said.

The roundtable followed concerns raised by the Kenya Shipping Agents Association (KSAA), which represents shipping lines, ship owners and charterers incorporated in Kenya, over provisions of the Maritime Transport Operations Regulations, 2024.

Mudavadi said the engagement provided an opportunity for Government and industry players to examine the challenges arising from implementation of the regulations and identify amicable and practical solutions.

He emphasised the need for a collaborative framework that would support investment while safeguarding the integrity and competitiveness of Kenya’s maritime sector.

“Our objective is to find solutions to protect the integrity of our maritime sector,” said Mudavadi.

He said Kenya must also increase its participation in the maritime industry by creating opportunities for local investors to benefit from the sector, including exploring pathways for Kenyan participation in shipping companies and related businesses.

Mudavadi cited the possibility of cross-listing shares of shipping companies on the Nairobi Securities Exchange as one avenue through which Kenyans could participate directly in investment opportunities within the maritime sector.

He further called for access to international best practices and consideration of reforms that could strengthen Kenya’s position within global supply chains, including measures to liberalise the insurance sector by reviewing restrictions on foreign ownership.

The Prime Cabinet Secretary said the reforms should form part of a broader conversation on Kenya’s economic trajectory beyond Vision 2030.

“We cannot enter and conclude beyond Vision 2030 while still grappling with regulations,” he said, urging stakeholders to develop a shared blueprint for Kenya’s future.

Mudavadi noted that Kenya’s maritime sector has strategic regional importance, particularly given the country’s role as a gateway to landlocked countries that depend on Kenyan transport corridors for the movement of cargo.

He said South Sudan, Uganda, Burundi, Ethiopia, eastern Democratic Republic of Congo and Rwanda rely substantially on the Kenyan route for inbound and outbound cargo, stressing the need to strengthen the resilience and competitiveness of the country’s ports and transport corridors.

Mudavadi said the ongoing conflict in the Middle East and its impact on global shipping and trade had demonstrated the vulnerability of international trade networks and the need for stronger partnerships to safeguard Kenya’s maritime connectivity.

“The Middle East conflict reminds us that the resilience of international trade cannot be taken for granted,” he said.

The meeting also focused on employment and skills development within the Blue Economy, with Mudavadi calling for stronger partnerships between Government and the shipping industry to expand training and employment opportunities for Kenyan youth.

He noted that the Fourth Medium Term Plan (2023–2027) targets the training and recruitment of 3,000 Kenyan youths as seafarers in international shipping lines.

Mudavadi said Kenya should scale up the target by drawing lessons from countries such as the Philippines, which has developed a large pool of seafarers participating in the global maritime industry.

“We need to increase Kenya’s participation in the maritime sector,” he said.

Mudavadi also called for meaningful participation of Kenyans in the maritime economy, noting that the younger generation was demanding partnerships that provide tangible economic opportunities.

“Kenyans are saying they are not satisfied with tokens. They need to see genuine partnerships. Let us make it realistic for everyone to benefit from the ecosystem,” he said.

Mudavadi encouraged participants to use the roundtable to move beyond discussion and develop practical and actionable recommendations that would strengthen Kenya’s maritime sector, attract investment and enhance the country’s competitiveness in regional and global trade.

The roundtable brought together Government officials, Parliament, the shipping and maritime industry and private-sector stakeholders to deliberate on regulatory reforms, maritime trade connectivity, investment, skills development and employment.

Reporting originally appeared via KBC Digital. Read the full source for additional context.