Kenya Shipyards Limited has proposed the construction of a major ship repair facility at the Port of Mombasa as part of plans to expand its operations into the Indian Ocean maritime market, the state corporation announced during a parliamentary inspection on Friday, November 6, 2026.
The proposal centres on a graving dock—a specialised facility where vessels are brought out of the water for repairs and maintenance—designed to accommodate ships measuring between 185 and 285 metres. According to the corporation, the facility could handle up to 32 ship repair contracts annually, a significant leap from its current capacity of accommodating only five vessels at a time.
The expansion is being considered amid concerns that ships operating in the Indian Ocean have limited access to adequate repair facilities within the region, positioning Kenya to capture a share of the growing maritime servicing market.
The development plans were presented to the National Assembly Committee on Defence, Intelligence and Foreign Relations during an inspection of the state corporation’s Kisumu shipyard, although the estimated cost of the project was not disclosed. Lawmakers also examined other expansion plans, including proposed passenger ferry services on Lake Turkana.
The plans come as Kenya Shipyards, established in 2020, has been steadily expanding its capacity to manufacture, maintain and repair vessels locally. One of its notable projects was the construction of MV Uhuru II, a 100-metre cargo vessel valued at Ksh2.4 billion, which has been operating on Lake Victoria since September 2024, transporting cargo between Kisumu Port and Uganda’s Port Bell.
The corporation has also acquired fibre-laser cutting machines, robotic welding systems and technology for manufacturing High-Density Polyethylene boats to strengthen local production capacity. Head of Production Brigadier Peter Muthungu told the committee that direct engagement with equipment suppliers had reduced costs from Ksh718 million to Ksh366 million.
Despite these initiatives, lawmakers questioned the corporation’s continued reliance on government funding despite managing projects worth Ksh6.22 billion. Management explained that payments are made in stages upon completion of agreed project milestones, creating gaps between the time money is spent and when revenue is received. Mandera North MP Abdullaih Bashir challenged the corporation to achieve financial independence within the next two financial years.
The proposed expansion comes as Mombasa Port faces growing scrutiny over its performance, after the World Bank ranked it among the world’s worst-performing ports in its 2024 assessment, citing congestion, administrative delays and operational inefficiencies. The new repair facility could form part of broader efforts to revitalise the port’s fortunes and cement Kenya’s position as a regional maritime hub.
