Lamu Shifts Gears from Coastal Traditions to Thriving Industries

Lamu County, known for its rich Swahili culture and beautiful coastline, is quickly becoming an important industrial centre in East Africa. 

This change is driven by major investments in infrastructure, especially the Lamu Port, which is shifting the region’s economy from tourism and fishing to trade and industry. The Lamu Port is a key part of the Lamu Port-South Sudan-Ethiopia Transport (LAPSSET) Corridor. Since opening in May 2021, its first three berths have been operational and serving international shipping companies. 

Officials are optimistic about the port’s deep-water capabilities and modern facilities. Once the necessary access roads are completed, the port is expected to strengthen Kenya’s trade links with landlocked countries like Ethiopia and South Sudan, unlocking new economic opportunities in northern Kenya.

In addition to the port, Lamu is seeing growth in agro-industrial projects. One notable development is a Sh1 billion cotton ginnery in Bahati, Mpeketoni. This project, funded through partnerships, aims to increase cotton production and support local farmers as well as the national textile industry. Cabinet Secretary Lee Kinyanjui highlights that the ginnery fits with government plans to grow the domestic textile sector and reduce reliance on imports.

This cotton project is part of a broader push to diversify Lamu’s economy. The recent opening of the Hindi Cashew Nut Processing Factory and plans for the Diamond Seafood Fish Processing Plant show the focus on adding value to local products. Additionally, Kentaste is working to build a coconut milk and cream factory, further expanding agro-processing in the county. Some of these initiatives benefit from the UK-supported Industrial De-Risking Finance Programme, signalling international confidence in Lamu’s economic future.

The LAPSSET Special Economic Zone (SEZ) is also nearly ready, with several facilities built through public-private partnerships. Salim Bunu, LAPSSET Coast Regional Manager, explains that the SEZ aims to boost production, attract investment, and support small and medium-sized businesses. When the access roads are finished, connections to northern Kenya, Ethiopia, and South Sudan will improve significantly.

Local leaders have welcomed these changes. Governor Issa Timamy praises the projects for creating jobs and opportunities for young people, while County Commissioner Wesley Koech stressed the need for peace and stability to keep investors interested. The general view is that these investments are creating real economic benefits for residents.

The expansion of infrastructure and industry also supports security efforts in the area. Government officials say that developing remote regions, which have been vulnerable to Al-Shabaab attacks, will help reduce isolation and increase government presence.