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Kenya Ports Authority Strategic Plan 2023/24 to 2027/28, popular version. PDF page 3 sets the aim of making the Port of Lamu a commercial hub; PDF page 8 lists Fully Operationalize Port of Lamu alongside Mombasa projects. Downloaded from https://portal.kpa.co.ke/web-uploads/documents/4f91e558-9387-4d0a-9f7c-4c17d8665a84-KPA%20Strategic%20Plan%202023-24%20and%202027-28.pdf

Contributed as a source for Relocation of Container Operations to Lamu Port.

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KPA | STRATEGIC PLAN 2023/24 - 2027/28 POPULAR VERSION KENYA PORTS AUTHORITY STRATEGIC PLAN 2023/24 – 2027/28 POPULAR VERSION PB 1

| | | | KPA | STRATEGIC PLAN 2023/24 - 2027/28 POPULAR VERSION KENYA PORTS AUTHORITY STRATEGIC PLAN 2023/24 – 2027/28 POPULAR VERSION | | | | | | | |

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KPA | STRATEGIC PLAN 2023/24 - 2027/28 POPULAR VERSION Foreword The plan was developed through extensive analysis of global maritime trends and input from various stakeholders, including other innovative international ports, shipping companies, customers, and maritime stakeholders. This 5-year strategic plan is therefore guided by the Authority’s intent to achieve its Vision of “World Class Ports of Choice.” The strategy aims to deliver projects and initiatives that will solidify and cement KPA’s competitive edge, secure its profitability, and ultimately strengthen Kenya’s position as the gateway to East and Central Africa. It gives me great pleasure to introduce the Kenya Ports As an organization, we remain cognizant of our key role Authority Strategic Plan 2023/2024 – 2027/2028, in facilitating trade in the region through collaboration which outlines our strategic course for the next five with other players and agencies. We are committed years. This strategic plan recognizes the significant to understanding our stakeholders with their unique role KPA plays in facilitating seaborne trade for Kenya needs and expectations and engaging with them and the neighbouring countries of Uganda, Rwanda, through existing frameworks. We promise more robust Democratic Republic of Congo, South Sudan, Burundi, engagements as we move forward. I am convinced that Ethiopia, Somalia and Tanzania. This plan underpins the through collaboration, we can unlock our full potential and Authority’s commitment to unlocking the region’s growth deliver on our customers’ requirements into the future. potential through improving efficiency at the ports and Finally, this strategic plan is the product of an extensive developing its capacity in line with the region’s growing consultation process involving both internal and external trade demand. stakeholders. I recognize and appreciate the KPA Board, As outlined in the country’s Vision 2030, infrastructure has Management, and Strategic Planning Committee’s been identified as an enabler in achieving the aspirations unrelenting dedication and priceless contributions to of priority sectors. KPA’s mandate aligns with the vision the development of this strategic plan. We are confident by developing infrastructure that supports maritime that with the collective efforts and commitment of all transport. The development of this plan comes at a time stakeholders, we will be able to achieve the goals and when the country is expected to place a lot of focus and objectives set forth in this plan. Furthermore, we will resources on the Bottom-up Economic Transformation regularly review and assess the progress made to Agenda (BETA). This strategy outlines concrete actions ensure that we stay on track and make any necessary which directly align to BETA, focusing on the objectives adjustments along the way. of job creation and lowering the cost of living through projects such as the Dongo Kundu SEZ and initiatives to support the Blue Economy. KPA will also leverage on Hon. Benjamin Tayari continuous business process improvement and ICT to CHAIRMAN minimize inefficiencies in a bid to lower the cost of doing business which is firmly entrenched in BETA. 2 3

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KPA | STRATEGIC PLAN 2023/24 - 2027/28 POPULAR VERSION Preface This plan takes into account global shipping trends and emerging technologies in the maritime sector that are transforming port operations. To this end, we shall accelerate our digitization and automation efforts to drive port efficiency and productivity. We have made a commitment to upgrade the current Terminal Operating System (TOS) to a more digitally enhanced version that will help us achieve an end-to-end digitization of all port processes and one that will seamlessly integrate with all This Plan provides a roadmap in furtherance of our our stakeholders. We shall enhance safety standards mandate towards realizing our vision of world class ports at the port while also making sure we uphold our of choice. This Plan is a successor to the KPA Strategic environmental responsibilities as responsible corporate Plan 2018–2022, which was aligned to Vision 2030 and citizen. its Third Medium-Term Plan, and the Kenya Ports Master We have set out specific plans to grow the business in Plan (2018–2047). The Strategic Plan 2018–2022 terms of volume, market share, and financial base. During marked the first cycle of implementation of the Kenya this planning cycle, the focus will be on transforming Ports Master Plan. the Port of Lamu into a vibrant commercial hub. We The Authority’s strategic direction is guided by our vision, shall therefore equip and source for mutually beneficial “World Class Ports of Choice”, and our mission, which strategic partnerships that will guarantee the offtake is to “Provide Efficient and Competitive Port Services to of cargo through Lamu. In terms of markets, we have Facilitate Global Trade”. This strategy is driven by four deliberate strategies to expand our footprint in our strategic thrusts: customer focus, operational excellence, transit markets, with particular focus on Ethiopia and business growth, and good governance. This strategic the Democratic Republic of Congo (DRC). We remain approach is supported by our steadfast commitment to optimistic that these markets present us with a golden placing the needs of the customer at the centre of all we opportunity to cement our position as the hub port of do. We are optimistic that the initiatives that we have set choice in the region. out to pursue will not only positively impact our customers’ We understand that our employees will continue to be the experiences but will exceed their expectations. To this most crucial resource in carrying out our mission for us to end, we will, at the onset of this plan, invest in a modern succeed. We will therefore ensure our staff are engaged, Customer Engagement Centre that will be pivotal in empowered, recognised, and connected with our enhancing the customer experience. mission. To achieve this, we plan to roll out programmes The development of port infrastructure remains core specifically designed to support employee well-being, to the delivery of our mandate. In this plan, we have enhance talent, and foster leadership development while prioritised infrastructural projects based on thorough at the same time entrenching a performance management analysis of current and projected demands in the port system that recognises and rewards stellar performance. industry. By rehabilitating conventional cargo berths 1-10 Lastly, with the support and dedication of the and development of berth 19B, we aim to enhance our management, staff and our stakeholders, I am confident handling capabilities for a wide range of cargo types, that the Authority will be able to achieve and even surpass ensuring efficient operations and customer satisfaction. the set targets and play its role in trade facilitation in the Additionally, the development of the first berth at Dongo- region. Kundu and completion of Shimoni Port will expand our port’s capacity and attract new business opportunities, further solidifying our position as a competitive port Capt. William K. Ruto, AFNI service provider. MANAGING DIRECTOR 2 3

| This Plan provides a roadmap in furtherance of our mandate towards realizing our vision of world class ports of choice. This Plan is a successor to the KPA Strategic Plan 2018–2022, which was aligned to Vision 2030 and its Third Medium-Term Plan, and the Kenya Ports Master Plan (2018–2047). The Strategic Plan 2018–2022 marked the first cycle of implementation of the Kenya Ports Master Plan. The Authority’s strategic direction is guided by our vision, “World Class Ports of Choice”, and our mission, which is to “Provide Efficient and Competitive Port Services to Facilitate Global Trade”. This strategy is driven by four strategic thrusts: customer focus, operational excellence, business growth, and good governance. This strategic approach is supported by our steadfast commitment to placing the needs of the customer at the centre of all we do. We are optimistic that the initiatives that we have set out to pursue will not only positively impact our customers’ experiences but will exceed their expectations. To this end, we will, at the onset of this plan, invest in a modern Customer Engagement Centre that will be pivotal in enhancing the customer experience. The development of port infrastructure remains core to the delivery of our mandate. In this plan, we have prioritised infrastructural projects based on thorough analysis of current and projected demands in the port industry. By rehabilitating conventional cargo berths 1-10 and development of berth 19B, we aim to enhance our handling capabilities for a wide range of cargo types, ensuring efficient operations and customer satisfaction. Additionally, the development of the first berth at Dongo- Kundu and completion of Shimoni Port will expand our port’s capacity and attract new business opportunities, further solidifying our position as a competitive port service provider. |

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KPA | STRATEGIC PLAN 2023/24 - 2027/28 POPULAR VERSION Motto: Transforming Business, Enriching Lives

The KPA 2023/24- a) Port infrastructure development b) Port operations 2027/28 Strategic Plan c) Maintaining port facilities d) Aids to navigation It’s a 5-year plan covering the period 2023/24 – 2027/28 in line with the Kenya’s Medium-Term Plan (MTP IV) and e) Pilotage and other port services; and the Government’s Bottom-up Economic Transformation f) Regulation of port business Agenda (BETA). The Authority currently operates the Port of Mombasa, the Port of Lamu, Kisumu Port, other small ports as well 1.1 Strategic Direction as Inland Container Depots in Nairobi, Naivasha, Kisumu and Eldoret. KPA also operates ferry services along Likoni 1.1.1 Mandate and Mtongwe channels between Mombasa Island and the Mainland South. The Authority’s mandate is to develop, maintain, operate, improve, and regulate all sea and inland waterway ports in Kenya. In addition, the powers / functions of KPA are as provided in Sec. 12 of the KPA Act: 4 5

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KPA | STRATEGIC PLAN 2023/24 - 2027/28 POPULAR VERSION 1.1.2 Vision, Mission, Core Values “World-class ports “To Provide Efficient and of choice” Competitive Port Services to Facilitate Global Trade” Core Values Customer Focus: Service excellence is key to our operations and we endeavour to exceed customer expectations. Integrity: We uphold fairness, honesty, professionalism and transparency in all our undertakings. Teamwork: We embrace team spirit in all that we do. Care: We care for our staff, the communities around us and are sensitive to the environment Innovation: We are innovative and continuously create value for our customers 4 5

| | | Customer Focus: Service excellence is key to our operations and we endeavour to exceed customer expectations. Integrity: We uphold fairness, honesty, professionalism and transparency in all our undertakings. Teamwork: We embrace team spirit in all that we do. Care: We care for our staff, the communities around us and are sensitive to the environment Innovation: We are innovative and continuously create value for our customers |

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KPA | STRATEGIC PLAN 2023/24 - 2027/28 POPULAR VERSION 1.2 Strategic Goals and Outcomes Strategic Goal 1: To improve customer experience by providing responsive services that exceed customer expectations. Strategic Goal 2: To improve our competitiveness by enhancing productivity and efficiency in a safe and secure environment while leveraging on data and modern technology. Strategic Goal 3: To increase the volume of cargo through the Kenyan ports to sustain the Authority’s financial base. Strategic Goal 4: To build a result-oriented and ethical workforce backed by transformative leadership. Strategic Goal 5: To build strong partnerships and networks, with both private and government players, that are mutually beneficial and deliver value to our customers. 6 7

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KPA | STRATEGIC PLAN 2023/24 - 2027/28 POPULAR VERSION 1.3 Key Result Areas and Strategic Objectives Customer Focus • Attain customer satisfaction index of 75% Business Growth Operational • Increase common Excellence transit market share by 7% • Improve port • Increase profitability efficiency by 41% to KES 20 Billion by • Promote a safe and 2027/28 healthy working environment with zero accidents Good Governance • Increase employee productivity index to 2 • Promote 100% compliance to legal and regulatory requirements and good governance principles 6 7

| 1.3 Key Result Areas and Strategic Objectives Customer Focus • Attain customer satisfaction index of 75% Business Growth Operational • Increase common Excellence transit market share by 7% • Improve port • Increase profitability efficiency by 41% to KES 20 Billion by • Promote a safe and 2027/28 healthy working environment with zero accidents Good Governance • Increase employee productivity index to 2 • Promote 100% compliance to legal and regulatory requirements and good governance principles | |

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KPA | STRATEGIC PLAN 2023/24 - 2027/28 POPULAR VERSION 1.4 Strategic Initiatives End-to-end automation Collaborative frameworks Customer Relationship focusing on the entire management system logistics chain Dongo Kundu Berth 1 Re-development of Workplace Culture Change Berths 1-10 Programme Venturing into new markets Fully Operationalize Port Revamping of Ferry of Lamu Operations 8 9

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KPA | STRATEGIC PLAN 2023/24 - 2027/28 POPULAR VERSION 1.5 Strategic Outcomes 75% Customer Satisfaction Index – 2.2 days Container Ship Turnaround time – 38.95 million tonnes Total Throughput – 1.792 million TEUs Container Traffic – 13.218 million tonnes Transit Traffic – index of 2 Staff productivity KShs 20 Billion Profit – 8 9

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KPA | STRATEGIC PLAN 2023/24 - 2027/28 POPULAR VERSION 1.6 Outcome Performance Matrix Key Result Outcome Key Performance Baseline Target Area Indicator Mid-term End of Plan period target Period Target Value Year 2025/2026 2027 / 2028 Customer Enhanced Customer satisfaction index 71 2020/21 73 75 Focus customer % satisfaction Operational Faster Container ship turnaround 2.8 2021/22 2.5 2.2 Excellence Turnaround time (days) times Truck turnaround time 7.1 2021/22 4.9 2 (hours) Improved Crane productivity 17.4 2021/22 20.7 24 Productivity Berth Productivity (moves 36.7 2021/22 44 48 per ship per hour) Rail crane productivity 34.5 2021/22 40 45 (Moves per hour per train) Improved safety Accidents reduction (%) 400 2021/22 50% 0% standards Business Increased transit Common market share with 61.6 2021/22 64.0 68.6 Growth market share Port of Dar (%) Increased Total Revenue (KES Million) 51.359 2021/22 60Bn 65Bn revenues Bn Increased Container Traffic (TEUs) 1.435M 2021/22 1.690 M 1.792 M throughput Total Throughput (MTs) 33.620M 2021/22 36.357 M 37.735 M Transit Traffic (MTs) 9.523M 2021/22 12.286 M 13.475 M Transhipment Traffic (TEUs) 211,534 2021/22 337,740 381,216 Improved ROI Profit Before tax (KES 11.29Bn 2021/22 16.50 Bn 20.00 Bn position Million) Return on Investment (%) 3.3 2021/22 4.0 5.0 Reduced costs Staff costs as a percentage 36 2020/21 34 32 of revenue (%) Operational costs as a 78 2020/21 75 70 percentage of revenue (%) Good Improved Compliance Levels (%) 100 2021 100 100 Governance employee Human capital return on 1.5 2019/20 1.75 2.0 productivity investment Workforce competence TBD at - 90 100 Index (%) baseline % of staff meeting 61.43 2021/22 100 100 performance targets Employee satisfaction 61 2017 70 75 survey % Employee engagement TBD at - 70 75 index (%) baseline Improved Corruption perception index 4.17 2021 3.8 3.5 corruption perception Improved risk Risk Maturity Level Risk 2021 Risk Integrated Risk Integrated maturity defined Level 4 Level 4 10 11

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| Customer Focus | Enhanced customer satisfaction | Customer satisfaction index % | 71 | 2020/21 | 73 | 75 |

| Operational Excellence | Faster Turnaround times | Container ship turnaround time (days) | 2.8 | 2021/22 | 2.5 | 2.2 |

| | | Truck turnaround time (hours) | 7.1 | 2021/22 | 4.9 | 2 |

| | Improved Productivity | Crane productivity | 17.4 | 2021/22 | 20.7 | 24 |

| | | Berth Productivity (moves per ship per hour) | 36.7 | 2021/22 | 44 | 48 |

| | | Rail crane productivity (Moves per hour per train) | 34.5 | 2021/22 | 40 | 45 |

| | Improved safety standards | Accidents reduction (%) | 400 | 2021/22 | 50% | 0% |

| Business Growth | Increased transit market share | Common market share with Port of Dar (%) | 61.6 | 2021/22 | 64.0 | 68.6 |

| | Increased revenues | Total Revenue (KES Million) | 51.359 Bn | 2021/22 | 60Bn | 65Bn |

| | Increased throughput | Container Traffic (TEUs) | 1.435M | 2021/22 | 1.690 M | 1.792 M |

| | | Total Throughput (MTs) | 33.620M | 2021/22 | 36.357 M | 37.735 M |

| | | Transit Traffic (MTs) | 9.523M | 2021/22 | 12.286 M | 13.475 M |

| | | Transhipment Traffic (TEUs) | 211,534 | 2021/22 | 337,740 | 381,216 |

| | Improved ROI position | Profit Before tax (KES Million) | 11.29Bn | 2021/22 | 16.50 Bn | 20.00 Bn |

| | | Return on Investment (%) | 3.3 | 2021/22 | 4.0 | 5.0 |

| | Reduced costs | Staff costs as a percentage of revenue (%) | 36 | 2020/21 | 34 | 32 |

| | | Operational costs as a percentage of revenue (%) | 78 | 2020/21 | 75 | 70 |

| Good Governance | Improved employee productivity | Compliance Levels (%) | 100 | 2021 | 100 | 100 |

| | | Human capital return on investment | 1.5 | 2019/20 | 1.75 | 2.0 |

| | | Workforce competence Index (%) | TBD at baseline | - | 90 | 100 |

| | | % of staff meeting performance targets | 61.43 | 2021/22 | 100 | 100 |

| | | Employee satisfaction survey % | 61 | 2017 | 70 | 75 |

| | | Employee engagement index (%) | TBD at baseline | - | 70 | 75 |

| | Improved corruption perception | Corruption perception index | 4.17 | 2021 | 3.8 | 3.5 |

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KPA | STRATEGIC PLAN 2023/24 - 2027/28 POPULAR VERSION 2. Implementation 2.2.2 Excom 2.1 Partnerships and EXCOM is responsible for making collective Management decisions related to the day-to-day functions of the Collaborations Organisation and aligning the functions to the intended outcome of the Strategic Plan. As a strategic Maritime trade facilitator, KPA collaborates 2.2.3 Employee with key Partner Government Agencies(PGAs) to support a unified approach and effectiveness towards achieving The employee is expected to employ his or her skills ease of doing business. and efforts to execute various projects and initiatives as 2.2 Roles and Responsibilities outlined in the Strategic Plan. 2.2.1 Board 2.2.4 Stakeholder The Board is responsible for providing strategic direction Implement the obligations within the SLAs and facilitative towards alignment of all corporate plans and the annual processes to streamline port services performance contracting targets to the outcome of the Strategic Plan. 10 11

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KPA | STRATEGIC PLAN 2023/24 - 2027/28 POPULAR VERSION Corporate Contacts Kenya Ports Authority Administration Block, Kipevu P.O. Box 95009 - 80104 Mombasa Telephone: +254-412112999 | +254-412113999 Mobile: 254-709092999 | +254-709093999 +254-730653999 www.kpa.co.ke 12 PB

| KPA | STRATEGIC PLAN 2023/24 - 2027/28 POPULAR VERSION Corporate Contacts Kenya Ports Authority Administration Block, Kipevu P.O. Box 95009 - 80104 Mombasa Telephone: +254-412112999 | +254-412113999 Mobile: 254-709092999 | +254-709093999 +254-730653999 www.kpa.co.ke 12 | | | | | | | | | | | | | | |

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| | | | | | Corporate Contacts Kenya Ports Authority Administration Block, Kipevu | | | | | | | | | |

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Project
Relocation of Container Operations to Lamu Port
The Relocation of Container Operations to Lamu Port is a project within the Ports & Logistics theme.

KPA Strategic Plan 2023 2028 popular version