Prime Cabinet Secretary and Cabinet Secretary for Foreign and Diaspora Affairs Musalia Mudavadi has called for practical regulatory reforms and stronger government-private sector partnerships to attract investment, create jobs and strengthen Kenya’s position as a regional maritime and logistics hub.
Mudavadi said Kenya needs a predictable and competitive business environment that gives investors confidence while enabling the country to maximise opportunities in the maritime economy.
Speaking during a private sector business roundtable with representatives of the shipping and maritime industry in Nairobi, Mudavadi said government and industry players must work together to address challenges affecting the sector and develop practical solutions.
“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 warns against unpredictable regulations
Mudavadi cautioned against introducing regulations without fully understanding their impact on businesses, saying unpredictable policies could undermine investor confidence and Kenya’s competitiveness.
“We cannot introduce arbitrary regulations before we understand the environment we are operating in,” he said.
The meeting followed concerns raised by the Kenya Shipping Agents Association over provisions contained in the Maritime Transport Operations Regulations, 2024.
Mudavadi said the engagement provided an opportunity for the government and industry to assess challenges arising from implementation of the regulations and identify practical solutions that protect the integrity and competitiveness of Kenya’s maritime sector.
“Our objective is to find solutions to protect the integrity of our maritime sector,” he said.
Kenya seeks greater local participation
Mudavadi said Kenya should create more opportunities for local investors to participate directly in shipping and related maritime businesses.
He cited the possibility of cross-listing shares of shipping companies on the Nairobi Securities Exchange as one avenue through which Kenyans could gain direct access to investment opportunities in the sector.
The Prime Cabinet Secretary also called for greater access to international best practices and reforms that could strengthen Kenya’s role in global supply chains.
Among the proposals was a review of restrictions on foreign ownership in the insurance sector to support greater investment and competitiveness.
Mudavadi said such reforms should form part of a broader national conversation on Kenya’s economic direction beyond Vision 2030.
“We cannot enter and conclude beyond Vision 2030 while still grappling with regulations,” he said.
Maritime sector key to regional trade
Mudavadi said Kenya’s maritime sector has strategic importance because the country serves as a gateway for several landlocked countries that depend on its ports and transport corridors.
He cited South Sudan, Uganda, Burundi, Ethiopia, eastern Democratic Republic of Congo and Rwanda among countries that rely substantially on Kenyan routes for inbound and outbound cargo.
He said strengthening the resilience and competitiveness of Kenya’s ports and transport corridors was therefore critical to regional trade.
Mudavadi also pointed to disruptions caused by the ongoing conflict in the Middle East as evidence of the vulnerability of global shipping and trade networks.
“The Middle East conflict reminds us that the resilience of international trade cannot be taken for granted,” he said.
Government targets more maritime jobs for youth
The roundtable also focused on employment and skills development under the Blue Economy, with Mudavadi calling for stronger government-industry partnerships to expand training and employment opportunities for Kenyan youth.
He noted that the Fourth Medium Term Plan covering 2023–2027 targets the training and recruitment of 3,000 Kenyan youths as seafarers in international shipping lines.
Mudavadi said Kenya should consider increasing the target by drawing lessons from countries such as the Philippines, which has developed a large pool of seafarers working in the global maritime industry.
“We need to increase Kenya’s participation in the maritime sector,” he said.
He also said young Kenyans were seeking partnerships that provide meaningful economic opportunities rather than symbolic participation.
“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 urged participants to move beyond discussions and develop practical recommendations that can attract investment, create employment and improve Kenya’s competitiveness in regional and global trade.
The roundtable brought together government officials, Parliament, shipping and maritime industry representatives and private-sector stakeholders to discuss regulatory reforms, maritime connectivity, investment, skills development and employment.
