Mudavadi calls for practical reforms to unlock investment in maritime sector

Prime Cabinet Secretary Musalia Mudavadi has urged the Government and private sector to collaborate on practical reforms to boost investment and employment in Kenya's maritime industry. Speaking at a Private Sector Business Roundtable in Nairobi, Mudavadi stressed the need for a stable business environment, addressing challenges faced by the sector and developing solutions to support long-term growth.

Mudavadi urged the Government to stop viewing the private sector as an opposition, instead working together to tackle issues and build solutions. He cautioned against arbitrary regulations that could undermine investor confidence, stating, "We cannot introduce arbitrary regulations before we understand the environment we are operating in."

The roundtable followed concerns from the Kenya Shipping Agents Association over provisions of the Maritime Transport Operations Regulations 2024. The engagement provided a platform for both Government and industry players to discuss the impact of the regulations and identify practical solutions. Mudavadi emphasized the importance of a collaborative framework to protect the sector's integrity and competitiveness.

To increase local participation in the maritime industry, Mudavadi suggested cross-listing shipping company shares on the Nairobi Securities Exchange and improving Kenya's position in global supply chains. He also called for reforms to liberalize the insurance sector by reviewing restrictions on foreign ownership.

Kenya's maritime sector is strategically important as a gateway to landlocked countries dependent on Kenyan transport corridors for cargo. Mudavadi highlighted the vulnerability of international trade networks due to the Middle East conflict and urged stronger partnerships to safeguard Kenya's maritime connectivity.

The roundtable also addressed employment and skills development within the Blue Economy, with Mudavadi calling for increased Government and industry partnerships to expand training and employment opportunities for young Kenyans. He noted that the Fourth Medium Term Plan targets training 3,000 Kenyan youths as seafarers in international shipping lines and urged the expansion of this target.

Mudavadi emphasized the need for tangible economic opportunities for the younger generation and encouraged participants to develop actionable recommendations to strengthen Kenya's maritime sector, attract investment, and enhance regional and global competitiveness.