Lamu Water Desalination Plant

Project Description & Rationale

The Lamu Water Desalination Plant is a major initiative under Kenya’s water & sanitation sector, designed to address the chronic water shortage in the Lamu County coastal region. Key motivations include:

  • Severe shortage of potable water for domestic, commercial, and industrial users.

  • Growing water demand due to population growth, tourism, and infrastructure, especially linked to the LAPSSET (Lamu Port-South Sudan-Ethiopia Transport) corridor. PPP Kenya+2Traso Limited+2

  • Coastal environmental stresses (saltwater intrusion, limited fresh groundwater) and changing rainfall patterns intensify the need for reliable, alternative water supply sources. Traso Limited+2Desalination+2


Key Project Metrics

Metric Detail
Location Lamu County, Kenya (serving Lamu Town, LAPSSET zone, and environs) PPP Kenya+1
Contracting Authority Ministry of Water, Sanitation & Irrigation, Kenya PPP Kenya
Private Partner Rasli Bahari Kenya Ltd PPP Kenya+2Traso Limited+2
Project Type Public-Private Partnership (PPP), Build-Operate-Transfer (BOT) model, 30‐year contract term PPP Kenya+1
Capacity / Output 120,000 m³/day of potable water in initial design/construction phase. PPP Kenya+1
Project Value ~ KES 106.12 billion (approx USD figure depends on exchange rate) PPP Kenya+1
Status Project development / feasibility study phase. Development phase ends around August 2024. PPP Kenya
Contract Term 30 years for operation under BOT model. PPP Kenya
Additional Components Mineral recovery / product sales from the desalination process (i.e. extraction / sale of salts or minerals), which adds a revenue stream. PPP Kenya+1

Other Related Desalination / Water Supply Initiatives in Lamu

While the main large-scale desalination plant is being developed, there are several smaller and interim projects in Lamu for water supply:

  • A solar-powered desalination plant established in Siyu Village (Lamu East) to serve >10,000 residents, under agreement with ENI (Agip) and county government. Nation Africa+2Business Daily Africa+2

  • Faza & Siyu water supply/desalination projects: elevated water tanks, sump tanks, pipelines, household connections for small villages. Lamu Water+1

  • “Desalination plant Mkokoni” and other small reverse osmosis (RO) plants with modest flow rates under Lamu County’s ongoing water project listings. Lamu Water


Implementation & Commercial Structure

  • The project is structured as a PPP, with private partner Rasli Bahari Kenya Ltd conducting the build-operate-transfer over 30 years. PPP Kenya

  • Equity-to-debt ratio or financing structure has not been fully disclosed in all sources, but project valuation is high (KES 106+ billion) reflecting both scale and complexity. PPP Kenya+1

  • Contractual phases include feasibility studies, environmental & social impact assessments, permitting, procurement/tendering, construction, commissioning, and long-term operation. PPP Kenya


Key Risks & Considerations

  • Environmental impacts: Seawater intake/discharge, energy usage, marine ecology, potentially mineral recovery byproducts. Proper ESIAs are necessary.

  • Energy source / cost: Desalination is energy intensive. How power is supplied (grid, solar, etc.), and cost of electricity will affect operating costs.

  • Water quality / reliability: Ensuring potable water standards, maintenance of plant equipment, robustness under coastal conditions (corrosion, salt, humidity).

  • Funding & finance risk: Large capital outlay, credit risk, foreign exchange risk (if equipment/materials are imported).

  • Local infrastructure & distribution: Having reliable pipelines, storage, distribution to end consumers; ensuring affordability of water (tariffs) for local population.


Strategic Value & Opportunity

  • Supports Vision 2030 and Kenya’s goals for clean water access and infrastructure development.

  • Complements the LAPSSET corridor infrastructure, ensuring that port, transport, and tourism growth in Lamu are matched with adequate water supply.

  • Mineral recovery component offers diversified revenue, possibly improving project cash flows.

  • Job creation, skills transfer, economic uplift in Lamu County.