STRATEGIC ANALYSIS OF KENYA PORTS AUTHORITY

GROUP CHECKMATE (GROUP 7)

FACULTY OF BUSINESS AND MANAGEMENT SCIENCES

DBA 401: STRATEGIC MANAGEMENT ASSIGNMENT

INSTRUCTOR: PROF.ZACHARY AWINO.PHD

GROUP MEMBERS

TABLE OF CONTENT

1. Introduction

2. Internal factors

3. Main external factor

4. Analysis of Kenya Ports Authority environment

4a) SWOT analysis

4b) PESTEL analysis

4c) Porter’s five forces framework

4d) The four –corner analysis

5. Key strategies that have been used by Kenya Ports authority

6Recommended strategies for Kenya ports authority

7. Glossary:

Kenya Ports Authority Milestones

Kenya Ports Authority products

Financial charts References

HISTORY OF KENYA PORTS AUTHORITY

Kenya Ports Authority is an investor in Kenya National Shipping Line, a state corporation of
Kenya formed in 1989, currently owned by KPA and three non-Kenyan corporate investors.

In 1989, the government of Kenya brought together the operation and regulation of existing ferry

services, including the Likoni Ferry service at Likoni, Mombasa, into one subsidiary of the
KPA, Kenya Ferry Services. The subsidiary was devolved to the status of an independent Kenya
state corporation in 1998, 20 percent owned by KPA and 80 percent owned by other Kenyan
Government entities.

KPA also owns various sports teams, including Kenyan Premier League team Bandari FC and a
leading basketball club.

In August 2014, Kenya Ports Authority signed a deal worth US$478 million with China
Communications Construction Company (CCCC) for the construction of three Port Lamu berths.
The three new berths will form part of the US$24 billion Lamu Port and Lamu-Southern Sudan-
Ethiopia Transport Corridor (LAPSSET) and take Port Lamu's berth count to 32 upon
completion.

Primarily, the port of Mombasa is considered as the Principal Kenyan seaport. It consists of the
Kilindini Harbour as well as the Port Reitz on the Eastern side of the Mombasa Island. It also has
the Old Port and the Port Tudor north of the Mombasa Island.

Kenya Ports Authority (KPA) is a state corporation with the responsibility to "maintain,

operate, improve and regulate all scheduled seaports" on the Indian Ocean coastline of Kenya.
Kenya has other ports apart from the main one in Mombasa. All the ports include: Port of
Shimoni ,Kipevu Oil Terminal, Port of Kiunga, Port of Funzi, Port of Mbaraki, Port of
Vanga ,Port of Kilifi, Port of Lamu, Port of Malindi, Port of Mombasa, Port of Mtwapa,
Shimanzi Oil Terminal.
2. INTERNAL FACTORS

KENYA PORTS AUTHORITY MISSION AND VISION

Vision: "World class seaports of choice.

“Mission: "To facilitate and promote global maritime trade through provision of competitive port
services."

KENYA PORTS AUTHORITY ORGANIZATIONAL STRUCTURE

The Kenya Ports Authority has seven management divisions, each being headed by the head of
the division. Usually, the heads serve at the level of General Managers. The divisions are
categorized as Operations, Finance, Human Resources & Administration, Infrastructure services,
Corporate Services, Legal Services, and Engineering services.

HR and admin division

The HRM manager leads this division. It includes services such as: Human resource services,
Administration services, Employee relations, Medical services Bandari College.

Finance division

Like is the case with all other organizations, KPA has a section that focuses on finances. This
deals with the following: Financial accounting Management, accounting, Procurement,
Commercial services.

Corporate service division

This section of the organization handles all corporate aspects of the organization. These include:
Corporate development, corporate affairs marketing IT.

Operations divisions

This division handles all matters of operation. It includes all handy tasks such as: Container
terminal operations, Conventional cargo operations, Inland container depots Logistics, and
Marine operations Safety branch.

Infrastructure division

This division is crucial as it makes all operations with KPA possible. It handles a couple of
things, including: Civil engineering, Electrical engineering, Project development and
management.

Engineering service division

This section handles a lot of hands-on servicing. It focuses on:

Container terminal engineering, Conventional cargo engineering, Marine engineering

Legal service division

This section of the company deals with all issues that surround the legal requirements. In case of
any suits, the legal department comes into play. Some of the things it does include: Contracts and
conveyancing, Litigation and disputes, Ethics and Integrity, Insurance branch Archives and
maritime museum br.

3. EXTERNAL ISSUES