Al-Qaeda Threats Stall Kenya’s Vision for a Major Indian Ocean Trade Corridor
LAMU, Kenya — April 8, 2025
Kenya’s long-standing plan to transform its northern frontier into a major regional trade corridor has suffered major setbacks as Al-Qaeda–linked militants continue to disrupt the multibillion-dollar infrastructure project.
The initiative, designed to link the new Lamu Port to Ethiopia and South Sudan through a network of highways, rail lines and an oil pipeline, was intended to open a new gateway for commerce in East Africa. The project, estimated at more than $25 billion, spans a vast stretch of remote and underdeveloped terrain, where insecurity has remained a persistent challenge.
Although the port at Lamu has been completed, activity remains minimal. The facility, built with Chinese support and expected to become a hub for regional imports and exports, has struggled to attract steady shipping traffic. Many planned components of the wider corridor have stalled or slowed due to ongoing militant activity.
Insurgent groups operating from neighboring Somalia have carried out attacks along transport routes and at project sites, discouraging contractors and heightening security costs. The threat has also deterred private investors, who were expected to play a significant role in financing and operating parts of the corridor.
Local leaders and business owners have voiced frustration, saying that despite the enormous investment, the benefits remain out of reach. Some residents describe the port as underused, expressing concerns that the broader project could become an expensive failure unless security improves and construction resumes at scale.
The Kenyan government maintains that the corridor remains a priority, arguing that its long-term economic potential outweighs short-term obstacles. However, officials acknowledge that militant activity has significantly slowed progress and threatens the viability of some planned infrastructure components.
The Lamu Port–South Sudan–Ethiopia Transport (LAPSSET) corridor was envisioned as a transformative project to boost regional trade, enhance Kenya’s role as a logistics hub, and unlock economic opportunities in historically marginalized northern counties. For now, insecurity—particularly the cross-border threat from Al-Qaeda–aligned groups—continues to cast doubt over the project’s timeline and impact.