Kenya Ports Authority has signed a deal worth $478m with China Communication Construction Company (CCCC) for the construction of three Lamu Port berths.
The three new berths will form part of the $24bn Lamu Port South Sudan Ethiopia Transport (Lapsset) corridor and take its berth count to 29 upon completion.
Speaking at the signing ceremony Kenyan President Uhuru Kenyatta said: "The signing of this contract for construction of the first three berths is a major milestone in delivering the Lapsset programme and achieving Kenya's Vision 2030."
The Kenyan Government has set aside $50.7m to compensate the affected land owners due to construction of Port berths.
"The Lapsset project encompasses other infrastructure components and facilities, including roads, railway, airports, oil refineries, pipeline, fibre optic cable and high grand falls," Kenyatta added.
"All these components are to be implemented as a package that will result in the development of an integrated transport and economic corridor."
Construction works on the berths are scheduled to begin in September.
The Lapsset corridor is expected to provide Kenya with much-needed transport infrastructure that will result in economic prosperity of northern and eastern parts of the country, according to Kenyatta.