The Kenyan Government has secured a KES1.2bn ($15m) Chinese grant, the bulk of which will be used to build a second port in Lamu worth KES1.2tn ($15.6bn).
Lamu port, to be built at the Manda Bay and Naval Base, is expected to have a total of 22 berths.
The port will serve the Ethiopian market, which is currently served by Djibouti port, and Southern Sudan, which relies on Port Sudan, according to businessdailyafrica.com.
The government is also planning to use the fund to build a rail and road corridor from the coast to Isiolo.
Japan Ports Consultant has been awarded the tender to carry out the feasibility study.