91-day T-bill8.750%▲ 0.002
182-day T-bill8.851%▼ 0.008
364-day T-bill9.029%▲ 0.002
Central Bank Rate8.75%07/10/2026
Inflation6.8%September 2026
Top MMF yield10.46%Madison
Sources: CBK auction, 2 Nov 2026 value date (change vs 26 Oct); CBK key rates; fund managers' published yields, as at 1 Nov 2026.

Kenya targets satellite launch market with planned spaceport between Malindi and Lamu

Kenya targets satellite launch market with planned spaceport between Malindi and Lamu

Quick answer

Kenya plans a commercial satellite launch site at Kipini, between Malindi and Lamu. The Treasury invited transaction adviser bids in December 2025, and a feasibility study funding deal was signed on 1 October 2026.

Get breaking business news on WhatsApp

Kenya has formally started the process of building a commercial spaceport on its coast, with the National Treasury inviting bids for a transaction adviser to steer the project as a public private partnership. The Kenya Space Agency (KSA), which is driving the plan, wants a satellite launch facility in the general area of Kipini, between Malindi and Lamu, so that African-built satellites no longer have to be flown abroad to reach orbit.

The invitation for transaction advisory services was issued by the National Treasury’s State Department for Public Investments and Assets Management on 6 December 2025 and published on MyGov, according to Capital FM. The terms of reference, posted on the KSA website, were made public in mid-December. A virtual pre-bid conference was set for 9 January 2026 and the tender was due to close on 13 February 2026.

Why Kenya wants a spaceport

The terms of reference set out the commercial case. There are 35 spaceports and launch facilities worldwide that can send satellites or spacecraft into sub-orbit, orbit and beyond, and 22 of them are active. None of the active ones is in Africa, so satellites made on the continent have to be transported to launch sites elsewhere at considerable cost.

KSA argues that Kenya has natural advantages that few countries can match:

  • The equator. Launching from low latitudes near the equator saves a significant amount of fuel and cost compared with launches from higher latitudes, and makes it easier to place satellites in equatorial and low inclination orbits. Those orbits give shorter revisit times over regions near the equator.
  • An east-facing coast. Rockets launched eastwards over the Indian Ocean drop their spent stages downrange over water, so parts can be recovered with no danger to people living below.
  • Weather. Good weather allows launch activity to go on all year round.
  • Logistics. The coast has good maritime ports and links to global supply chains.

Kenya has launched from Malindi before

The plan builds on history. Between 1964 and 1988 the San Marco Equatorial Range near Malindi, an Italian-run facility, was used to launch 18 sounding rockets and nine satellites, according to the terms of reference. Algeria’s Diamant launch pad near Hammaguir was the only other African site used for such launches. Neither facility conducts launches today, which is the gap KSA wants to fill.

What the transaction adviser will do

The adviser will run the project under the Public Private Partnerships Act, 2021. Its tasks, as listed in the terms of reference, include:

  • preparing feasibility studies that give a baseline guide for building a commercial spaceport;
  • assessing the technical, economic, financial, environmental and social feasibility of a launch facility in Kenya;
  • proposing how the project should be structured and carried out as a PPP;
  • making proposals on whether Kenya should develop or acquire a launch vehicle;
  • producing preliminary designs, drawings and a phased plan for building the spaceport;
  • carrying out a value for money analysis and affordability assessment;
  • recommending the best PPP model after comparing technical solutions;
  • running market sounding with potential investors; and
  • drafting the tender documents, from the request for qualification and request for proposals to a draft project agreement.

KSA is a state corporation set up under the Kenya Space Agency Order of 2017 to promote, coordinate and regulate space activities in Kenya. Its functions include developing national space capability and nurturing a national space economy, and the terms of reference describe satellite launch capability as a key part of that goal. Beyond lower launch costs for African satellites, the agency expects technology transfer, new supply chains and high-skilled jobs.

Update: feasibility study funding signed in October 2026

The project has since moved forward. On 1 October 2026 the Director General of the PPP Directorate, Eng. Kefa Seda, hosted KSA Director General Major General Hillary Kipkosgey to sign a funding agreement for the feasibility study of the proposed spaceport, the Directorate said in a statement. The signing followed the appointment of a transaction adviser to carry out the study and give technical, commercial and advisory support.

The Directorate said the adviser will carry out detailed technical feasibility work and commercial and financial analysis to build a bankable project structure, and that its work will guide the competitive selection of a private partner. It expects the spaceport to drive industrialisation, create jobs and skills, and give the government a new revenue stream through revenue sharing once a commercially viable launch site is running. It also pointed to investment already going into roads, water, energy and port infrastructure on the coast.

The agreement funds the study that will decide whether and how to build the spaceport. Construction has not started, and no private partner has been chosen.

Part of a wider push

The spaceport is one of several big science projects on the government’s list. KSA has also been courting Chinese satellite firms on data access and training, and the state has floated a KSh 80 billion nuclear research reactor at Konza. For more stories like this, follow our business news section.

Frequently asked questions

Where will Kenya’s spaceport be built?

The Kenya Space Agency is looking at the general area of Kipini, on the coast between Malindi and Lamu.

Has construction started?

No. As of October 2026 a transaction adviser has been appointed and a funding agreement for the feasibility study has been signed. The study will decide how the project goes ahead.

Why build a spaceport in Kenya?

Kenya sits on the equator and has an east-facing coast, which saves rocket fuel, lets spent stages fall safely into the ocean and allows launches all year. Africa currently has no active launch site.

Has Kenya launched rockets before?

Yes. The San Marco Equatorial Range near Malindi launched 18 sounding rockets and nine satellites between 1964 and 1988.

ShareWhatsAppFacebookXLinkedIn

Get the weekly Business Radar briefing

Get Kenya's money, jobs and deadline updates.

One short email a week with exam dates, deadlines, job openings and money changes in Kenya.

Topics (optional)

Prefer WhatsApp? Follow Business Radar on WhatsApp

Weekly, free. We only use your email for this newsletter and you can unsubscribe in one click. Privacy policy.

Want more Business Radar stories in your Google results? Add us as a preferred source.

About Author

Norah Waceke is a business journalist and editor at Business Radar with more than eight years of experience covering Kenya's economy, companies and markets. She previously worked at one of Kenya's leading digital news platforms, where she reported on business, finance and current affairs. A graduate of Multimedia University of Kenya, Norah focuses on clear, accurate reporting that helps readers understand the money stories shaping their lives and businesses.

More from Norah Waceke · Editorial policy

Related stories

Banking & Finance Guides

Car Loan Interest Rates in Kenya 2026: 22 Banks Compared

Updated 1 November 2026 Home › Banking & Finance › Car Loan Interest Rates in Kenya 2026: 22… Car loan
Banking & Finance Markets

I&M Dividend History and 2026 Payment Dates

I&M dividend history 2022-2026: every interim and final per share, book closure and payment dates, the KSh 3.75 total for
★ Add Business Radar as a preferred source on Google
Latest