China-driven port development: lessons from Kenya and Malaysia

The document analyzes the ESG impacts of the Lamu Port in Kenya and the Kuantan Port in Malaysia, both developed under China's Belt and Road Initiative. It finds that both projects caused significant environmental damage, including the loss of mangroves in Kenya and pollution from bauxite mining in Malaysia. Socio-economic issues include unpaid compensation for displaced communities in Kenya and public health concerns in Malaysia. The briefing argues that these projects often prioritize political elite interests over pragmatic alternatives, leading to governance failures and questionable economic rationales.

• The Lamu Port project in Kenya threatens critical ecosystems, with the World Wildlife Fund estimating that over 150,000 hectares of intact habitats, including mangroves, coral reefs, and seagrass beds, could be lost. Specifically, the loss of over 9,400 hectares of mangroves would represent 38% of Lamu's total stock.
• Socio-economic impacts at Lamu Port include the disruption of traditional fishing and tourism livelihoods. By 2020, promised compensation for displaced farming communities and approximately 4,000 fishermen who lost livelihoods due to dredging had not been paid.
• The LAPSSET project in Kenya has been associated with governance concerns and human rights issues, including a pattern of police harassment of environmental activists and the NGO Save Lamu starting in 2014.
• The expansion of Kuantan Port in Malaysia led to environmental degradation, including garbage dumping, shipping emissions, and air pollution. Furthermore, the port facilitated a bauxite mining boom that caused pollution of interior waterways and illegal forest clearance.
• Governance of the Kuantan Port expansion was controversial due to a lack of transparency in selecting it over the potentially more efficient Kemaman Port. Critics link this decision to the interests of former prime minister Najib Razak, whose home state is Kuantan.
• Chinese state-owned enterprises (SOEs) are the primary drivers of these projects. China Communications Construction Company (CCCC) and its subsidiaries, China Harbour Engineering Company (CHEC) and China Road and Bridge Corporation (CRBC), are key players in Africa, while the local SOE Guangxi Beibu Gulf International Port Group (BGIPG) operated the Kuantan Port project.

APA

South African Institute of International Affairs (2021). China-driven port development: lessons from Kenya and Malaysia. https://saiia.org.za/research/china-driven-port-development-lessons-from-kenya-and-malaysia/

Chicago

South African Institute of International Affairs. China-driven port development: lessons from Kenya and Malaysia. 2021. https://saiia.org.za/research/china-driven-port-development-lessons-from-kenya-and-malaysia/.

Wikipedia

{{cite report |author=South African Institute of International Affairs |title=China-driven port development: lessons from Kenya and Malaysia |date=14 December 2021 |url=https://saiia.org.za/research/china-driven-port-development-lessons-from-kenya-and-malaysia/ |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{southafricaninstituteofinternationalaffairs2021chinadriven, author = {{South African Institute of International Affairs}}, title = {{China-driven port development: lessons from Kenya and Malaysia}}, institution = {South African Institute of International Affairs}, year = {2021}, month = dec, url = {https://saiia.org.za/research/china-driven-port-development-lessons-from-kenya-and-malaysia/}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }