A new submarine cable project is targeting a connectivity gap along Kenya’s Indian Ocean coastline, with developers planning a 500-kilometre system linking five landing points between Mombasa and Lamu.
The LuLu Coastal Cable System was announced at ITW Africa 2026 and is being developed by Mauritius-headquartered ICT infrastructure developer INDOI Ltd (IOX), Kenyan investment company Blue Trade Investments Limited, ARISE IIP, AfriTrade Consulting Group and Kingdom Bank.
The system will connect Mombasa, Vipingo Special Economic Zone (VSEZ), Kilifi, Malindi and Lamu. It will combine a submarine cable running along the seabed with a parallel protected terrestrial route, an architecture intended to provide an alternative path in the event of disruption to the undersea network.
Arunachalam Kandasamy, founder and chief executive officer of INDOI Ltd, said the project reflects the growing demand for digital infrastructure in East Africa and the strategic importance of Kenya’s coastal corridor.
“This is a moment I have been building towards since the day INDOI was founded. East Africa is not a market of the future -it is a market of right now. Kenya’s coastal corridor, from Mombasa to Lamu, is one of the most dynamic, strategically significant, and commercially compelling stretches of coastline on the planet. And yet, until today, it has never had a single, unified, fully protected digital infrastructure system designed specifically for it. LuLu changes that. Permanently”.
The cable will use dense wavelength division multiplexing (DWDM) technology in the 1550nm window and will have 144 fibres, with a design capacity of up to 60 Tbps per fibre pair. It is designed for a 25-year operational life and will have centralised network management.
The developers expect the system to be ready for service in the second quarter of 2028, subject to contract execution.
The dual-path design is aimed at customers for whom connectivity interruptions can have significant operational and financial consequences, including international cable operators, data centres, enterprises and governments. The project’s proponents say the parallel submarine and terrestrial routes are intended to provide redundancy rather than relying solely on the undersea cable.
Vipingo SEZ seeks digital investment
One of the project’s key landing points will be Vipingo SEZ, which is being developed by ARISE IIP as a major industrial and digital investment zone on Kenya’s coast.
The cable connection could expand the types of businesses able to operate from the zone by providing direct access to international connectivity infrastructure. Potential users include hyperscale data centres, cloud service providers, business-process outsourcing and global business services companies, fintech and payment platforms, cybersecurity operations and businesses using connected manufacturing technologies.
George Olaka, country head of ARISE IIP Kenya, said the cable fits into the wider development strategy for Vipingo.
“Vipingo SEZ was never intended to be a conventional industrial zone. We are building it as a platform where industry, logistics, value addition and digital infrastructure can reinforce each other. The LuLu cable system adds an important dimension to that vision. Direct, resilient submarine cable connectivity within the zone strengthens VSEZ’s ability to attract not only manufacturers, but also the digital and technology-driven businesses that increasingly sit at the centre of modern industry. We are pleased to be part of this partnership and believe LuLu can help position Kenya’s Coast as both an industrial and digital growth corridor for the region.”
The planned landing at Vipingo could therefore make digital infrastructure part of the zone’s investment proposition alongside manufacturing, logistics and other industrial activities.
For investors, access to international connectivity is increasingly a consideration in locating data-intensive operations. LuLu is intended to provide that connectivity directly within the SEZ rather than requiring businesses operating there to depend solely on infrastructure located elsewhere.
Mombasa provides link to global networks
The system’s Mombasa landing is intended to connect LuLu to the international submarine cable infrastructure already serving Kenya.
This means traffic from the other LuLu landing points would have a route into the existing global internet backbone through Mombasa. The arrangement could allow businesses and operators along the coast to access international networks without the project having to create a separate global interconnection ecosystem.
The broader development is being supported by Blue Trade Investments, which is serving as INDOI’s Kenya-registered infrastructure partner. The company is the designated cable landing party, regulatory interface and operational delivery partner for the Kenyan project.
Its role includes engagement with regulatory authorities, government institutions and coastal communities involved in the development and deployment of the system.
Kingdom Bank is also involved in the project and has an existing client relationship with Blue Trade Investments.
Anthony Mburu, managing director and CEO of Kingdom Bank Limited, said the project reflects the growing role of digital infrastructure in regional economic development.
“Blue Trade Investments Limited is a valued client of Kingdom Bank, and we are pleased to support its growth and expansion. The LuLu Cable System highlights the increasing importance of digital infrastructure in driving investment, connectivity and economic activity along Kenya’s Coast. We welcome Blue Trade’s participation in the initiative and the opportunities it presents for the region.”
The bank’s involvement brings financial-sector support to a project whose commercial rationale is based partly on attracting investment and digitally intensive businesses to the coastal region.
Regulatory and commercial groundwork
AfriTrade Consulting Group has been involved in the commercial and regulatory work supporting the project. The company says it introduced VSEZ and INDOI and has advised the parties on transaction structuring, regulatory clearance, compliance and onboarding.
Dr Caroline Saroni, CEO and executive director of AfriTrade Consulting Group, said the work behind the project was as important as the infrastructure itself.
“A project of LuLu’s ambition succeeds only when vision is matched by careful execution, the regulatory, licensing and commercial groundwork that turns a bold idea into a bankable, deliverable reality. That is the work AfriTrade has been proud to lead from the outset, introducing VSEZ and INDOI and advising both sides, alongside our sister law firm S&S Advocates, on transaction structuring, regulatory clearance, compliance, and onboarding that underpin a system of this scale and significance”.
Saroni also pointed to the potential implications beyond the individual cable landings, particularly for investment along the coast and the LAPSSET corridor.
“LuLu is exactly the kind of infrastructure Africa needs, resilient, purpose-built, and capable of unlocking real investment along Kenya’s Coast, at Vipingo SEZ, and across the LAPSSET corridor. We congratulate INDOI and the entire coalition, and we look forward to the transformation it will bring to the region”.
