January 22, 2020: Kenya’s roads and railways network is accelerating growth in the logistics sector, which is estimated to hit $5 billion (Sh500 billion) by 2023. Other drivers are harmonised levies for foreign investors, increasing retail and ecommerce space and the country’s strategic location, according to Ken Research, global aggregator and publisher of market intelligence, equity, and economy.

The report notes that the Sh180.9 billion allocated for on-going roads construction projects as well as the rehabilitation and maintenance of roads across the country will propel growth of the logistics sector.

The research that covered road, railway, sea, pipeline, air freight forwarding, international and domestic freight, integrated and 3PL freight also noted that part of the growth stimulant include the Sh55.8 billion provided for the completion of Phase 2A of the standard gauge railway (SGR), Sh11 billion for the Lapsset project, and Sh7.2 billion and Sh3 billion for the development of Mombasa and Kisumu ports, respectively.

Further, increased trade with China, and entry of other players, Nairobi County government’s plans to reduce levies for foreign investors, and Kenya’s bid to facilitate global investors to acquire land for setting up special economic zones (SEZs) in Mombasa, Kisumu, and Lamu, have stimulated the sector’s growth.

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