Page 16 - LUA November - December 2023 for Magzter

COUNTRY REPORT

Kenya

THE EAST

AFRICAN

GATEWAY’S

BALANCING

GAME

The entire East African region is looking at a future of a connected Africa and
world. But it all depends upon one logistically dominant country in the region:
Kenya. Meanwhile, Kenya is busy finding its balance between infrastructure
and trade originating from its neighbours, reports Libin Chacko Kurian.

n August 19, 2023, President of handled at the port was 1.2 million 20-foot
South Sudan Salva Kiir visited equivalent units (TEUs) against 1.1 million
the Kenyan capital Nairobi and TEUs handled in the same period.
Omet his counterpart William Ruto Thus, it is not just that the landlocked
at the State House for bilateral talks. The countries are dependent on Kenya and
recent meeting between the two presidents Mombasa, but the Kenyan economy
highlights at least two important facts about and its infrastructure depend on trade
the country Kenya. generated from these neighbours. In fact,
First, Kenya is a key nation from the the Port of Dar es Salaam is giving tough
logistics perspective for the landlocked Kenya could evolve competition to Mombasa by attracting
nations including South Sudan. For into a regional more cargo. For example, in a recent
instance, all the discussion between the manufacturing development, the political leaders of
two leaders was dominated by regional the Kisumu region in the western part
trade and the infrastructure that supports hub whereby raw of Kenya got involved when Ugandan
it. Second, Kenya and its landlocked commodity exports President Yoweri Museveni decided to
neighbour want to diversify their trade from other countries make the Port of Dar es Salaam instead
from the congested Port of Mombasa. of Kenya its entry point for oil imports.
During their joint talk, both leaders in the region would Because the Port of Kisumu, situated on
committed themselves to a specific make a stop-over for the banks of Lake Victoria, which handled
infrastructural project which is not only processing before the oil for Uganda till now depends
crucial for Kenya and South Sudan but also heavily on the movements of oil products
for Ethiopia: Lamu Port-South Sudan- being exported. and the recent decision can have negative
Ethiopia-Transport (LAPSSET) Corridor, UDIT RATHORE impacts on the economic landscape of
also called Lamu Corridor, which makes CEVA LOGISTICS this region.
Lamu Port the gateway to the world instead Abiola Osho, associate vice president,
of Mombasa. most important and busiest port in the investment, Africa Finance Corporation
Even though the Port of Mombasa East African region. The port handled (AFC), thinks that some of the major
is facing many congestion issues due 26.6 million tonnes of cargo in the first challenges that Kenya has, similar to what
to the import and export it supports nine months of 2023 from January to you find in other countries as well, are
from neighbouring countries, and September compared to the 25.8 million congestion and high cost of transportation.
there are attempts to move cargo away tonnes handled in 2022, representing a AFC is a Nigeria-based multilateral
from Mombasa, it still remains the three percent increase. Container traffic finance institution focused purely on

14 LUA NOVEMBER - DECEMBER 2023