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regional manufacturing hub whereby raw
commodity exports from other countries in
the region that are passing through Kenya’s
corridor would make a stop-over for
processing before being exported to global
markets. Kenya’s logistics environment
and its strategic position can be seen as a
backbone to this vision,” he said.
While Kenya boasts a “With enhanced manufacturing and
vast network of roads, processing capacity, the logistics landscape
widening many to dual could also blossom as the demand for
warehousing, customs clearance and
carriage would benefit shipping would increase,” he added.
trucking. Extending As Kenya moves forward with a vision to
the Standard Gauge grow its economy by transforming it into a
manufacturing and transport hub, it needs
Railway (SGR) to collaborate with their neighbouring
to Uganda would countries and should try to find the right
introduce time and balance between trade and politics. Kenya is
an active member of several organizations
cost-efficient transport aiming at creating a single trading market
between the two across the region, such as the African
countries. Continental Free Trade Area (AfCFTA) and
the East African Community (EAC).
LEE I'ONS I'Ons observed, “United, cross-border
KUEHNE+NAGEL
trade industry will facilitate improved
efficiency of all components of the logistics
infrastructure and the African continent, the world's largest exporter of tea and one of industry. The growth of the industry will
created and owned by African countries. the top exporters of coffee (sea freight).” inevitably lead to network improvements.
“One of the things that really drives Meanwhile, he made an interesting While Kenya boasts a vast network of roads,
this high cost of transport, is the fact that observation about the East African nation widening many to dual carriage would
we don't produce enough. Africa exports that it has been a source of innovation benefit the trucking industry. Extending the
more raw materials and imports more and talent not only for his company Standard Gauge Railway (SGR) to Uganda
finished products. And when you do that, Kuehne+Nagel but also the logistics industry. would introduce time and cost-efficient
there's often a delta that goes with your “Africa has a history of rapidly transport between the two countries.”
transportation costs. In global maritime, adapting and developing new Rathore also advocates for increased
you pay for the freight when you export technologies, and Kenya leads the way in collaboration particularly when it comes to
raw materials. And when you import this process. Keys to the future will be the overcoming the challenges that Kenya faces
finished products, you also pay for the reduction of inter-Africa trade barriers from a logistics perspective.
trip,” he said. and the training and development of He said, “Securing the best outcomes
He added, “When you have those logistics professionals,” he said. requires a consistent approach from the
fundamental structural conditions, Thus Africa forms part of our Roadmap government and meaningful dialogue with
it challenges your ability to do trade 2026 strategy, the basis for their vision 2030. key stakeholders. Also, one of the things
facilitation and create regional value chains He adds, “As such, we will invest in that would be beneficial to the industry
because you're struggling to be cost- people development, helping cultivate skills, could be government improvements that
effective in your trade.” knowledge, and expertise, and nurture could help accelerate the modernisation of
Lee I'Ons, president, Middle East client relationships, fostering organisational an already solid logistics environment in
and Africa, Kuehne+Nagel, noted that growth across the continent, with Kenya Kenya would relate to introducing up-to-
Kenya is an important logistics hub for being a key to East Africa.” date technology to automate the port of
Kuehne+Nagel, “thanks to its strategic On the same line, Udit Rathore, head of Mombasa. This could be done by learning
location and established air, sea, and road ground & rail, East Africa, CEVA Logistics, from best global practices and adopting
connections in Mombasa and Nairobi to the opined that the future is still bright in Kenya a solution that would be optimal for
rest of the region,” he said. since there are numerous opportunities Mombasa Port.”
Talking about the business landscape for manufacturing activities, allowing Thus the future of Kenya depends upon
of the country, he added, “Kenya is mainly the country to shift from exporting raw the fine balance it may have to play in terms
known for exporting perishables, especially commodities to processed products. of attracting cargo from the landlocked
flowers (sea and air freight), and fruits and “Kenya has a young and well- countries with competitive pricing while
vegetables, such as mangoes, beans, and educated population to embark on this simultaneously building the infrastructure
avocados (air freight). The country is also trajectory. It could even evolve into a to support it.

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