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vehicle assembly and energy sectors. This
financing is expected to reduce Kenya's
borrowing costs and address challenges in
electricity transmission.
With the expiration of the African
Growth and Opportunity Act (AGOA),
Kenya has intensified efforts to establish
Infrastructure development remains central a reciprocal trade agreement with the
to Kenya's trade strategy. The Port of United States. In August 2025, Kenyan
Mombasa, East Africa's primary maritime officials, including Trade Cabinet Secretary
gateway, has experienced significant growth, Lee Kinyanjui, engaged in high-level
handling 41.1 million tonnes of cargo in discussions with U.S. counterparts to
2024, up from 35.98 million tonnes in 2023. explore new trade avenues. Kinyanjui
This 14% increase underscores the port's emphasised the importance of these talks,
expanding capacity and efficiency . stating, "We are looking to secure market
Complementing this is the Standard access for our exports and attract more
Gauge Railway (SGR), which has seen U.S. investment into Kenya."
a surge in freight volumes, reaching a GLOBAL PARTNERSHIPS: A These discussions build upon earlier
13-month high in March 2025. The SGR's GATEWAY TO NEW MARKETS meetings in March and May 2025,
role in facilitating the seamless movement Kenya's proactive approach to forging focusing on areas such as agricultural
of goods from the port to inland trade agreements with global powers exports, manufacturing, and technology
destinations is pivotal in reducing transit like Japan and the United States is transfer. The goal is to create a mutually
times and costs, thereby enhancing supply yielding tangible benefits. These beneficial trade framework that supports
chain efficiency. partnerships not only open new markets Kenya's economic growth and enhances its
for Kenyan products but also facilitate integration into global supply chains.
LOGISTICS AND SUPPLY technology transfer, capacity building,
CHAIN: THE RIPPLE EFFECT and investment inflows. The recent THE ROAD AHEAD:
The convergence of increased trade agreements are expected to bolster sectors CHALLENGES AND
and robust infrastructure has profound such as agriculture, manufacturing, and OPPORTUNITIES
implications for Kenya's logistics and technology, aligning with Kenya's Vision While the prospects are promising,
supply chain sectors. The rise in cargo 2030 objectives. challenges persist. Infrastructure
volumes necessitates advancements in At the Ninth Tokyo International bottlenecks, regulatory hurdles, and
warehousing, inventory management, Conference on African Development global economic uncertainties pose risks
and last-mile delivery solutions. (TICAD 9), held in Yokohama, Japan, to sustained growth. However, Kenya's
Moreover, the emphasis on digitalisation Kenya and Japan reaffirmed their commitment to reforms, coupled with
and automation is reshaping logistics commitment to deepening bilateral strategic investments in infrastructure
operations, making them more agile and trade and investment relations. President and human capital, positions it to navigate
responsive to market demands. William Ruto highlighted the need for tariff these challenges effectively.
Strategic locations like Tatu City Special reforms and increased access for Kenyan In conclusion, Kenya's journey in
Economic Zone (SEZ) are emerging as agricultural exports, such as avocados and 2025 is characterised by a harmonious
logistics hubs, attracting global players such tea, into the Japanese market. blend of investment, trade, infrastructure,
as Emirates Logistics. The establishment A significant outcome of the and global partnerships. As the nation
of a state-of-the-art facility in Tatu City conference was the signing of a yen- continues to strengthen its position in
underscores the growing confidence denominated loan agreement, backed by the global supply chain, the interplay
in Kenya's logistics capabilities and its Nippon Export and Investment Insurance between these elements will be crucial in
potential as a regional distribution centre. (NEXI), aimed at supporting Kenya's determining its future trajectory.

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