Africa-Press – Kenya. Kenya’s push to expand exports under the African Continental Free Trade Area is hindered by logistical challenges, a new study now indicates.
This is in addition to existing tariff and non-tariff barriers even as Africa seeks to unlock intra-continental trade and cut over-reliance on other global markets.
The “Logistics Study Report” shows that structural inefficiencies across key transport corridors are significantly undermining the ability of Kenyan firms, particularly small and medium-sized enterprises (SMEs), to compete in African markets.
The study was commissioned by the Kenya Association of Manufacturers (KAM) with support from TradeMark Africa and funding from the Foreign, Commonwealth and Development Office (FCDO).
While AfCFTA promises a single market of over 1.3 billion people, the report finds that Kenyan exporters face layered and often-unpredictable logistics costs that erode price competitiveness long before goods reach destination markets.
At the heart of the challenge is the cost and complexity of moving goods across borders.
Along the Lusaka corridor for instance, one of the busiest trade routes linking East and Southern Africa and a key connection to the Comesa market, transporting a 20-foot container costs between $3,500 (Sh454, 475) and $7,000 (Sh 908, 950).
These costs are driven not only by fuel prices but also by inefficiencies such as poor backhaul utilisation, toll charges and facilitation payments.
Transit times are equally volatile, ranging from eight to 30 days. At key crossings such as the Nakonde–Tunduma border, about 1,000 trucks pass daily, yet clearance still takes an average of 2.5 days due to system downtimes, documentation errors, and congestion.
For SMEs operating on tight margins and delivery schedules, such unpredictability can be commercially crippling.
“You secure the order, you meet the standards, you are ready to compete, but getting the product to the market becomes the biggest hurdle,” KAM chief executive Tobia Alando noted.
The Moyale corridor into Ethiopia on the other hand presents a different but equally constraining set of issues.
Despite improved road infrastructure along the Isiolo–Moyale stretch, operational inefficiencies persist.
Security checkpoints, inconsistent cargo flows and the incomplete rollout of the One Stop Border Post have created uncertainty for transporters, according to the report.
Infrastructure gaps, including a lack of cargo scanners, weighbridges and limited operating hours continue to slow cargo movement.
Informal trade routes, widely used by small-scale traders, further complicate efforts to formalise and scale cross-border commerce.
For Kenyan exporters targeting West African markets such as Nigeria and Ghana, maritime shipping remains the only viable option.
However, the absence of direct shipping routes between East and West Africa forces exporters to rely on transshipment through hubs such as Dubai, Durban or even Europe, before final delivery to West Africa, adding both time and costs.
Shipping a 20-foot container from Mombasa to Lagos for instance costs between $3,200 (Sh Sh415, 520 ) and $4,200 (Sh545,370 ) in total, while a 40-foot container can cost up to $6,000 (Sh779,100 ).
Additional charges including terminal handling fees, documentation costs, container deposits, and insurance further inflate the final bill.
Transit times range from 20 to 35 days, introducing delays that can affect inventory planning and market responsiveness.
Airfreight, though faster, is prohibitively expensive for most exporters. Sending cargo from Nairobi to Lagos costs between $3.5 (Sh454) and $5.5 (Sh714 ) per kilogramme, translating to as much as $110,000 (Sh14.3 million) for the equivalent of a full container load.
KAM SME Hub chair and founder of Harriet Botanicals, Harriet Ngo’k who exports to over 50 countries notes that the cost of moving goods is one of the biggest challenges they face.
“For products worth Sh30,000, it costs me Sh14,000 to get them to Rwanda, Sh17,000 to Nigeria, Sh38,000 to Australia, Sh30,000 to the U.S and about Sh10,000 to Qatar. These costs are high and unpredictable, and they directly affect where and how we can trade,” she said.
Industry PS Juma Mukhwana however said the government in creating an enabling business environment and addressing structural barriers to trade, alongside putting up key infrastructure such as the SGR extention to Malaba, which will improve connectivity into the hinterland.
“Kenya’s time is now, and Africa’s time is now. We must move from exporting raw materials and importing finished goods to building value locally and regionally. This calls for investments in infrastructure, support for SMEs, and stronger regional integration,” he said.
TradeMark Africa country director, Lilian Mwai, noted that the study provides a critical foundation for targeted reforms to unlock trade and strengthen manufacturing competitiveness.
To address these structural barriers, the report proposes the establishment of shared logistics infrastructure, including an SME-focused distribution hub, enable exporters to pool shipments, improve container utilisation, and streamline distribution within regional markets.
According to industry players, AfCFTA’s success will depend as much on logistics reform as on tariff liberalisation.
