Africa-Press – Kenya. Kenya’s manufacturing sector has called for urgent action to address logistics bottlenecks that continue to undermine competitiveness and limit the country’s ability to fully benefit from the African Continental Free Trade Area.
This was during the launch of the Logistics Study Report by the Kenya Association of Manufacturers (KAM).
Findings from the study show that the cost of moving goods across Africa remains high and unpredictable, often outweighing the benefits of reduced tariffs under AfCFTA.
For example, transporting a 20-foot container along the Nairobi–Lusaka corridor costs between $3,500 and $7,000, with transit times ranging from eight to 30 days depending on border delays and operational disruptions.
The report highlights that while AfCFTA has opened a market of 54 countries, Kenyan manufacturers, particularly small and medium-sized enterprises (SMEs) are struggling to take advantage due to structural bottlenecks.
These include border inefficiencies, weak infrastructure, high freight charges and limited cargo consolidation systems.
Industry Principal Juma Mukhwana said the government is working to address these barriers through policy and infrastructure investments.
“The work of government is to create a conducive environment for businesses to grow. Kenya’s time is now, and Africa’s time is now,” he said.
“We must move from exporting raw materials to building value locally and regionally. This requires investment in infrastructure, support for SMEs, and stronger regional integration.”
He pointed to projects such as the Standard Gauge Railway and County Aggregation and Industrial Parks as key interventions aimed at improving efficiency and linking producers to markets.
KAM chief executive Tobias Alando said the findings show that logistics, not market access, is now the main barrier to competitiveness.
“While markets are opening, the systems that connect us to those markets are not moving at the same pace,” he said. “In many cases, logistics costs now outweigh the benefits of tariff reductions, meaning products are not competitive by the time they arrive.”
For SMEs, the burden is even heavier. Harriet Ngo’k, founder of Harriet Botanicals, said high and volatile shipping costs are directly shaping trade decisions.
“For products worth Sh30,000, it costs me Sh14,000 to get them to Rwanda and Sh17,000 to Nigeria,” she said. “These costs are high and unpredictable, and they directly affect where and how we can trade.”
She added that delays across key corridors are especially damaging for businesses dealing in perishable goods.
“My products have a shelf life of three to six months, yet it can take seven to ten days just to reach nearby markets like Uganda. By the time they arrive, I have already lost part of that shelf life,” Harriet who is also KAM SME Hub chair said.
TradeMark Africa Country Director Lilian Mwai said the study provides a roadmap for reforms.
“This report goes beyond identifying challenges. It pinpoints the real bottlenecks, from high clearance costs to infrastructure delays—that must be addressed to unlock intra-African trade,” she said.
The report recommends improved coordination among border agencies, investment in efficient infrastructure, and development of cargo aggregation systems to help SMEs reduce costs and access markets more competitively.
Without such reforms, manufacturers warn, the promise of AfCFTA risks remaining out of reach for many Kenyan businesses.
