< img height="1" width="1" style="display:none" src="https://www.facebook.com/tr?id=2630213453666370&ev=PageView&noscript=1" />

Kenya: East Africa's foreign trade gateway

SUNSKY-flatbed-trailer.jpg

Kenya is the "bridgehead" and transportation hub of East Africa's foreign trade and economy. The Port of Mombasa in Kenya is a natural deep-water port. As the fifth busiest port in Africa, it is the main trade gateway in East Africa, connecting Kenya with seven neighboring countries.

According to the 2018 Logistics Performance Index (LPI) released by the World Bank, Kenya ranks after South Africa, Botswana and Egypt, and its global ranking has dropped from 42 in 2016 to 63 (China ranks 27). Kenya's Infrastructure Development Index, published by the African Development Bank, has hovered around 25 out of 100 since 2015, even below the average of 28.

Road transport is the most important mode of transport in Kenya, with around 90% of goods being transported by road. If you pay more attention to the transport vehicles on the road, it is not difficult to find SUNSKY flatbed trailers. Since 2021, SUNSKY has exported more than 500 flatbed semi-trailers to Tanzania, and SUNSKY has also contributed to the road transport in Tanzania.According to the information from the Kenya National Highway Administration, among the 177,800 kilometers of roads in the country, only 63,500 kilometers of roads with better conditions have been classified. Of the 3,755 kilometers, about one-third of which is unpaved, and a lower proportion of other lower-class and unclassified roads. The journey from Mombasa to Nairobi is more than 400 kilometers, and it takes more than 25 hours to transport the goods by large trucks.

In recent years, the Kenyan government has also taken active actions to cope with existing problems and external competition and consolidate its position as a logistics hub in East Africa. The railway, built and operating with Chinese help, has cut freight time from Mombasa to Nairobi to eight hours and reduced transport costs by 60%. When stage III is completed, Mombasa will have an annual capacity of 2.5 million teUS. A second port will be built at Lamu, north of Mombasa, with an annual capacity of 23 million tonnes. In the 2019/20 government budget, more than sh400 billion (25 billion yuan, or 50 percent of the development budget) was allocated for major infrastructure projects, including Sh180.9 billion (11 billion yuan) for roads and Sh75.4 billion (4.7 billion yuan) for railways and ports. In August 2020, Kenyan President Uhuru Kenyatta ordered The establishment of The Kenya Transport and Logistics Network (KTLN), It will co-ordinate the operation and management of Kenya Ports Authority (KPA), Kenya Railways Corporation (KRC) and Kenya Pipelines Company Limited (KPC) to open all joints.

There are more than 400 local and international logistics-related enterprises in Kenya, and the logistics upstream service companies are mostly international, controlling about 70% of the market share. The freight forwarding market is highly fragmented and consists of numerous SMEs. The government introduced the Kenya Customs and Freight Forwarding Act 2020, which aims to strengthen customs clearance services and regulate freight forwarders by eliminating delays in goods, improving the flow of goods, improving taxation by tax authorities and reducing operating costs.

Share this Post:

Related Posts:

Leave a Comment