The country's logistics industry is poised for a significant transformation following the unveiling of a new five-year strategic plan by the Kenya International Freight and Warehousing Association (KIFWA).
The five-year plan, which aligns with Kenya’s 2030 development vision, aims to digitize key services and inject eco-conscious practices into the customs, freight forwarding, and warehousing sectors.
As of 2024, the sector was valued at approximately Ksh1.47 trillion, contributing around 9 per cent to Kenya's Gross Domestic Product (GDP).
It facilitates the movement of at least 35 million tons of goods annually; however, clearing agents say they’ve felt disconnected from the actual growth reflected in cargo volumes reported by the Kenya Ports Authority.
Speaking during the plan's unveiling, ICT CS William Kabogo revealed that it aligns with the government's move to digitize all of its services.
"KIFWA's digital transformation agenda, especially the centralized clearing and forwarding management system, is in direct alignment with our strategy. It complements our broader ICT objectives of building a digitally inclusive and efficient economy," Kabogo said.
Stakeholders have hailed the move, revealing that it would reduce the cost of doing business in the East African Region.
"We expect to reduce the cost of doing business in the region. The cost of logistics is about 30 to 40 percent of the total cost of production, quite a big amount, compared to the Asian region, where it's only 8 per cent. So we are still extremely expensive in terms of logistics costs," Ogayo Ogambi, CEO of Shippers Council of East Africa, said.
A fundamental pillar of the strategic plan is the adoption of a centralized clearing and forwarding management system. The plan focuses on digitisation and eco-friendly logistics.
The digital platform promises to improve operational visibility, boost compliance, and increase government revenue collection, all while easing the burden of paperwork and bureaucratic delays.
''We have all seen the trend in cargo, this growth in cargo from the projections of what the Kenya Post Authority gave, and even the Kenya Post Authority. But this growth, we are not witnessing it as a clearing agent. So we want to come up with strategies that will help us solve compliance issues and create more revenue,'' Fredrick Aloo, KIFWA chairperson, said.
The plan also encourages warehousing companies to adopt eco-friendly practices, including green construction materials, energy-saving technologies, and carbon emission tracking.
The strategy aligns with the national ICT agenda aimed at cultivating a digitally empowered economy. By digitizing logistics processes, Kenya expects to reduce transaction costs across borders, strengthen regional trade integration, and attract new investment in the supply chain ecosystem.
