NAIROBI, March 31 (Xinhua) — High logistics costs for cross-border trade are locking Kenyan small and medium enterprises (SMEs) out of Africa’s markets, according to a study released on Monday.
The Logistics Study Report by the Kenya Association of Manufacturers (KAM), an umbrella body for industrialists in Kenya, revealed that logistics costs for intra-African trade remain high and unpredictable, often outweighing the benefits of tariff reductions under the African Continental Free Trade Area (AfCFTA).
“While the AfCFTA has opened access to 54 countries, the ability of Kenyan manufacturers, particularly SMEs, to access these markets is constrained by inefficiencies in logistics systems, including border delays, infrastructure gaps, high freight costs, and limited cargo consolidation mechanisms,” the report said.
Logistics systems across road, maritime, and air transport are largely designed around high-volume cargo flows. As a result, exporters moving smaller consignments face higher per-unit transport costs and reduced bargaining power in freight negotiations, it added.
KAM Chief Executive Officer Tobias Alando said that border procedures remain a major source of logistics costs and unpredictability across several transport corridors.
Alando noted that improving operational coordination among border agencies could significantly reduce clearance delays experienced by SMEs.
