High logistics costs lock Kenyan SMEs out of African market: study
The Logistics Study Report by the Kenya Association of Manufacturers, 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 Continent..
✨ Key Highlights
A new study released on Monday by the Kenya Association of Manufacturers (KAM) reveals that high and unpredictable logistics costs are preventing Kenyan Small and Medium Enterprises (SMEs) from fully accessing African markets, despite the African Continental Free Trade Area (AfCFTA).
- High logistics costs, including border delays, infrastructure gaps, and expensive freight, often negate the benefits of tariff reductions under the AfCFTA.
- The Kenya Association of Manufacturers (KAM), an umbrella body for Kenyan industrialists, conducted the study.
- KAM Chief Executive Officer Tobias Alando highlighted that border procedures are a significant source of these costs and unpredictability, emphasizing that improved coordination among border agencies could ease clearance delays.
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MPs Approve Treasury Receiving Sh240bn From Safaricom Share Sale - March 2026
Kenyan MPs have approved the sale of a 15 percent government stake in Safaricom to South Africa's Vodacom, paving the way for the National Treasury to receive approximately Sh240 billion. This comes as Kenya's fiscal stability faces threats, with the Controller of Budget Margaret Nyakang'o warning of a deepening debt cycle. The nation's public debt has surged to Sh12.29 trillion, significantly exceeding the legal threshold. Meanwhile, a study by the Kenya Association of Manufacturers reveals that high and unpredictable logistics costs are preventing Kenyan SMEs from fully accessing African markets despite the African Continental Free Trade Area.
