Kenya’s growing importance as a global hub for trade explains why the nation has been experiencing the fastest rise in foreign direct investment in the continent. Speaking specifically about the logistics sector, a number of international companies acquiring local players in Kenya is a clear indication of the lucrative nature of the business here, particularly with perishables.
“The national government in conjunction with my office is working towards ensuring Nairobi becomes a logistics hub for both imports and exports,” he announced. “A lot of infrastructure developments have been undertaken, including major road bypasses, the standard gauge railway, and the upgrade of Jomo Kenyatta International Airport.”
A number of multinational freight forwarders are acquiring Kenyan companies to tap into the lucrative perishables market. Recently, the world’s third largest logistics company, Japan’s Nippon Express, launched a subsidiary office in Kenya. Nippon Express has been making use of local agents for the export of home-grown (Kenyan) cut flowers and roses.
The firm announced that it will be putting in place a structure to meet the needs of customers in Kenya and the rest of East Africa, where sustained growth is expected.
“A standard-gauge railway connecting Nairobi with Mombasa was opened in June 2017 and, with transport by freight train now available, logistics demand is expected to rise due to the reduction in time and cost for transport inland from Mombasa Port,” the firm said in a statement.