Project Logistics Company Kenya

The Future of Freight Forwarding Industry in Kenya

The Future Of Freight Forwarding Industry In Kenya
  • 13th June 2020

The future of freight forwarding companies is bright and hopeful. This is because of factors such as the country’s increased infrastructure, strategic location, among other factors. If you check out a company such as Siggol Logistics, you will notice its main offices are strategically located at large ports such as Mombasa and Dar es Salaam having given them the edge when it comes to offering clearing and forwarding services .

The reasons why Logistics Companies can expect a good future in the Freight Forwarding industry in Kenya are because of the following:


Kenya is the world’s gateway to East Africa and its capital Nairobi is one of the most vibrant international trading hubs in Africa. Mombasa Port is crucial for international trade for not just Kenya but other neighboring landlocked countries such as Uganda, Rwanda and South Sudan. A new Lamu Port is under development along with a LAPSSET Corridor, which is expected to further open up Kenya to international trade.


Improving infrastructure in the country happens to be a key growth driver for the logistics industry of the county. The government of Kenya has allocated billions for the transport developmental projects. The willingness of international players to enter the market has made Kenya step up their logistics infrastructure and spending.


For an import-oriented country like Kenya, it is all the more crucial to participate in international initiatives towards trade relations. Kenya is a member of COMESA and the EAC along with having signed various trade agreements like ACP, AGOA, and AFCFTA. Therefore, Kenya has free access to the entire African market as well as the Asian, European and North American markets for a number of goods.


Kenya has a stable political climate and cheap labor availability. Factors such as these and a number of reforms related to credit access, taxes, construction permits, make Kenya a lucrative destination for new entrants.


While GPS and Control Towers are standard practices in logistics in developed countries, it is employed by only big domestic players and international companies in Kenya. Supply chain visibility has become an increasing demand of clients and freight forwarders in Kenya are also stepping up to new technologies.

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