Kenya’s manufacturing sector has sounded the alarm over crippling logistics bottlenecks that continue to erode competitiveness and block small and medium-sized enterprises (SMEs) from fully benefiting from the African Continental Free Trade Area (AfCFTA).
The concerns were raised during the launch of the Logistics Study Report by the Kenya Association of Manufacturers (KAM), which revealed that the cost of moving goods across Africa remains high and unpredictable, often outweighing the benefits of reduced tariffs under AfCFTA.
While the trade pact has opened access to a market spanning 54 countries, Kenyan manufacturers say structural barriers are preventing them from seizing the opportunity. The study points to border inefficiencies, weak infrastructure, high freight charges, and limited cargo consolidation systems as the biggest hurdles.
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Industry Principal Juma Mukhwana noted that the government is working to address these barriers through policy and infrastructure investments. “The work of government is to create a conducive environment for businesses to grow. Kenya’s time is now, and Africa’s time is now,” he said. He emphasized the need to shift from exporting raw materials to building value locally and regionally, citing projects such as the Standard Gauge Railway and County Aggregation and Industrial Parks as key interventions.
KAM Chief Executive Tobias Alando stressed that logistics, not market access, has become the main barrier to competitiveness. “While markets are opening, the systems that connect us to those markets are not moving at the same pace. In many cases, logistics costs now outweigh the benefits of tariff reductions, meaning products are not competitive by the time they arrive,” he said.
For SMEs, the burden is especially heavy as volatile shipping costs directly affect trade decisions.
TradeMark Africa Country Director Lilian Mwai said the study provides a roadmap for reforms. “This report goes beyond identifying challenges. It pinpoints the real bottlenecks, from high clearance costs to infrastructure delays that must be addressed to unlock intra-African trade,” she noted.
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The report recommends improved coordination among border agencies, investment in efficient infrastructure, and development of cargo aggregation systems to help SMEs reduce costs and access markets more competitively.
Manufacturers warn that without urgent reforms, the promise of AfCFTA risks remaining out of reach for many Kenyan businesses.
By Masaki Enock
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