A study released on Monday, March 30, by the Kenya Association of Manufacturers (KAM) reveals that high and unpredictable logistics costs are significantly limiting Kenyan small and medium enterprises (SMEs) from fully benefiting from opportunities under the African Continental Free Trade Area (AfCFTA).
The report indicates that despite expanded market access across 54 countries, inefficiencies such as border delays, infrastructure deficits, elevated freight charges, and weak cargo consolidation systems continue to constrain SME participation in intra-African trade.
It further highlights that existing logistics frameworks—spanning road, maritime, and air transport—are tailored to high-volume shipments, placing SMEs at a disadvantage due to higher per-unit costs and weaker negotiating leverage.
KAM Chief Executive Officer Tobias Alando identified border procedures as a major contributor to cost volatility, stressing that enhanced coordination among border agencies could streamline clearance processes and reduce delays for SMEs.