Competition isn’t waiting, neither should Nairobi

Update: 2025-03-09 03:30 GMT

Nairobi is Africa’s key perishables gateway, but rising freight costs, capacity constraints, and infrastructure gaps threaten its dominance. With the right investments and collaboration, it can solidify its position as a global logistics powerhouse. The question is—will it act in time?

At the heart of Africa’s perishables trade, Nairobi stands as a logistics giant, moving thousands of tonnes of fresh flowers, fruits, and vegetables to global markets. With Jomo Kenyatta International Airport (JKIA) serving as the primary export gateway, the city has become a key air cargo hub for Eastern and Central Africa.

But can Nairobi sustain its ambitious position as Africa’s logistics capital? Can its infrastructure, air freight capacity, and regulatory framework keep pace with growing export demands? While investments have transformed the city’s logistics landscape, challenges remain. Stakeholders across the supply chain — shippers, forwarders, handlers, airlines, and government agencies — must work together to unlock Nairobi’s full potential.


“The contribution of Nairobi to the national economy is over 50%. It houses major financial institutions, UN agencies, and a growing number of businesses that rely on efficient logistics.”
Agayo Ogambi, Shippers Council of Eastern Africa

Gateway of East & Central Africa
Nairobi’s strategic location, robust air connectivity, and well-developed cold chain infrastructure make it the undisputed hub for Africa’s perishables industry. The city serves as a crucial link for exporters not just in Kenya, but across the region.

Agayo Ogambi, CEO of the Shippers Council of Eastern Africa, highlights Nairobi’s economic and logistical significance, "Nairobi is the industrial city of Kenya, with 60 percent of port throughput destined for the city. This clearly shows its significance as a logistics hub for Eastern and Central Africa."

"The contribution of Nairobi to the national economy is over 50 percent. It houses major financial institutions, UN agencies, and a growing number of businesses that rely on efficient logistics," he adds.

With its well-established perishables trade, Nairobi boasts one of Africa’s most sophisticated cold chain ecosystems. Jessie Brar-Patel, CEO of Fresh Flow Logistics, notes the progress made over the years, "Nairobi’s freight forwarders have invested in their own infrastructure — cold storage, vacuum coolers, and solar-powered facilities — so we are no longer fully dependent on ground handlers for processing cargo."

Infrastructure developments have further strengthened Nairobi’s position. Lasitha Perera, Head of Business Development & Commercial—Perishables at EFL Global, sees these advancements as crucial. "Infrastructure investments like the expressway and railway system have significantly improved logistics efficiency," he said.

The expansion of warehousing facilities near JKIA and the Inland Container Depot (ICD) has strengthened Nairobi’s storage capacity, offering modern logistics solutions that cater to the growing perishables sector. "We have seen an enormous increase in modern warehousing facilities near JKIA and the ICD, which is a positive step for Nairobi’s logistics sector," notes Ogambi.

"The expansion of infrastructure in Nairobi, including the expressway, Southern Bypass, and the Eastern Bypass, demonstrates the city's importance as a logistics and trade centre," he adds.

Beyond road and rail, JKIA remains the crown jewel of Nairobi’s logistics sector. "JKIA has seen an increase in scheduled flights, with carriers like Lufthansa, British Airways, Brussels Airlines, Emirates, Qatar, and Etihad expanding their operations, giving us more connectivity and opportunities to move perishables globally," adds Brar-Patel.

Nairobi is not just a hub for Kenya—it’s a crucial link for neighbouring landlocked countries. Patrice Ngenga, Technical, Standards, and Compliance Officer at the Fresh Produce Exporters Association of Kenya (FPEAK), explains: "We are a crucial point for fresh produce exports in Eastern Africa and we have the capacity to serve not just Kenya but also cater to other countries like Uganda, Rwanda, and Burundi."

Continuous investments in technology and automation also fuel Nairobi’s success as a logistics hub. Industry leaders are optimistic about the role of digital tracking, temperature monitoring, and AI-driven logistics planning in making supply chains more predictable and efficient. "The industry needs to embrace technology—better tracking, automation, and improved coordination can make Nairobi a truly world-class logistics hub," says Ngenga.

This combination of infrastructure, air connectivity, and regional demand has cemented Nairobi’s dominance in air cargo. However, growing pains threaten to slow its momentum.


"If we don’t invest in better road networks and reduce transit time from farms to the airport, we will continue to lose product quality before takeoff."
Okisegere Ojepat, Fresh Produce Consortium of Kenya

Nairobi’s fragile supply chain
For all its advantages, Nairobi’s air cargo sector is struggling with capacity shortages, high freight costs, and unpredictable disruptions. The single biggest issue? A shortage of freighter space.

In late 2024, a sudden drop in air cargo capacity left exporters scrambling. "In November and December 2024, when freight capacity from Nairobi to Europe dropped by 35 percent, exporters were forced into an impossible situation. We had the product, we had the customers, but we couldn't get enough space at sustainable rates," reveals Raphael Kiptis, Head of Finance at Sian Roses.

Freight rates have become a rollercoaster for exporters. Perera echoes this concern: "Flower growers are struggling with high freight costs. The prices they receive at the auction don’t always justify the increased shipping costs, making it difficult for them to remain profitable."

The issue is compounded by competition for freighter space. Brar-Patel notes that Nairobi is losing capacity due to the rising demand for e-commerce shipments from Asia: "In Q4 2024, over 1,000 tonnes of cargo capacity was pulled from Nairobi overnight due to e-commerce demand in China. It left us scrambling for space, and the government did little to intervene."

Beyond air capacity, Nairobi’s cold chain infrastructure is unevenly developed. While JKIA boasts world-class facilities, pre-cooling infrastructure at the farm level remains a weak link. Ngenga acknowledges the gap: "Most small-scale farmers don’t have access to pre-cooling, which affects product quality before it even reaches the airport."

Another challenge is congestion at JKIA, which can delay cargo clearance and affect delivery timelines. Chris Goodsir, CEMEA Operations Support – Cargo at Swissport, emphasises the need for better planning: "When air freight capacity drops unexpectedly, handling facilities face massive backlogs. We need better forecasting and planning to ensure perishable goods don’t get stranded."

There is also a major issue with last-mile connectivity. Poor road networks in certain regions make it difficult for produce to reach JKIA in optimal condition. Okisegere Ojepat, CEO of the Fresh Produce Consortium of Kenya, highlights the importance of improving farm-to-airport logistics: "If we don’t invest in better road networks and reduce transit time from farms to the airport, we will continue to lose product quality before takeoff."

Further complicating matters is the imbalance between imports and exports. Many flights arrive in Nairobi filled with cargo but leave nearly empty, driving up costs for outbound freight. Ojepat warns: "If we don’t find ways to balance imports and exports, Nairobi will continue to face unsustainably high air freight costs."

The ripple effect of these challenges is clear—logistics inefficiencies are eroding Kenya’s competitiveness in global markets.


"Nairobi is not just a hub for Kenya—it’s a crucial link for neighbouring landlocked countries. We are a crucial point for fresh produce exports in Eastern Africa and we have the capacity to serve not just Kenya but also other countries like Uganda, Rwanda, and Burundi."
Patrice Ngenga, Fresh Produce Exporters Association of Kenya

The road to improvement
To maintain its position as Africa’s top logistics hub, Nairobi must address these capacity and cost constraints through better planning, infrastructure investment, and government policy changes.

One immediate solution? Expand air freight capacity. Ojepat stresses the need for alternative export points: "We need to work with the government to activate Mombasa, Kisumu, and Eldoret airports so that Nairobi is not the only point of exit."

Another priority is reducing freight costs and attracting more airlines. Ngenga argues: "If we had more airlines operating from JKIA, we could make Nairobi a much stronger logistics hub."

Beyond air, rail transport holds untapped potential. Ngenga envisions an expanded rail network for reefer cargo: "If we can power all the wagons to handle reefer containers, it will be a game-changer for fresh produce exports. Right now, only 20 wagons have this capability, which is far from enough."

Industry players also emphasise better coordination among logistics stakeholders. Kiptis warns: "We need to stop operating in silos. If all stakeholders in the supply chain can communicate better and align their strategies, we can find sustainable solutions to these ongoing issues."

Finally, diversifying cargo flows is crucial to stabilising outbound freight rates. Ojepat suggests: "If more inbound cargo comes into Nairobi, we will have better outbound rates. Right now, too many flights leave Nairobi with only perishables, and that imbalance makes freight expensive."


“Nairobi’s freight forwarders have invested in their own infrastructure — cold storage, vacuum coolers, and solar-powered facilities — so we are no longer fully dependent on ground handlers for processing cargo.”
Jessie Brar-Patel, Fresh Flow Logistics

The future of Nairobi
For all its challenges, Nairobi remains poised for growth. With the right investments, regulatory support, and industry collaboration, it can solidify its role as Africa’s premier logistics hub.

Industry leaders are optimistic. Goodsir states: "If we can improve Nairobi’s cargo handling speed and efficiency, we can solidify its position as a top logistics hub for perishables in Africa."

Nairobi has all the makings of a world-class logistics hub — strategic location, growing infrastructure, and a well-established perishables trade. But potential alone is not enough. The city is at a crossroads. The choices made today — by policymakers, logistics providers, airlines, and exporters — will determine whether Nairobi cements its place as Africa’s premier air cargo gateway or struggles under the weight of its challenges.

The demand for efficient, cost-effective, and sustainable logistics solutions is only going to increase. If Nairobi wants to stay ahead, it must tackle capacity constraints, streamline regulatory processes, invest in multimodal transport, and strengthen collaboration among industry players. The competition isn’t waiting, and neither should Nairobi.

The world is watching. The industry is evolving. The opportunity is here. The question is — will Nairobi rise to the occasion and transform itself into the logistics powerhouse Africa needs it to be?

The article was originally published in The STAT Trade Times.

Tags:    

Similar News