Page 10 - LUA March-April 2025

COVER STORY

make it difficult to establish cold chain particularly in rail connectivity to the
infrastructure in rural areas. Mombasa port. Although the Standard
To address this, Ojepat emphasises Gauge Railway (SGR) offers a faster
the need for public-private partnerships alternative to road transport, its limited
to invest in solar-powered cold storage capacity for reefer (refrigerated) containers
units and improve access to refrigerated remains a challenge. “Only 20 wagons
transport. “Without proper first-mile on the SGR are equipped for refrigerated
cooling, we risk compromising the quality cargo, which is insufficient given the
of our produce before it even reaches the volume of fresh produce moving to the
pack house,” he noted. port,” Ngenga said.
Ngenga reminded, “If the cold chain is Growers are investing Kenya Railways has committed to
broken during transport, the benefits of pre- expanding reefer capacity, but until
cooling at the farm level are lost.” significant money in that happens, many exporters must rely
The government and private sector must production, but the on costly trucking solutions, further
invest in refrigerated transport solutions high cost of logistics increasing logistics costs. “There are
and improve road infrastructure to ensure ongoing test trials to move reefer
produce arrives at processing hubs in is squeezing their containers by rail, which will help address
optimal condition. profit margins. the challenges of carbon emissions and
On the positive side, over the past 25 transport efficiency,” Ogambi noted.
years, Kenya’s perishable logistics ecosystem LASITHA PERERA “We’ve seen major improvements with the
EFL GLOBAL
has undergone major infrastructure Nairobi expressway and plans for a highway
advancements, according to Brar-Patel. to Mombasa, which will drastically improve
Freight forwarders now have their own Mombasa International Airport, despite cargo movement,” Perera added. “The ability
cold storage and vacuum cooling facilities handling return charter flights from Europe, to efficiently move goods between Kenya,
rather than relying solely on ground is not widely used for perishables because Uganda, Tanzania, and Rwanda is critical for
handlers. Growers have invested in farm- there is no local cold chain ecosystem to trade diversification,” he added.
level cold storage to maintain product support fresh produce exports. Talking about diversification, Kenya’s
quality from harvest to shipment. Road Caleb Kositany, Chair of the Board, Kenya perishable exports remain heavily reliant
infrastructure improvements, including Airports Authority, emphasised Kenya’s on the European market, leaving exporters
Nairobi’s expressway, have reduced transit commitment to multimodal transport vulnerable to economic shifts and regulatory
times for perishable goods. “The biggest integration, which is crucial for both intra- changes. However, the industry is actively
transformation has been in temperature- African and global trade. seeking new destinations in Asia, the Middle
controlled transport. Today, growers use He was speaking during the inaugural East, and North America.
refrigerated trucks to ensure a seamless cold session of the recently concluded air cargo
chain, which was unheard of two decades Africa and transport logistic Africa 2025 MARKETS BEYOND EUROPE
ago,” Brar-Patel noted. in Nairobi. While Kenya has secured market access to
Meanwhile, Perera highlighted the need A key initiative in this direction is India and China for avocados, high import
for continued investments in first-mile the development of a sea-air terminal at tariffs (30% in India) and strict fumigation
cooling solutions at farms and logistics hubs. Moi International Airport in Mombasa, requirements in China have made these
“Pre-cooling is essential to extending shelf which will allow inbound sea freight to markets less attractive. “We are working with
life. The more growers and logistics providers be seamlessly transferred to air cargo the government to negotiate lower tariffs
invest in vacuum cooling, the better the for rapid distribution to landlocked East in India and seeking alternative treatment
product quality in the final market,” he said. African countries. “Investors should pay methods for China to avoid quality
Kenya has several regional airports attention to Mombasa. Once this facility deterioration,” Ngenga stated.
that could ease the burden on JKIA, yet is operational, it will transform the speed Despite these hurdles, the UAE and
most remain underutilised, again, due to and efficiency of cargo movement in the South Korea are emerging as promising
infrastructure gaps. Mombasa, Kisumu, and region,” Kositany said. markets. Ojepat believes diversifying to
Eldoret airports could play a significant role Kenya is also leveraging its strategic India, China, and the Middle East is critical
in decentralising perishable exports, but they location by improving road infrastructure, for long-term sustainability.
lack essential facilities. such as the Lamu Port-South Sudan- Africa’s perishable exports hold immense
Ethiopia Transport (LAPSSET) Corridor potential but face logistics hurdles—from
INTEGRATING AIR, and expanding Isiolo International Airport high costs and air freight shortages to cold
RAIL, ROAD as a vital regional logistics hub. “Isiolo’s chain gaps. Strengthening collaboration,
“Kisumu is surrounded by agricultural location in the heart of Kenya makes it an investing in multimodal transport, and
counties, but without proper cold chain ideal hub for air cargo distribution across improving infrastructure are key to
facilities, exporters are forced to transport Africa,” he added. unlocking growth. With the right strategies,
produce over 450 kilometres to Nairobi,” Kenya’s push for more sea freight Africa can build a resilient supply chain and
Ojepat said. exports is hindered by infrastructure gaps, expand its global reach.

8 LUA MARCH - APRIL 2025