How is Kenya becoming an important global trade & logistics hub?
Kenya is reshaping its trade and logistics sector with $1.7Bn UK trade and $3.1Bn UAE non-oil trade, fueled by strategic reforms and infrastructure growth.
Kenya stands at a critical juncture in global trade and logistics, emerging as a key player in cargo movement, transport infrastructure and supply chain management. At the heart of Kenya’s economic growth lies its expanding logistics network, strategic location, and improving trade partnerships. The country is reshaping its trade landscape with $1.7 billion in UK trade, and $3.1 billion in UAE non-oil trade. As Africa’s connectivity hub, Kenya’s ability to facilitate the seamless movement of goods, services and investments is critical to its long-term economic success.
Industry leaders are also recognising Kenya’s growing importance in global trade. For instance, Khalid Al Hinai, Vice President of Cargo Commercial, Africa and GMEI at Emirates SkyCargo, mentioned, “Since our very first flight to Nairobi in 1995, Kenya has been a priority market for Emirates SkyCargo, due to its strategic location, economic growth, and developing infrastructure. Positioned along the Indian Ocean, Kenya is a gateway for trade between Africa, the Middle East, Asia, and Europe, particularly in key sectors such as agriculture and horticulture.”
“Kenya’s air cargo sector is primarily export-driven, with annual volumes ranging between 350,000 and 400,000 metric tonnes.”
Racheal Ndegwa, Swissport Kenya
Similarly, Stanislas Brun, Vice President Cargo at Etihad Cargo, described the country as "one of the most dynamic air cargo markets in Africa, offering strong export potential across multiple sectors." He highlights that Etihad Cargo supports Kenya’s thriving floriculture industry, moving over 500 tonnes of fresh flowers from Nairobi to Europe for this year’s Valentine’s Day and Mother’s Day through six dedicated charter flights. "Kenya’s floriculture and fresh produce industries give it a unique position in global trade, supplying markets worldwide with premium-quality exports," he added.
Kenya’s agricultural sector continues to drive export growth, with flowers, fresh fruits, vegetables and meat making up a significant portion of outbound air cargo. Etihad Cargo alone transports approximately 95 tonnes of flowers from Nairobi each week, ensuring global distribution through its Abu Dhabi hub. "Our operations from Kenya are designed to support exporters with direct and efficient routes. We connect Nairobi to Amsterdam for European flower markets, the UAE and GCC for perishables and e-commerce, and a global network via Abu Dhabi, ensuring seamless access to Asia, Australia, and North America,” mentioned Brun.
He further added, "Etihad Cargo capitalises on Kenya’s strong agricultural output by providing dedicated freighter capacity and optimised transit times, ensuring seamless deliveries to key destinations.”
Similarly, Zlatko Zlatic, Head of Cargo Sales and Handling - Eastern Africa at Lufthansa Cargo, sees tremendous potential in Kenya’s trade and logistics. "Trade in Kenya is closely dependent on the agricultural and economic development of the country. As we are currently seeing a lot of infrastructural development, we estimate significant potential in logistics as well," he notes. Lufthansa Cargo plays a crucial role in airfreight logistics, utilising ten flights per week to transport flowers, vegetables, fruits, coffee, tea, fish and live tropical fish. "During high-demand periods, such as Valentine’s Day, we add extra capacity to meet market and customers’ needs. For example, we have added seven extra 777F connections from the end of January to early February to transport flowers for Valentine’s Day," Zlatic highlights.
“Kenya is one of the most dynamic air cargo markets in Africa, offering strong export potential across multiple sectors.”
Stanislas Brun, Etihad Cargo
“Kenya’s air cargo sector is primarily export-driven, with annual volumes ranging between 350,000 and 400,000 metric tonnes,” mentioned Racheal Ndegwa, CEO of Swissport Kenya. However, Kenya is a key trade hub in East Africa, even beyond air cargo, and it is strategically positioned to connect regional markets to global trade routes. The Port of Mombasa, East Africa’s largest port, along with a robust road and rail network, facilitates trade across Uganda, Rwanda, Tanzania, Burundi and the Democratic Republic of Congo.
Kenya’s export landscape and infrastructure growth
In terms of trade performance, Kenya recorded $664 million in exports in November 2024, slightly down from the previous month, reflecting the impact of global and local economic shifts, according to a report by Centre for Economic and Industry Competitivenes (CEIC). Agricultural products, including tea, coffee, flowers and fresh produce, remain central to Kenya’s exports. However, a 3.4% annual drop in exports underscores the need for greater diversification. Meanwhile, imports amounted to $1.8 billion, leading to a $1.1 billion trade deficit in November last year. Despite this imbalance, Kenya continues to attract Foreign Direct Investment (FDI) and expand trade agreements, improving its position in global commerce.
According to a UNICEF 2023 report, Kenya’s population of around 47.6 million, with nearly 46% under 18, offers a dynamic and youthful workforce. However, the country also faces challenges such as food insecurity and climate-related issues, including recurrent droughts and floods.
To aid in such challenging situations, international organisations like the United Nations come to help. Even airlines like Emirates SkyCargo play a vital role in humanitarian logistics, transporting food, medical supplies, vaccines, and shelter materials during natural disasters. “With an all-widebody fleet and specialist solutions, Emirates ensures a steady supply chain for aid organisations, supporting both emergency relief and long-term reconstruction efforts across Africa,” mentioned Al Hinai of Emirates SkyCargo.
Despite these hurdles, Kenya’s infrastructure investments and growing trade partnerships position it as a key economic player in East Africa. Port modernisation and the Standard Gauge Railway (SGR) from Mombasa to Nairobi have improved freight efficiency, with planned extensions to Uganda and South Sudan further boosting export capabilities, according to a BMI Research report. Meanwhile, road freight growth in 2025, driven by increased demand for refrigerated containers, is set to strengthen horticulture exports.
“Kenya is a gateway for trade between Africa, the Middle East, Asia, and Europe.”
Khalid Al Hinai, Emirates SkyCargo
With rising air cargo demand, particularly for perishables like flowers and avocados, expanding airport infrastructure at Jomo Kenyatta International Airport (JKIA) is critical to maintaining Kenya’s position as a regional logistics hub.
How prepared is Kenya’s air cargo sector
Kenya’s air cargo industry is a critical pillar of its logistics sector, facilitating cross-border trade and economic growth. During a recent interaction, Bonface Muse, Cargo Commercial Officer at JKIA mentioned, "Kenya handles approximately 400,000 tonnes of air cargo annually across all airports, with cut flowers, fruits, vegetables, meat, and fish being the primary exports." He also highlighted that JKIA remains the main cargo hub in East, Central and West Africa, featuring five dedicated cargo terminals with state-of-the-art handling facilities.
Emphasising the role of air cargo in regional trade, Muse mentioned, "JKIA serves as a major transit hub for goods moving between Europe, the Middle East, and the Far East, feeding the hinterlands of East, Central, and West Africa. KAA supports this by continuously improving facilities and creating a conducive business environment for air cargo trade."
Regarding key airports supporting cargo operations in Kenya, Muse explained, "JKIA is the main cargo hub, followed by Moi International, then Kisumu and Eldoret, with Wilson Airport serving domestic cargo needs. Currently, upgrades to the cargo terminals in Mombasa and Eldoret are ongoing to enhance efficiency."
While mentioning that Eldoret Airport, in particular, holds significant potential, Muse stated, "The expansion of Eldoret’s runway for heavy freighters is a major step forward. Being in an agriculturally rich zone, Eldoret is a key source of horticultural and floricultural exports, making it a strategic cargo hub.”
Despite Kenya’s strong cargo handling capacity, infrastructure challenges remain. "JKIA has excess capacity in air cargo handling, currently utilising only 40%, but cargo parking bays are overstretched," Muse added. "Plans are underway to expand and modernise Eldoret and Mombasa airports’ cargo facilities to meet growing demand."
However, challenges persist. "One of the biggest issues is the lack of freighter capacity. In late 2024, several freighters pulled out to more lucrative routes like Asia-Europe-Americas," Muse noted. "Air cargo in Africa remains underutilised, accounting for less than 3% of the global market. Additionally, inbound freighters often arrive almost empty, making operations costly for airlines."
“Taxes and airport fees are primarily the biggest challenges for us.”
Zlatko Zlatic, Lufthansa Cargo
Kenya’s airport infrastructure, especially JKIA plays a crucial role in supporting efficient air cargo operations, particularly for perishables. Mombasa International and Wilson Airport also contribute to regional cargo movements. Significant improvements at JKIA, such as expanded cold storage facilities and enhanced cargo handling, have bolstered Kenya's position as a regional cargo hub.
However, challenges persist, including congestion, cold chain integration, and the need for advanced warehousing technology. According to Al Hinai of Emirates SkyCargo, "While infrastructure improvements are ongoing, continued expansion is crucial for Kenya’s position as a leading air cargo hub."
According to Lufthansa Cargo’s Zlatic, Nairobi airport has a strong logistics ecosystem, but there is still room for improvement in handling specialised freight like cooled shipments. He also pointed out that high operational costs, particularly taxes and airport fees, remain significant challenges, adding, "We are in constructive dialogue with authorities to make services in this region more competitive."
On the other hand, Swissport’s Ndegwa highlighted that while cargo warehouses at JKIA now meet international standards, apron space limitations and overcapacity in ground handling remain bottlenecks. Expanding apron areas, runways, and developing secondary airports like Eldoret and Mombasa are essential to accommodate growing cargo volumes. The spokesperson also emphasised the need to address cold chain gaps, regulatory bottlenecks, and skilled labour shortages through collaboration between airlines, ground handlers, freight forwarders and regulators for sustainable growth.
Brun added that while Kenya is a "well-supported cargo market," regulatory complexity can be a hurdle. "The government has been highly supportive of air cargo growth, and we continue working with stakeholders to improve efficiencies," he said.
To address air cargo challenges, the Kenya Airports Authority (KAA) is actively engaging stakeholders, implementing joint marketing strategies, and offering favourable terms to attract airlines, as Muse explained. The National Aviation Policy 2024 also plays a key role in ensuring safe, affordable, and sustainable cargo transport, with efforts underway to improve the airport user experience.
Public-private partnerships (PIPs) are driving growth, with the government supporting joint ventures to address fiscal deficits and improve logistics infrastructure. Muse highlighted the success of air cargo terminals as a prime example of these collaborations.
"Kenya handles approximately 400,000 tonnes of air cargo annually across all airports, with cut flowers, fruits, vegetables, meat, and fish being the primary exports.”
Bonface Muse, JKIA
The Etihad Cargo spokesperson emphasised the role of government support in creating a business-friendly environment while also calling for further investment in road and rail connectivity and digital trade facilitation to improve efficiency.
On the other hand, Brun from Etihad Cargo stressed the importance of cross-industry collaboration, stating, "Stronger partnerships between airlines, logistics providers, and technology firms will be key to driving efficiency. Investing in digital solutions, such as advanced tracking and automation, will further enhance operations and maintain Kenya’s competitive edge as a global logistics hub."
Zlatic also echoed the importance of collaboration: "Understanding each other's needs helps find cross-industry solutions. It’s important that all parties contribute ideas and remain in constant dialogue."
How strategic trade agreements are driving Kenya ahead
The East African country is solidifying its position as a logistics hub through strategic trade agreements, most notably the Kenya-UAE Comprehensive Economic Partnership Agreement (CEPA) signed in January 2025. This agreement allows for duty-free access for Kenyan exports like tea, coffee, and cut flowers into the UAE market, which is expected to boost demand for these agricultural products.
Furthermore, Kenya's involvement in the African Continental Free Trade Area (AfCFTA) is opening doors to a market of over 1.3 billion people in 54 African nations, providing manufacturers and exporters with enhanced access to a more diverse clientele. Additionally, Kenya has established bilateral trade agreements with the European Union and the United Kingdom, ensuring continued favourable trade conditions with significant global economies.
The trade relationship with the UK is particularly noteworthy, with total trade in goods and services reaching £1.7 billion in the four quarters leading to Q2 2024, marking a 10.2% increase from the previous year. UK exports to Kenya totalled £698 million, while imports from Kenya climbed to £956 million, leading to a reported trade deficit of £258 million for the UK, primarily due to a rise in service trade deficits.
Overall, Kenya's strategic trade initiatives are set to diversify its exports, reduce its trade deficit, and foster sustainable economic growth.
Kenyan way of overcoming challenges and seizing opportunities
With growing trade partnerships, major infrastructure projects and a focus on diversification, the country is set to enhance its global trade footprint. The Kenya-UAE partnership and other similar agreements are expected to boost exports, particularly in sectors like agriculture and technology. Additionally, investments in transport infrastructure, including the Port of Mombasa, rail freight, and air cargo, will improve logistics.
Looking ahead to 2025, JKIA’s Muse highlights key air cargo trends: "E-commerce airfreight, a sea-air cargo terminal in Mombasa, decarbonisation, and increased accessibility through the Single African Air Transport Market (SAATM)."
“Key growth opportunities include expanding e-commerce logistics, developing secondary airports (Mombasa, Eldoret, Isiolo, and Kisumu), and enhancing value-added services such as integrated cargo solutions and last-mile delivery,” added the Swissport spokesperson.
E-commerce is anticipated to be a game changer as Brun from Etihad Cargo also mentioned, "Rapid growth is driving demand for fast and flexible air freight." However, the East African nation is looking beyond e-commerce and diversifying its export portfolio. "There is growing demand for high-value shipments such as printed materials and specialised agricultural products, including premium roses, pineapples, and select avocados," added Brun.
With strategic investments, global partnerships, and innovation, Kenya is poised to unlock new opportunities in e-commerce, high-value exports, and sustainable logistics. Moreover, with major trade events like Air Cargo Africa (Feb 19-21, 2025), Flower Logistics Africa (March 31, 2025), and Perishable Logistics Africa (April 1, 2025) taking place in Nairobi, Kenya is solidifying its position as a leading logistics hub in Africa.
