Transportation & Logistics

The transport sector in Kenya is a very vital sector as it supports a rapidly-growing economy as envisaged in the Kenya Vision 2030.  The sector grew by 8.8% in 2016 compared to 7.1% in 2015. Therefore the Government will continue to sustain and expand the on-going public investments in road, rail and air transport subsectors.

Kenya’s logistics market has continued to develop over the past decade, from the typical low specification warehouses commonly identified as ‘godowns’, to higher quality A- and B-grade warehouses. Transport and Logistics users occupy the highest market share of approximately 26%,

The bilateral and free trade agreements with various countries, along with involvement in initiatives such as COMESA, ACP and AGOA, trade is expected to improve substantially. With the African Continental Free Trade Agreement, Kenya now has free access to the entire African market. This year direct flights to the US have commenced thus increasing market access in the region.

  • KSh 180.9 billion have been allocated for on-going roads construction projects as well as the rehabilitation and maintenance of roads. KSh 55.8 billion have been provided for the completion of Phase 2A of the SGR, KSh 11.0 billion for the LAPSSET Project; and KSh 7.2 billion for the Mombasa Port Development Project.
  • The Nairobi County government has announced plans to reduce levies for foreign investors as it seeks to transform the city into a global investment destination. Kenya has also promised global investors facilitation to acquire land for setting up SEZs. The SEZs will be established in Mombasa (including Dongo Kundu Free Port), Lamu and Kisumu.
  • With increase in e-commerce shipments revenue from the Courier, Express and Parcel market is expected to double