The Kenya Association of Manufacturers (KAM) has warned that logistics costs across major African trade corridors remain so high and unpredictable that they routinely exceed the savings generated by African Continental Free Trade Area tariff reductions.
A logistics study report released March 30 by KAM found that transporting a 20-foot container along the Nairobi–Lusaka corridor costs between $3,500 and $7,000, with transit times ranging from eight to 30 days.
The AfCFTA, which entered into force in 2021, aims to create the world’s largest free trade area by eliminating tariffs on 90% of goods traded among 54 signatory states.
Economists have long cautioned that nontariff barriers, including logistics inefficiencies, could limit the agreement’s practical impact.
KAM Chief Executive Tobias Alando said the challenge had moved beyond market access. “It is no longer just access, but the cost, efficiency, and predictability of moving goods,” he said.
Harriet Ngo’k, KAM SME Hub chair and founder of Harriet Botanicals, cited the disproportionate burden facing small and medium enterprises.
“I export to over 50 countries, and the cost of moving goods is one of the biggest challenges we face as SMEs,” she said.
“For products worth 30,000 Kenyan shillings (about $233), it costs me 14,000 Kenyan shillings ($108) to get them to Rwanda and 17,000 Kenyan shillings ($132) to Nigeria,” she added.
Kenya’s State Department for Trade Principal Secretary Juma Mukhwana acknowledged the structural barriers and pointed to government investments in the Standard Gauge Railway and county aggregation and industrial parks as part of an ongoing response.
TradeMark Africa Country Director Lilian Mwai said the report identifies specific interventions needed to unlock intra-African trade and provides a practical roadmap for policymakers and the private sector.
