Fresh Produce

Logistics
Study

2021

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CONTENTS
1 Background And Context ............................................................................................................... 8

2 Objectives Of The Study ................................................................................................................ 8

3 Overview Of Horticulture In Kenya ............................................................................................... 8

4 Methodology................................................................................................................................. 10

5 Study Assumptions ....................................................................................................................... 12

6 Challenges Faced During The Study ............................................................................................ 12

7 Categorization Of Exporters Large, Medium, And Small-Scale Producers. ................................ 12

8 Key Actors In Export Logistics Of Fresh Produce ....................................................................... 12

8.1 Kenya Airports Authority...................................................................................................... 12

8.2 Kenya Ports Authority........................................................................................................... 13

8.3 Kenya Maritime Authority. ................................................................................................... 13

8.4 Kenya Civil Aviation Authority ............................................................................................ 13

8.5 Kenya Revenue Authority ..................................................................................................... 14

8.6 Horticultural Crops Directorate ............................................................................................. 14

8.7 Kenya Plant Health Inspectorate Services (Kephis) ............................................................. 14

8.8 Kenya National Chamber Of Commerce & Industry (Kncci)............................................... 14

8.9 Fpeak ..................................................................................................................................... 14

8.10 Kenya Flower Council (Kfc) ................................................................................................. 15

8.11 Avocado Society Of Kenya ................................................................................................... 15

8.12 Fresh Produce Consortium .................................................................................................... 15

8.13 Airlines/Air Freighters .......................................................................................................... 15

8.14 Ministry Of Transport And Transport And Infrastructure .................................................... 16

8.15 Freight Forwarders ................................................................................................................ 16

8.16 Transit Shed Operators .......................................................................................................... 16

8.17 Kentrade ................................................................................................................................ 16

8.18 Development Partners ........................................................................................................... 17

8.19 Kenya National Electronic Single Window System ............................................................. 17

9 Scope Of The Logistics Study And Definition Of Terms ............................................................ 17

10 Factors That Affect The Competitiveness Of A Countries Exports ............................................. 18

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11 Why Is Fresh Produce Logistics Important? ................................................................................ 19

12 Logistics Performance For Kenya And Countries Within The Region ........................................ 21

13 Logistics Performance Within The Region .................................................................................. 22

14 Documents/Permits/Licences Required For Exports.................................................................... 22

15 Review Of Rail Transport............................................................................................................. 23

16 Modal Transport Share Of Fresh Produce .................................................................................... 23

17 Review Of The Current Ecosystem Of Road Transport Freight Sector ....................................... 24

17.1 Review Of Road Transport Effectiveness On Movement Of Fresh Produce........................ 25

17.2 Rural Access Index As At 2018 Survey ................................................................................ 25

17.3 Review Of Current Road Transport Trends On Movement Of Fresh Produce ..................... 26

17.4 Process Map On Exporting Goods Through The Osbp 43 Steps-To Be Converted To A Process Map
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17.5 Analysis Of Current Products Being Exported By Road. ..................................................... 27

17.6 Analysis Of Bottlenecks Within The Fresh Produce Supply Chains On Road Transport .... 28

18 Airfreight ...................................................................................................................................... 29

18.1 Overview Of Airfreight In Kenya ......................................................................................... 29

18.2 Review Of Current Air Freight Ecosystem ........................................................................... 29

18.3 Review Of Past, Current And Projected Trends On Airfreight Movement .......................... 31

18.4 Factors Affecting Airfreight Trends ...................................................................................... 33

18.4.1 Air Transport Connectivity - Kenya.............................................................................. 33

18.4.2 Air Transport Competitiveness In Kenya...................................................................... 34

18.4.3 Air Cargo Infrastructure ................................................................................................ 34

18.5 Analysis Of Major Carriers, New Callings And Factors Affecting New Callings. .............. 35

18.5.1 Scheduled Carriers ........................................................................................................ 35

18.5.2 Non-Scheduled Carriers ................................................................................................ 35

18.6 New Callings ......................................................................................................................... 35

18.7 Factors Affecting News Callings (Awaiting Data From Kcaa) ............................................ 36

18.8 Review Of Past And Current Trends Of Total Air Cargo Movement .................................. 36

18.9 Fresh Produce As A Percentage Of Total Cargo Loaded...................................................... 36

18.10 Disaggregated Movement Of Fresh Produce Between 2016 - 2020 ................................. 37

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 18.11 Air Freight Shipment Process Map ................................................................................... 38

18.12 Analysis Of Fresh Produce Movement By Air From 2017 – 2020 ................................... 38

18.13 Analysis Of Fresh Produce Destinations ........................................................................... 39

18.14 Destinations That Have Exited From 2017 And 2020 ...................................................... 40

18.15 New Destinations .............................................................................................................. 41

18.16 Analysis Of Top 20 Products Based On Number Of Shipments ...................................... 42

18.17 Performance Of Top 20 Products By Volume .................................................................. 43

18.18 Analysis On Movement Of Fruits ..................................................................................... 43

18.19 Analysis On Movement Of Vegetables ............................................................................. 44

18.20 Performance Of Vegetables By Volume Exported ........................................................... 45

18.21 Analysis On Movement Of Flowers.................................................................................. 45

18.22 Analysis Of Performance Of Flowers By Variety ............................................................ 46

18.23 Analysis Of Survey Responses Exporter’s Shipping Air. ................................................. 46

18.24 Impact Of Covid 19 On Air And Sea Freight ................................................................... 49

19 Maritime Transport....................................................................................................................... 50

19.1 Overview Of Maritime Infrastructure In Kenya ................................................................... 50

19.2 Liner Connectivity Index ...................................................................................................... 51

19.3 Licensed Shipping Lines As At 2021 .................................................................................... 51

19.4 Cargo Throughput ................................................................................................................. 52

19.5 Port Of Mombasa Registers Improved Performance In First Quarter Of 2021(Jan-Mar). ... 52

19.6 Shore Handling Services ....................................................................................................... 52

19.7 Sea Freight Export Process ................................................................................................... 53

19.8 Movement Of Fresh Produce By Sea .................................................................................... 53

19.9 Analysis Of Top Ten Destinations Of Fresh Produce By Sea .............................................. 54

19.10 Performance Of Top 10 Products ...................................................................................... 54

19.11 Declining Destinations By Sea .......................................................................................... 56

19.12 Impact Of Covid 19 On Maritime Transport From Kenya ............................................... 56

20 Export Potential Of Various Fresh Produce Products. ................................................................. 57

20.1 Analysis Of Export Potential By Region .............................................................................. 57

20.2 Kenya’s Export Potential To Europe .................................................................................... 58

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 20.3 Kenya’s Export Potential To The Pacific .............................................................................. 59

20.4 Kenya’s Export Potential To The Americas ......................................................................... 59

20.5 Products That Kenya Can Diversity Into In The Americas .................................................. 60

20.6 Kenya’s Export Potential In Africa ....................................................................................... 60

20.7 Analysis Of Export Potential By Product ............................................................................. 60

21 Recommendations ........................................................................................................................ 61

22 References .................................................................................................................................... 64

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 TABLE OF FIGURES
Figure 1-Exports in Value and Volume 2016-2020-Source HCD Validated Report .............................. 9
Figure 2-% share of fresh produce Footprint .......................................................................................... 9
Figure 3-FAO. 2019. The State of Food and Agriculture 2019. Moving forward on food loss and waste
reduction. ............................................................................................................................................... 19
Figure 4-Performance Logistics Index Kenya ...................................................................................... 21
Figure 5-World Bank Logistics Index EAC Region from 2012 - 2018 ................................................ 22
Figure 6-Rural Access Index ................................................................................................................. 26
Figure 7-Quantity by OSBP between 2016-2020 ................................................................................. 27
Figure 8-Sum of quantity by name of product via Taveta in 2020 ....................................................... 27
Figure 9-Exports through LungaLunga ................................................................................................. 28
Figure 10-Top 20 most internationally connected countries in Africa in 2019 and air connectivity growth
(2019 vs.2014) ....................................................................................................................................... 34
Figure 11-IATA Economics Briefing No.8: Aviation Economic Benefits. .......................................... 33
Figure 12-JKIA loaded vs landed cargo-Source KAA.......................................................................... 36
Figure 13-Fresh Produce as a percental of Freight Loaded. ................................................................. 37
Figure 14-Movement of Fruits, Vegetables and Flowers- Source KAA............................................... 37
Figure 15-Air cargo shipment process map .......................................................................................... 38
Figure 16-Performance of Fresh produce movement by air from 2017-2020-KEPHIS ....................... 39
Figure 17-Performance of Top 20 Destinations .................................................................................... 44
Figure 18-fruits as a percentage of total fresh produce - source HCD .................................................. 43
Figure 19-Vegetables ............................................................................................................................ 49
Figure 20-Movement of Flowers by volume – Source HCD ................................................................ 45
Figure 21-Category of Exporter and Use of Freight Forwarder............................................................ 46
Figure 22-analysis of responses from exporters .................................................................................... 47
Figure 23-Liner Connectivity Index ...................................................................................................... 51
Figure 24-% share of top ten destinations ............................................................................................. 54
Figure 25-top ten products by kgs ......................................................................................................... 54
Figure 26-Chillies and garlic movement by sea .................................................................................... 55
Figure 27-movement of watermelon and Pineapple ............................................................................. 55
Figure 28-Movement of Dried Lemons ................................................................................................ 56
Figure 29-Shipments to ITALY ............................................................................................................ 56
Figure 30-Kenya's Export Potential in general ..................................................................................... 57
Figure 31-Kenya's products with potential in Europe ........................................................................... 58
Figure 32-Kenya's diversification products to Europe .......................................................................... 58
Figure 33-Kenya's Export Potential to the pacific ................................................................................ 59
Figure 34-Kenyas export potential to the Americas.............................................................................. 59

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Figure 35-product diversification to the Americas ............................................................................... 60
Figure 36-Kenyas export potential to African Markets ........................................................................ 60
Figure 37-Products with export potential .............................................................................................. 61

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 TABLES
Table 1-Transport Modal Share ............................................................................................................ 24
Table 2-road classification network ...................................................................................................... 24
Table 3-Road Condition Mix-KRB ....................................................................................................... 25
Table 4-Scheduled major carriers-Source KAA. .................................................................................. 35
Table 5-Destinations that have exited from 2017 - 2020 ...................................................................... 40
Table 6-New Destinations ..................................................................................................................... 41
Table 7-Top 20 products ....................................................................................................................... 42
Table 8-performance of top 20 products ............................................................................................... 43
Table 9-Performance of top 20 products moved by air ......................................................................... 43
Table 10-performance of fruits by variety ............................................................................................ 44
Table 11-performance of vegetables by variety .................................................................................... 45
Table 12-performance of flowers by type ............................................................................................. 46
Table 13-List of Licensed Shipping Lines in 2021 ............................................................................... 51
Table 14-Cargo Throughput 2015-2019 - Source KNBS ..................................................................... 52
Table 15-Shipments by sea 2015-2021 ................................................................................................. 54

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1 BACKGROUND AND CONTEXT
This study is part of the Kenya Horticulture Market Access Program – COVID 19 response through
financial support from Trademark East Africa (TMEA). The program's objective is to improve
competitiveness and enhance market access for Kenya's horticultural produce by addressing critical
supply chain disruptions resulting from COVID 19. Specifically, this study seeks to conduct a logistics
and freight assessment for Kenya’s Fresh produce in order to identify existing gaps and come up with
proposals to bridge the gaps for an efficient logistics system which would enable efficient airborne and
seaborne transportation of fresh produce to the international markets. The study will entail analysis of
the air and sea freight logistics structure in Kenya by identifying bottlenecks and areas of inefficiency
that can be improved through strategic interventions, regulatory review and policy interventions that
will increase the competitiveness of international exporters who use air freight and sea freight as their
main mode of transportation.

2 OBJECTIVES OF THE STUDY

The objectives of the study as outlined in the terms of reference are:
a) Analysis of current bottlenecks within the fresh produce supply chains that could hamper the
movement of goods from farm to market.
b) Review of the current ecosystem of the air and sea freight sectors and its effectiveness in addressing
the major challenges hindering service provision to horticulture exporters.
c) Review of past, current and projected trends of air and sea cargo movement and the factors
affecting these numbers/trends;
d) Identification of the major cargo carriers, number of new callings over the past decade and the
factors affecting the new callings;
e) The major products currently being moved by air freight in Kenya, their origins and destinations
and identification of potential new products or areas of origin and destination.
f) Outline recommendations to enhance the targeted logistics segments in order to boost
competitiveness of Kenya's fresh produce exports.

3 OVERVIEW OF HORTICULTURE IN KENYA

For the last 30 years, Kenya has pursued an export-led growth economic development following the
radical shift in trade policy from an inward to an outward approach that was advocated in Sessional
Paper No. 1 of 1986 on Economic Management for Renewed Growth. This policy orientation is further
reinforced in Vision 2030 that foresees trade as a key contributor to the economic growth target rate
of 10% per year.
In addition to effort towards supporting the country's export-led economic growth strategy, the
Government of Kenya was among the first countries to have signed the WTO Multilateral Agreements.
This action further opened the horizon of Kenya's exports into the global market of over 140 countries
that are WTO members. Kenya's export growth under this multilateral arrangement stands to benefit
from numerous instruments for promoting fair international trade and transformation of Trade
Facilitation processes and procedures.
In 2018 Kenya’s horticulture subsector was valued at Kenya shillings 153.7 Billion. (KNBS, 2019),
with exports of 322.6 thousand tonnes. However, the value of marketed fresh horticultural produce
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declined by 5.9 percent, from KSh.153.7 billion in 2018 to KSh.144.6 billion in 2019(KNBS, 2020).
The decline was attributed to an 8.0 percent contraction in the value of cut flowers from KSh.113.2
billion in 2018 to KSh.104.1 billion in 2019. Similarly, the value of vegetables decreased by 1.6
percent to KSh.27.2 billion. In contrast, the value of fruits increased by 2.8 percent from KSh.12.8
billion to KSh.13.2 billion. The horticultural sector makes a significant contribution to the Kenyan
economy and is the third-highest foreign exchange earner. Figure 1 shows the sector's growth has been
on an upward trend from 2016 to 2020 as evidenced by the increase in volume and value over the
period.

Figure 1-Exports in Value and Volume 2016-2020-Source HCD Validated Report

Kenya’s fresh produce has a footprint in 147 destinations which represents 77% of the countries
globally. As a result 77% of the countries across the globe have enjoyed one of Kenya’s fresh products.
Market liberalization and growth in international trade have created export opportunities within the
horticultural sector for Kenya’s fresh produce. Kenya has met stringent requirements on sanitary and
phytosanitary standards of importing countries hence gaining access to international markets.

% OF FRESH PRODUCE FOOTPINT GLOBALLY

No Exports
24%

Fresh produce
Footpint
76%

Figure 2-% share of fresh produce Footprint

The Fresh Produce Supply Chain in Kenya has evolved as demonstrated by growth in both volume and
value of exports. Logistics has indeed been a great contributor to the success of the fresh produce from
Kenya. The World Bank Logistics Performance Index indicates that Kenya has made remarkable
achievements, as shown by the performance logistics index from 2012 to 2018. The interventions taken

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by the government towards the improvement of logistics mainly focused on policy, regulatory framework,
and infrastructure improvement, and this has been beneficial to the horticulture sector. However, despite
the interventions taken to date, logistics-related challenges continue to affect the competitiveness of
Kenya’s Fresh produce.
The Ministry of Agriculture recently recently developed the Agricultural Transformation and Growth
Strategy in 2019, and no mention is made fresh produce logistics. The movement of fresh produce in
Kenya from the farm to the port either by sea or air is done by road and using by trucks and vans,
which may or may not be refrigerated. The movement of fresh produce by road is done through private
arrangements by the respective exporters. Over 98% of fresh produce is shipped by air, and a small
portion is shipped by sea. The movement of fresh produce from the farm to the port is not regulated,
whereas movement by air and sea is regulated in accordance with international standards.
Preliminary observations indicate that fresh produce logistics is executed by many players, namely
government agencies, freight forwarders, and airline operators who work independently and do not
have any coordination framework. More specifically, government agencies involved in the
export/import of fresh produce are Kenya Airports Authority, Kenya Civil Aviation Authority, Kenya
Revenue Authority, Kenya Plant Health Inspectorate, Agriculture Food Authority, Kenya Ports
Authority, and Kenya Maritime Authority. Each of the agencies has a respective role in the supply
chain. Approximately 90% of the fresh produce is destined for Europe and is a vital trade route for
Kenya's fresh produce.

4 METHODOLOGY
Desk Review of Available Data: The fresh produce logistics is handled by a fragmented and
uncoordinated set of institutions. A thorough review of the studies to date indicates, no studies on
fresh produce logistics are available except for one in 2018 by the Netherlands Enterprise Agency.
The study focused on the airfreight logistics from Kenya to the Netherlands with respect to Kenyan
floriculture products. This study will review and analyse challenges affecting fresh produce logistics.
Several industry reports have been reviewed to identify the bottlenecks around logistics, and the efforts
make todate.
• AFA Annual Report Statistics
• Cargo Movement Statistics by Air
• Cargo Movement Statistics by Sea
• Review of Relevant legal framework
• Analysis of Export/Import Certificates to gather data on trade routes.
• Analysis of Phytosanitary certificates data to gather data of types of fresh produce
exported/imported.
• Review of Import and Export Requirements
• Review of studies on various fresh produce supply chains in Kenya
The study used a two-pronged approach to address the objectives of the study. The first approach was
a survey methodology to collect primary data using structured interview questions and key informant
interviews. The data collection focused on various categories such as freight forwarders, airports,
airlines, exporters, logistics services providers, government institutions and complementary groups
such as industry associations and chain influencers. The second approach is the analysis of data

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obtained from the various government agencies and institutions to review the past, current, and project
trends on the movement of fresh produce by sea and by air.
The analysis focused on bottlenecks affecting fresh produce supply chains such as air freight capacity;
efficiency of customs and border clearance; quality of freight infrastructure; freight costs; quality of
logistics services; timeliness; review of air and sea ecosystem; identification of new carriers; the number
of new callings and factors affecting new callings; types produce moved by sea and air; flow corridors;
freight logistics resilience and factors affecting the competitiveness of fresh produce from Kenya. The
following framework guided the study.
Desk Review Empirical Research Analysis Recommendations

• Review of current air and sea • Data collection using a Data collected Recommendations will focus
freight ecosystem on various structured will be analysed, on policy interventions
indicators such as government questionnaire and findings will required, improvements
policy, legal and regulatory • key informants’ inform the required on service delivery,
framework and institutions interviews using recommendation and interventions required for
handling freight logistics such structured questions of the study. a resilient fresh produce
as Customs, Infrastructure & • Direct field supply chain.
Service quality observations and
• Review current air and sea photography
ecosystems on indicators • Data obtained from
affecting Service Delivery various agencies and
such as Timeliness, Freight institutions.
cost, Tracking & Freight
capacity.
• Review of Fresh Produce Supply
Chain's resilience in terms of
reliability, flexibility, visibility,
efficiency, and sustainability.
• Challenges and opportunities
affecting fresh product supply
chains
• Analysis of data on fresh produce
movement.

This study has reviewed the data obtained from Kenya Airports Authority, KePHIS and HCDA in
order to examine the movement of fresh produce exports. However, the Unit of measurement used by
KAA, KePHIS and HCDA differ, and therefore, it is not possible to compare the data sets. Secondly,
Cut flowers are recorded in different forms by KePHIS depending on the presentation of the exporter.
Some of the cut flower data is captured in Kilograms, stems, bundles, packages, or mixed flowers.
Therefore, the study has used the number of shipments to assess movement of fresh produce from
Kenya.

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5 STUDY ASSUMPTIONS
The study is based on the following assumptions.
a) Fresh produce has been processed at the packhouse ready for transportation to the Airport or
Seaport for export.
b) The Exporter has already obtained the requisite permits/licenses as an authorized exporter.
c) The primary data as obtained from KAA, KEPHIS and HCD will inform the findings of the study.
d) The study has made every effort to corroborate the primary data findings with the already
documented findings from various sources.
e) HCD and KEPHIS have not adopted the harmonized system for the classification of products. The
study has therefore used the product type to count the number of products exported.
f) The number of shipments has been used as a unit of analysis in the study.

6 CHALLENGES FACED DURING THE STUDY

a) The COVID 19 pandemic made access to various stakeholders very difficult, which led to tele-
interviews.
b) The COVID 19 resulted in a lot of delays in obtaining findings from the study.
c) Lack of cooperation from the exporters in responding to questionnaire or telephone interviews.
d) Lack of willingness from various stakeholders in contributing to the study.

7 CATEGORIZATION OF EXPORTERS
Fresh produce exporters have been categorized into small, medium and large. This distinction is
necessary because the challenges faced by small, medium and large exporters are different. Large
exporters are vertically integrated as they have invested in advanced postharvest cold chain
infrastructure, including refrigerated trucks for transportation and third-party logistics to execute the
export operations of the fresh produce. It is also important to note that all third-party logistics
companies are responsible for transportation, cold chain management and freight forwarding services.
Large exporters have negotiated to have all the regulatory agencies in-house so that all the inspections
and customs clearance is done within their premises. However, on the other hand Medium and Small-
scale exporters have to call the regulatory agencies to the respective transit sheds to have their goods
inspected for customs clearance and issuance of phytosanitary certificates.

8 KEY ACTORS IN EXPORT LOGISTICS OF FRESH PRODUCE

8.1 KENYA AIRPORTS AUTHORITY

The Kenya Airports Authority (KAA) was established in 1991 under KAA Act, Chapter 395 of the
Laws of Kenya. The primary role of KAA is to administer, control and manage aerodromes; Provide
and maintain facilities necessary for efficient operations of aircrafts; Provide rescue and firefighting
equipment and services; Construct, operate and maintain aerodromes and other related activities;
Construct or maintain aerodromes on an agency basis on the request of any Government Department;
Provide such other amenities or facilities for passengers and other persons making use of the services
or facilities provided by the Authority and to approve the establishment of private airstrips and control

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of operations thereof. Currently KAA operations 4 international airports, five domestic airports and 8
airstrips. The main gateway connecting Kenya to the rest of the world is Jomo Kenyatta International
Airport and Moi International Airport.

8.2 KENYA PORTS AUTHORITY

Kenya Ports Authority is a state corporation responsible for maintaining, operating, improving and
regulating all scheduled seaports on the Indian Ocean coastline of Kenya, including principally
Kilindini Harbour at Mombasa. Other KPA ports include Lamu, Malindi, Kilifi, Mtwapa, Kiunga,
Shimoni, Funzi and Vanga. Mombasa port is one of the busiest Ports along the East African coastline
as it provides connectivity to over 80 Ports worldwide and is linked to a vast hinterland comprising
Uganda, Rwanda, Burundi, Eastern Democratic Republic of Congo, Northern Tanzania, Southern
Sudan, Somalia and Ethiopia by road. KPA plays a significant role in export of fresh produce through
facilitating movement of the reefers from the time they are delivered to their yard until they are loaded
to the ship.

8.3 KENYA MARITIME AUTHORITY.

Kenya Maritime Authority (KMA) is a semi-autonomous agency in charge of regulatory oversight
over the Kenyan maritime industry. All foreign Ships calling at the port of Mombasa, are inspected
by KMA ship surveyors in accordance with (IOMOU) Indian Ocean Memorandum of Understanding
on Port State Control to which Kenya is a member. This is to ensure that ships comply with safety of
life and safe manning regulations, protection of the marine environment regulations and load line
regulations, among others.
Currently, Kenya Maritime Authority is responsible for the operation of the Regional Maritime Rescue
Co-ordination Centre (RMRCC), now also known as the Mombasa Information Sharing Centre (ICS).
The Centre provides a communication center where seafarers can call in for help in cases of distress
while at sea, in a large area covering Tanzania, Seychelles and Somalia as well as receiving and
responding to piracy alerts and requests for information or assistance at all times. Kenya has joined
the IMO whitelist and seafarers training in Kenya are now recognized worldwide. By regulating and
overseeing orderly development of merchant shipping and related services, the Authority aims to make
a positive impact on trade facilitation in Kenya and in the promotion of maritime investments in the
country. KMA plays the role of weighing of all containers before they are loaded onto the ship.

8.4 KENYA CIVIL AVIATION AUTHORITY

Kenya Civil Aviation Authority (KCAA) was established on 24th October 2002 by the Civil Aviation
(Amendment) Act, 2002. The main functions of the Authority are Regulation and oversight of
Aviation Safety & Security; Economic regulation of Air Services and development of Civil Aviation;
Provision of Air Navigation Services, and Training of Aviation personnel. KCAA is a member of the
International Civil Aviation which provides standards and recommended practices on Civil Aviation
around the world. Kenya Civil Aviation has been able to build capacity of the Aviation Sector in
Kenya through the East Africa School of Aviation. The East African School of Aviation is one of the
International Civil Aviation Organization (ICAO) Regional Training Centre of Excellence (RTCE),
and it is one of the only 4 in Africa and 16 in the World.

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8.5 KENYA REVENUE AUTHORITY
KRA is the agency mandated through the Customs and Excise Act of Kenya to ensure imports and
exports of goods comply with the provisions of section 12 of the customs act. KRA is required to
provide Customs at the airport or seaport before goods are released for export.

8.6 HORTICULTURAL CROPS DIRECTORATE

The Horticultural Crops Directorate (HCD) is established under the Agriculture Act, (Cap. 318)
through the Horticultural Crops Development Authority Order, 1967 (Legal Notice No. 229/1967).
The mandate of HCD is to facilitate the development, promotion, coordination, and regulation of the
horticultural industry in Kenya. HCD issues the certificate of export in addition to various inspections
that they undertake before goods are cleared for export.

8.7 KENYA PLANT HEALTH INSPECTORATE SERVICES (KEPHIS)

The Kenya Plant Health Inspectorate Service (KEPHIS) is established by the Kenya Plant Health
Inspectorate Service Order, 1996 under the State Corporations Act (Cap 446). KEPHIS is the
designated competent authority responsible for regulating plant health issues relating to phytosanitary
and seed matters. KEPHIS issues the phytosanitary certificate for all fresh produce destined for export
after undertaking inspections.

8.8 KENYA NATIONAL CHAMBER OF COMMERCE & INDUSTRY (KNCCI)

Kenya National Chamber of Commerce and Industry (KNCCI) is the umbrella body of the private
sector in Kenya. The Chamber is an autonomous, non-profit, membership-based, and private sector
lobby institution. Membership to the Chamber is not mandatory. The KNCCI is mandated with a
Certificate of Origin (COO) issuance, be it ordinary or non-preferential to all exporters of goods
originating from Kenya. The COO is an international trade document that certifies that a specific
product being exported is wholly manufactured, produced, processed or obtained from the exporting
country. Kenya National Chamber of Commerce and Industry (KNCCI) issues the certificate of Origin
for all goods destined to various markets as per the signed trade treaties with the government of Kenya.

8.9 FRESH PRODUCE EXPORTERS ASSOCIATION OF KENYA (FPEAK)

Fresh Produce Exporters Association of Kenya (FPEAK) is a trade Association representing growers,
exporters and service providers in the horticulture industry. FPEAK is a registered legal entity and is
governed by an elected Board of Directors elected by members of the Association. The mission of the
association is to develop, unite and promote the Kenyan horticultural industry in the global market
with due regard to safety, good agricultural practices, social, ethical and environmental
responsibilities. The association has a secretariat that is responsible for providing services to the
members. The Association supports growers and exporters by providing technical and marketing
information and capacity building. The association is also an active information centre and are
engaged in active lobbying and advocacy programs to enhance the sector’s competitiveness. FPEAK
seeks to influence the enactment of a facilitative environment for the horticulture industry; Create
awareness in the horticulture industry on market requirements, changes, and regulations and undertake
continuous identification of market opportunities for its members.

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FPEAK has forged strong partnerships with various institutions in different sectors in order to ensure
that they are actively involved in issues that affect the horticulture industry.

8.10 KENYA FLOWER COUNCIL (KFC)

KFC is the leading Business Membership Association for growers, exporters, key cut-flowers, and
ornamentals value chain actors. KFC members account for approximately 80 percent of Kenya’s
floricultural exports. KFC’s Flowers and Ornamentals Sustainability Standards (FOSS), popularly
known as KFC Silver and Gold Standard, is a trusted standard worldwide to which all members must
comply. It is one of only three internationally benchmarked standards that demonstrate sustainable
social, environmental and good agricultural business practice benchmarks set by the EU based
Floriculture Sustainability Initiative (FSI). The standard encourages commitment to ethical practices,
innovation and promoting equitable trading practices, thus ensuring that certified producers foster
sustainable, responsible and safe production of cut flowers and ornamentals.
The organization is at the forefront of promoting Kenya as a reliable source of quality cut flowers and
ornamentals and the country’s competitiveness in the global floriculture trade. KFC is actively engaged
in all major trade negotiations in existing, new and emerging markets and amplifies Kenya's image in
the international market as the most trusted source of cut flowers and ornamentals. KFC engages with
key actors locally for a favourable business environment for growers and exporters of cut flowers and
ornamentals. Currently, Kenya is the third-largest producer of cut-flowers and ornamentals globally,
and Floriculture is the fastest-growing export sector in the Kenyan economy, providing direct
employment for over 250,000 workers.

8.11 AVOCADO SOCIETY OF KENYA

Avocado Society of Kenya is a registered association for growers, exporters, and other Avocado value-
chain players. The principal mandate of the Association is to promote the efficiency of production,
organize marketing, build capacity, and create an enabling environment towards the long-term
profitability of avocado agribusiness in Kenya. The Association assists growers to achieve high crop
production potential in both quality and quantity. The Association also undertakes advocacy programs
on Good Agricultural Practices, including helping farmers adopt global avocado farmer standards.

8.12 FRESH PRODUCE CONSORTIUM

Fresh Produce Consortium of Kenya (FPC Kenya) is a trade association committed to driving the
growth and success of fresh produce companies in Kenya and their partners. The FPC Kenya
comprises producers, traders and service providers for Kenya’s fresh horticultural produce. FPC
Kenya represents the interests of members throughout the fresh produce supply chain. With the
increased diversity of its membership and given the opportunities presented in Domestic, Regional and
Global markets, FPC is committed to promoting production and supply of high quality fresh
horticultural produce, shared prosperity of its members and protection of our environment.

8.13 AIRLINES/AIR FREIGHTERS

Airlines are the suppliers of air cargo capacity into and out of Kenya. They operation as either
scheduled operators, charter operators, freighter operators or integrated carriers. Scheduled operators
provide air cargo capacity principally in the belly holds of passenger aircraft, though some also operate

15
freight only. Freighter operators are freight only aircraft. There are also Integrated carriers who use
non-scheduled flights. Currently, JKIA has 40 passenger airlines and 25 cargo airlines.

8.14 MINISTRY OF TRANSPORT AND TRANSPORT AND INFRASTRUCTURE

The transport sector in Kenya consists of the following six (6) sub-sectors, namely Road transport,
Rail transport, Port and Maritime transport. Air transport, Pipeline transport and Inland water
transport. These sub-sectors have their specific contributions to the overall transport system in urban
and rural areas in Kenya. The transport sector is regulated by several bodies, all working under the
Ministry of Transport, Infrastructure, Housing & Urban Development (MOTIH&UD). Kenya has a
classified road network consisting of National trunk roads and County roads. The roads are managed
by respective institutions as stipulated by the Roads Act 2007. These institutions are responsible for
the planning, developing, and maintaining international classified roads, urban roads, rural roads, and
roads within the national parks and reserves. The 47 County Governments are responsible for all other
roads.

8.15 FREIGHT FORWARDERS

Freight forwarders provide services to shippers, including receiving consignments from Exporters,
arranging its routing, transportation handling, and documentation until they are delivered to the
importer. The role of the forwarders has evolved over the years, with the largest forwarders also
providing logistics services, including modern information and communication and supply chain
management.

8.16 TRANSIT SHED OPERATORS

Transit shed operators provide transit handling services to airlines and freight forwarders. Their
primary function is to receive cargo, carry out security screening in accordance with aviation security
requirements and prepare packages for shipment. Transit sheds in Kenya are gazetted by the
Commissioner of customs under the Kenya Revenue Authority.

8.17 KENTRADE
Kenya Trade Network Agency (KenTrade) is a State Corporation under the National Treasury
established in 2011 to, implement and manage the National Electronic Single Window System
(KenyaTradeNet System). Kenya TradeNet System is an online platform that serves as a single entry
point for international trade and transport logistics to lodge documents electronically, for processing,
approvals, and payments electronically for fees, levies, duties, and taxes due to the Government on
goods imported or exported in the country. Implement policies relating to the National Electronic
Single Window System (Kenya TradeNet System). The functions of KenTrade are to Integrate
electronic systems of public and private entities involved in receipting, processing and approving
documents relating to international trade transactions; Develop, manage, and promote interchange of
electronic data for facilitation of trade; Undertake and co-ordinate research and surveys in electronic
commerce aimed at simplifying and harmonizing trade documentation; Maintain an electronic
database of all imported and exported goods and services and the levies, fees, duties and taxes charged
on imported or exported goods and services; Collect trade statistics; Plan, develop, monitor and
evaluate training programmes for all stakeholders to ensure conformity with international best
practices; and Perform such other functions related to trade facilitation.

16
8.18 DEVELOPMENT PARTNERS
The Horticulture Sector has received support from various Development Partners to enhance the
performance of the sector. Among the achievements through support from partners in the development
of the Single Window Systems, creation of the Port charter, development of infrastructure at the port,
development of transport infrastructures such as ports, airports and roads, to name a few. Various
studies have been done through the support of partners that have helped inform policy at various levels,
enhancing the sector's performance.

8.19 KENYA NATIONAL ELECTRONIC SINGLE WINDOW SYSTEM

As of 2018, Kenya was among the 71 economies that have implemented the Single Window System
in line with Article 10 of the World Trade Organization Trade (WTO) Facilitation Agreement. The
Kenya National Electronic Single Window System Introduction of an Electronic Single Window
system is a crucial trade facilitation avenue geared towards reducing non-tariff trade barriers and
inefficiencies.

9 SCOPE OF THE LOGISTICS STUDY AND DEFINITION OF TERMS

The study seeks to assess the fresh produce Supply chain with respect to the exports to identify the
gaps and make recommendations on developing an efficient logistics system.
The assessment will focus mainly on transportation and flow of information required to facilitate
efficient export of fresh produce from the farm to the port of exit in Kenya. In order to clearly
understand the scope of the study, it is important to define the meaning of the supply chain and the
meaning of logistics. The Port Economics state that “transport costs (both freights costs and time
costs) constitute a key component of total trade costs.”1. Research has shown that lower trade costs
contribute to trade growth, as evidenced by a 10% reduction in transportation costs in developing
countries, resulting in 20% growth in international trade (UNCTAD, 2020). Transportation, therefore,
is a crucial factor in the fresh produce supply chain, and its efficiency is a crucial trade facilitator.
According to the Operations Manager of Panalpina Kenya, Mr Njonjo logistics costs accounts for
approximately 40 to 60% of total costs.
A Supply Chain is a series of activities required to deliver goods or services to the consumer, whereas
Supply chain management is defined as the coordination of production, inventory, location, and
transportation of products in a supply chain to achieve the best mix of responsiveness and efficiency
for the market being served. The value generated by the supply chain is calculated as the value of the
final product minus the total costs incurred by the supply chain and this determines the profit margins.
The council of Supply Chain Management Professionals (CSMP) defines logistics management as that
part of supply chain management that plans, implements, and controls the efficient, effective forward
and reverses flow and storage of goods, services, and related information between the point of origin
and the point of consumption to meet customers' requirements. According to the World Bank, logistics
includes “the movement of goods and services over time and space” (World Bank, 2012b).
Although the two terms (supply chain and logistics) have been used interchangeably in terms of
reference, it is important to highlight the difference in the meaning of the two terminologies. The
supply chain's focus is a competitive advantage, while logistics' primary focus is to ensure the right

1
https://porteconomicsmanagement.org/?page_id=147
17
customer gets the right product, at the right quantity, at the right quality, at the right place and at the
right time. Hence, Logistics is an activity within the supply chain that aims to transform business
processes for competitive advantage, whereas Logistics refers to the movement, storage, and flow of
goods, services, and information inside and outside the organization. Logistics management comprises
five major components: planning, packaging and utilization, inventory control, transportation and
information, and control.
Fresh produce supply chains involve the entire vertical chain of activities from the supply of input to
production, harvest and distribution, and finally, the end consumers. The fresh produce supply chain
involves fragmented tasks performed by various actors in the chain. Every actor in the chain is an
important and critical link in ensuring the safety and quality of fresh produce as it is processed through
the supply chain. It is the responsibility of all actors to ensure the safety and quality of fresh produce
is preserved from the packhouse to the consumer. Any weak links in the fresh produce supply chain
is detrimental to the fresh produce as it increases the risk of losing both the quality and competitiveness
of the produce. (FAO, 2009).

10 FACTORS THAT AFFECT THE COMPETITIVENESS OF A COUNTRIES EXPORTS

Kenya is among the countries that ratified the World Trade Organization, Trade Facilitation
Agreement (TFA) on 22nd February 2017. The agreement emphasises the need to ensure efficient
movement of goods across borders as a priority on the global trade agenda. The agreement
demonstrates the shift in focus from market access through negotiations to physical access through
efficient procedures and connectivity. OECD estimates that full implementation of the TFA is
expected to reduce total trade costs by 16.5% for low-income countries. (Moïsé and Sorescu, 2013)
The ability of businesses to connect successfully to international markets relies on the performance of
the entire supply chain. The World Bank performance index states that the Six areas that best capture
the most important aspects of a logistics environment are: a) Efficiency of the customs clearance
process; b) Quality of trade and transport-related infrastructure; c) Ease of arranging competitively
priced shipments; d) Competence and quality of logistics services; e) Ability to track and trace
consignments; f) Frequency with which shipments reach the consignee within the scheduled or
expected time.
The National Trade Policy for Export Success defines trade logistics as the “management of the
international flow of goods and related documentation and payments”. These services include services
provided behind the border, domestic transportation, port services, information management, security
management, infrastructure that enables exporters to comply with standards imposed by the importing
country. The policy further suggests that high-quality and price-competitive trade logistics services
strongly correlate with country competitiveness as lack of supply chain visibility and predictability
leads to additional costs for exporters since exporters must hedge against risks.
Just as supply chains rely on the efficiency of public sector institutions, Supply chain performance is
also highly dependent on the quality of services provided by the private sector, such as freight
forwarders, road transport operators, shipping agents, both air and sea. In many developing countries,
there is dissatisfaction with the quality of trade logistics services provided by both the private and
public sectors due to inadequate regulations and monopoly, resulting in a lack of choice and inadequate
coordination mechanisms.

18
11 WHY IS FRESH PRODUCE LOGISTICS IMPORTANT?
The Food and Agriculture Organization of the United Nations (FAO) has identified logistics as an
essential aspect that needs to be addressed to facilitate inclusive and efficient agricultural and food
systems. Fresh produce relies on efficient transportation to ensure the right product, in the right
quantity, in the right condition, at the right place, at the right time, to the right customer, at the right
price is achieved. This makes logistics a key enabler to the competitiveness and movement of Kenyan
fresh produce.
Logistics within the supply chain supports the physical movement of goods within and across borders.
The World Bank estimates that logistics is a $4.3 trillion industry, and its significance is demonstrated
by the World Bank release of bi-annual Logistics Performance Index (LPI), which aims to determine
challenges and opportunities by assessing the performance of countries on the efficiency of customs
and border management, transport-related infrastructure, ease of arranging international competitive
shipments, logistics competence, tracking and tracing and timeliness. Research from various studies
has shown that highly efficient logistics improve international trade, reduces product costs, and
increases profits.
In sub-Saharan Africa and South/South-East Asia, however, only 6% of food loss and waste occurs at
the household level, whereas 94% occurs because of inefficiencies in the supply chain, from harvesting
through distribution where transportation is critical. According to the World Economic Forum Report
of 2014, over 95% of investment in horticulture has gone towards funding towards pre-harvest
activities such as yield increases, while less than 5% has gone to postharvest improvements 2. The
investment in pre-harvest activities has contributed to advancements in production. Figure 3 shows
that food losses occur during postharvest, transportation and processing. It is important that equal
effort is directed towards ensuring that the increased production resulting from postharvest
improvements is made in transportation and handling of fresh produce.

Figure 3-FAO. 2019. The State of Food and Agriculture 2019. Moving forward on food loss and waste reduction.
Logistics and supply chain management are vital to Kenya’s fresh produce, as evidenced by studies in
other counties. For instance, the Bureau of Transport Economics of Australia indicates that the
performance of logistics in Australia has contributed positively to the economy as it influences
Australian produce's costs and revenues, resulting in a competitive advantage for its products. This

2
World Economic Forum: Enabling Trade: Farm to Fork 2014.
19
view aligns with the World Bank report on logistics, positing that logistics is the backbone of
international trade.
According to World Bank, 2010 efficient logistics performance is highly correlated with trade
expansion, export diversification and economic growth. The Annual State Logistics Survey further
corroborates this view for South Africa, whose findings indicate that the global competitiveness of
South Africa’s fresh produce is dependent on the performance of its logistics and supply chain
efficiency.
Kenya has a somewhat developed horticultural system, and there is an opportunity to position the
country in line with the growth in demand for food by changing the way food is produced and
distributed by adopting a modern approach to farming, processing, and distributing fresh produce.
Countries that excel in exports of fresh produce are investing in securing their supply chains by
developing strategies to strengthen the supply chains and improve supply chain transparency. This
can be achieved by developing an enabling environment for the fresh produce supply chain through
the creation of enabling policies and regulations, good infrastructure, availability of information,
access to financial services and efficient logistics systems.
The success of fresh produce exports depends on the supply chain's ability and, in particular, logistics
in responding to emerging requirements of speed, flexibility, precision, and transparency in the supply
chain to connect effectively and reliably to global supply chains. Appropriate logistics plays an
integral part in the overall export performance of a country. Fresh produce supply chains require the
development of logistics systems that take into consideration road and traffic conditions, climate,
transport time and distance, and delays at delivery points to strengthen the economic competitiveness
of stakeholders in the fresh produce supply chain, maintain quality or add value to fresh produce and
reduce the environmental impact of logistics (Condratchi, 2014).
Currently, studies on estimated costs of logistics in Kenya is not available. However, international
benchmarks indicate that logistics make up a large portion of costs, reduce profit margins, and reduce
the competitiveness of products. Logistics bottlenecks have been identified as a barrier to entry,
especially for small and medium-sized exporters to access markets. Fresh produce exports, especially
fruits and vegetables in Kenya, are characterized by production in remote zones with poor access,
leading to the deterioration of produce due to the time it takes to reach the markets.
The study will analyse critical activities in the fresh produce supply chain between the different actors
such as the exporters, logistics service providers, regulatory agencies, and infrastructure operations.
Regulatory services include customs inspections, Sanitary and phytosanitary inspections, security and
safety services, and other legal requirements applicable to fresh produce movement. The study also
takes cognizance of supporting institutions such as the Associations within the fresh produce supply
chain, whose role is mainly to advocate for an improved fresh produce ecosystem. The objective is to
identify areas where logistics inefficiencies increase logistics costs, travel time, uncertainty, and
produce quality. World Bank studies on agricultural supply chains in Central America suggest that
logistics bottlenecks negatively impact producer/exporter margins in exports and consumer prices, in
the case of imports, ultimately hindering competitiveness.

20
12 LOGISTICS PERFORMANCE FOR KENYA AND COUNTRIES WITHIN THE REGION
The Logistics Performance Index (LPI) scores depict how countries efficiently move goods across and
within borders. Caroline Freund3, Director, Macroeconomics, Trade & Investment Global Practice at
the World Bank Group, reiterated that “Logistics are the backbone of global trade, and as supply chains
become more globally dispersed, the quality of a country’s logistics services can determine whether
or not it can participate in the global economy.”
The World Bank Logistics performance (LPI) is the weighted average of the country scores on the six
key dimensions4:
a) The efficiency of the clearance process (i.e., speed, simplicity and predictability of formalities) by
border control agencies, including customs;
b) Quality of trade and transport-related infrastructure (e.g., ports, railroads, roads, information
technology);
c) Ease of arranging competitively priced shipments;
d) Competence and quality of logistics services (e.g., transport operators, customs brokers);
e) Ability to track and trace consignments;
f) Timeliness of shipments in reaching the destination within the scheduled or expected delivery time.
According to the World Logistics Performance Report of 2018, logistics performance correlates with
supply chain reliability and predictability. In 2016 Kenya was the top performer in the region, but its
performance declined in 2018. The report further states that importers and exporters now require
assurance on when and how the delivery of their goods will be executed. More than ever, the supply
chain's reliability has received more prominence, and shippers are willing to pay a premium.

Average

Figure 4-Performance Logistics Index Kenya

It is important that attention is given on the declining elements of logistics. Research from the World
Bank Logistics Performance has shown that logistics is key to “economic growth and
competitiveness”. Countries with inefficient logistics raise the cost of doing business and reduce the

3
https://www.worldbank.org/en/news/feature/2018/07/24/from-parts-to-products-why-trade-logistics-matter
4
https://lpi.worldbank.org/international/scorecard/line/2/C/AUS/2018

21
potential for integration with global value chains. Figure 5 below shows the logistics performance
within the region. In Africa, South Africa has the highest score of 3.8, ranking 33 globally. Rwanda
and Tanzania have the highest score of 2.97 within the region, whereas Ethiopia has the lowest score.

13 LOGISTICS PERFORMANCE WITHIN THE REGION

Figure 5-World Bank Logistics Index EAC Region from 2012 - 2018

14 DOCUMENTS/PERMITS/LICENCES REQUIRED FOR EXPORTS

Phytosanitary Certificate: A phytosanitary certificate certifies that plant and plant products are free
from regulated pests and conform with other importing country's phytosanitary requirements. Issuance
of the phytosanitary certificate is regulated by Kenya Plant Health Inspectorate Service (KEPHIS).
Export Certificate: An export certificate is issued by AFA Horticultural Crops Directorate (HCD) to
an exporter of horticultural produce (fresh fruits, vegetables, plants, and flowers) as an indication that
AFA HCD has cleared the consignment for export.
Certificate of Origin: A certificate of origin is a document that confirms that the goods in a particular
export consignment have been produced, manufactured, or processed in a particular Kenya.
Certificates of origin are categorized into; preferential or non - preferential and are issued per
consignment. Preferential certificates of origin are issued by the Kenya Revenue Authority (KRA) for
exports where trade agreements have been entered into with Kenya and other regions such as East
African Community (EAC), Common Market for Eastern and Southern Africa (COMESA), European
Union (EU), African Growth & Opportunity Act (AGOA) or Generalised System of Preferences
(GSP). Non - preferential certificate of origin is issued by the Kenya National Chamber of Commerce
and Industry (KNCCI) that confirms the country of origin for goods being exported.
Export Health Certificate: An export health certificate is required to export all commodities for
human consumption. Issuance of the certificate is regulated by Port Health Services and is required for
each consignment for export.
Customs Release Report/Clearance: A document issued by Kenya Revenue Authority indicating
Customs releases of goods under its control to be placed at the disposal of the party concerned for
export (also called a Customs delivery note)

22
Unique Consignment Document: A document that contains details of the Exporter, importer and the
Consignment.
Airway Bill: A document prepared by or on behalf of a shipper that signifies the contract between the
shipper and aircraft operator(s) for the carriage of goods over routes of the operator(s). The Airway
bill is issued directly by the airline or through a freight forwarder.
Invoice: This is a document required by Customs in an importing State in which an exporter states
the invoice or other price (e.g. selling price or price of identical goods), and specifies costs for freight,
insurance, and packing, as well as terms of delivery and payment, for the purpose of determining the
Customs value of goods in the importing State
Packing List: This is a document specifying which goods are in each package.

15 REVIEW OF RAIL TRANSPORT

Kenya has a rail network of over 3,200km, consisting of the metre-gauge and the Standard Gauge
lines. The network comprises 2,778 km of metre-gauge line comprising 1,083 km of mainline, 346
km of principal lines, 490 km of minor and branch lines, and 859 km of private lines sidings. The
mainline connecting the Port of Mombasa on the Indian Ocean to Malaba on the Kenya-Uganda border,
forms a key plank of the Northern Corridor with connections to Nairobi, Nakuru, Eldoret and Malaba.
There are several branch lines, in various states of operation, including to Magadi, Taveta (Tanzania
border), Nanyuki, Kitale, Butere, Nyahururu and Solai, as well as a branch extending to Kisumu on
Lake Victoria, to link to the Port of Kisumu. Magadi Railways (MR) operate the line between Konza
and Magadi (146 km) on behalf of the Magadi Soda Company Ltd.
The Vision 2030 strategy indicates that the railway capacity will be increased to handle 50 per cent of
freight cargo (25 Million Tonnes) from the Mombasa Port. This will be achieved by developing the
standard gauge railway line between Mombasa through Nairobi to Malaba with connectivity to
Kisumu, Uganda and Rwanda. For over a decade, the rail network has not received much attention
compared to other modes of transport and has continued to deteriorate over time.
Currently, Freight services are operated on all active lines, while passenger services are only offered
on the Mombasa-Nairobi Standard Gaige railway (SGR) line and meter gauge railway within Nairobi
Metropolitan. There is no fresh produce being transported by rail because the rail system does not
have facilities to support the fresh produce cold chain. Reefer containers require generators for
cooling, which the current meter gauge or standard gauge does not support.

16 MODAL TRANSPORT SHARE OF FRESH PRODUCE

Analysis of data from 2016 to 2021 shows that 99.7% of the fresh produce is shipped by air. The
number of shipments by air was more than 2 million whereas shipments by sea were a mere 568.
Shipment by road to the neighbouring countries recorded for the period are only 62.

23
Table 1-Transport Modal Share

Transport Mode No. of Shipments 2017-2020

Air 2,063,912
Sea 568
Land 62
Rail 0

17 REVIEW OF THE CURRENT ECOSYSTEM OF ROAD TRANSPORT FREIGHT SECTOR

Road Transport plays a critical role in moving fresh produce from the packhouse to the port of exit.
According to the Road Conditions and Inventory Survey of 2018 prepared by the Kenya Roads Board,
Kenya has a classified road network of 246,042 km, of which 160,933 km is classified, and 85,109 km
is unclassified. Of the classified road network, 16,990km is paved, and 143,943 is unpaved. The Road
Sector Investment Plan guides the development and maintenance of the road network, and the
financing is drawn from the fuel levy. The road conditions and inventory survey of 2018 indicate that
58% of the country's road network is good and fair, whereas 41% is poor. The rural accessibility index
for Kenya stands at 63%, which means that 63% of the population are within 2 km of an all-weather
road.
The Northern Corridor is the key corridor to the port of Mombasa and is a critical corridor for fresh
produce transportation by Sea. The corridor links the region to the global transport network via the
seaport of Mombas. The road network plays a critical role in moving fresh produce from the farms to
the airports and seaports. The movement of produce is executed through various means such as trucks,
pickups and refrigerated trucks. The movement of fresh produce from the farm is not regulated and is
done privately by the exporter. Most of the produce is shipped within 24 hours after harvest and
therefore, the efficiency of the road network is critical.
The current road network in Kenya is as shown in table 2. The country has road network of 246,042
km, out of which 17,730 is paved, translating to 8% of the paved network.
Table 2-road classification network

24
17.1 REVIEW OF ROAD TRANSPORT EFFECTIVENESS ON MOVEMENT OF FRESH PRODUCE
The road condition survey undertaken in 2018 provides an overview of the road network condition in
Kenya. As shown in table 3, 16% of the network is in good condition, 42% in fair and 41% in poor
condition. One of the key considerations for fresh produce exporters is located on areas within the
existing network to facilitate access to the ports.

Table 3-Road Condition Mix-KRB

17.2 RURAL ACCESS INDEX AS AT 2018 SURVEY

As shown on the Figure 6 the rural access index for all the 47 counties is highlighted. The counties
whose access index are below 60% continue to experience challenges in the transportation of fresh
produce from farm to market. The World Economic Forum report indicates that in Sub-Saharan Africa
approximately 6% of food loss and waste occurs at the household level whereas 94% 5 occurs as a result
of inefficiencies in the supply chain, from harvesting through distribution where transportation plays
a key role.
Fresh produce by road is not regulated, and there are no standards for ferrying fresh produce. The
large exporters have invested in refrigerated trucks that are used to transport fresh produce from the
packhouses to the port of exit. However, small exporters experience a myriad of challenges due to
lack of own transportation for their produce. Most of the small producers do not use refrigerated trucks
and sometimes, the goods arrive at the airport at unacceptable temperature.

5
World Economic Forum: Enabling Trade: From Farm to Fork 2014.
25
Figure 6-Rural Access Index

17.3 REVIEW OF CURRENT ROAD TRANSPORT TRENDS ON MOVEMENT OF FRESH PRODUCE

Currently, in Kenya movement of Fresh Produce is done by the respective Exports. The survey
findings indicate that each exporter makes own arrangements to transport the products to the airport.
Road Transport movement is currently not regulated. However, most of the exporters indicated that
they do not face any challenges at the weight bridges.
One of the products that is currently affecting by poor road access is French beans. Most of the French
beans are grown in remote areas. The respondents indicated that the about 70% of food loss happens
at the farms due to delays in collection of French beans whenever the roads are not accessible. The
process of moving fresh produce through the border is as shown on the process map below.

17.4 PROCESS MAP ON EXPORTING GOODS THROUGH THE OSBP

26
17.5 ANALYSIS OF FRESH PRODUCE EXPORTED BY ROAD.
Currently, all fresh produce being shipped by Sea or by Air are moved by road to the port of exit.
However, fresh produce is exported to neighbouring countries through the Lungalunga and Taveta One
Stop Border Post (OSBP). As shown on Figure 7 4639kgs were exported through Lungalunga whereas
124,000 kgs of produce were exported through Taveta Border Post between the years 2016 to 2020.

Q UANTITY (KGS) BY OSBP BETWEEN 2016 AND 2020

124000
4649

LUNGALUNGA TAVE TA

Figure 7-Quantity by OSBP between 2016-2020

The products exported through Taveta Border Post were mainly CoconutS, Mangoes and Tomatoes as
shown in Figure 8. Coconuts represent the most considerable quantity of product moving through
Taveta Border Post.

Figure 8-Sum of quantity by name of product via Taveta in 2020

The Lungalunga border processes more product variety than Taveta Border Post. As shown on Figure
9 there are seven products exported through this border post, with coconuts and mangoes being the

27
largest. However, the movement of coconuts has been declining since the year 2016 from 1.6 million
kg to 171,000 kgs in 2020. The reduction over the years is significant, and there is a need to find out
why. The movement of fresh produce through this border post has been inconsistent both in terms of
quantities and products.

E X PORT S T HR OU GH L U N GA L U N GA
2016 2017 2018 2019 2020
KILOGRAMS

Irish
Coconut Lemons Limes Mangoes Passion Fruit Red Onions
Potatoes
2016 1,653,000 32,000 647,000
2017 292,000 207,000 59,000 334,000
2018 116,000 255,000 2,000
2019 420,000 346,000
2020 171,000 4,000 108,000 4,000

Figure 9-Exports through LungaLunga

17.6 ANALYSIS OF BOTTLENECKS WITHIN THE FRESH PRODUCE SUPPLY CHAINS ON ROAD
TRANSPORT

A survey from various exporters indicates that they continue to experience challenges, especially when
transporting goods to the airport. However, it is worth noting that the large exporters seem to have
fewer challenges than the small exporters. The large exporters are vertically integrated and have
invested in efficient transportation systems. On the other hand, the small exporters rely on hiring
trucks which at times are unreliable, expensive and may not have all the requisite road worthiness
requirements, hence facing challenges with the police.
• Poor road network: This challenge mainly affects growers of vegetables and fruits, especially in
remote areas.
• Cost of Transportation – The respondents indicated that the cost of transportation from farm to
market is quite high, especially in areas where the roads are in poor condition. The respondents
indicated that sourcing of goods from those areas is cheaper however, one runs the risk of getting
stuck on muddy roads hence affecting timely delivery of goods.
• Congestion- Most of the fresh produce leave farms at 6 pm and by then the traffic has reduced and
most of the exporters indicated that they do not have major challenges. A discussion with the Farm
Manager of Bliss flowers indicated that for the last 10 years he has only experienced challenges
twice arising from road congestion.
• Weight bridge delays- all the properly designated trucks for fresh produce are not subjected to
weighbridge delays. However, due to congestion on major highways road weighbridges affect
traffic flows.
• Cess levies on fresh produce According to the Market Trusts study done on the impact of cess on
fresh produce, it increases the cost by 0.2%.
• Cost of using a refrigerated Truck- The respondents indicated that use of a refrigerated truck costs
more than double the cost of using a non-refrigerated truck.

28
18 AIRFREIGHT

18.1 OVERVIEW OF AIRFREIGHT IN KENYA

There are approximately 570 aerodromes in Kenya, nine (16) of which are managed directly by the
Kenya airports Authority (KAA). The rest are either airstrips under the Ministry responsible for
Transport or privately-owned airstrips. In 2019, total traffic through KAA managed airports was 12.23
million passengers, 316,698 aircraft movements, and 358,345,156 tons of cargo. Jomo Kenyatta
International Airport (JKIA) handled approximately two-thirds of the traffic or 8.3 million passengers,
31% of 116,300 aircraft movements, and 95.4% of cargo. Presently, JKIA has 40 passenger carriers
and 25 cargo airlines that connect Kenya to various destinations nationally, regionally, and globally,
thereby illustrating JKIA's importance as a regional hub for East Africa.
KAA has put in place several strategies that are expected to contribute towards the delivery of Vision
2030 and the competitiveness of the horticulture sector in Kenya. The strategies include Infrastructure
development, Business process automation, Public-private partnerships, Expansion of cargo facilities,
Aggressive marketing of airports and Customer service focus.
Jomo Kenyatta International Airports has a cargo capacity of 1.3 million tonnes with 40 passenger
airlines and 25 cargo airlines. The volume of cargo traffic by air increased by 5% percent from 341.6
thousand tonnes in 2018 to 358.3 thousand tonnes in 2019. Loaded cargo traffic increased by 8.0
percent, while landed cargo decreased by 7% percent from 75 thousand tonnes in 2018 to 70 thousand
tonnes in 2019. However, in 2019 and 2020, cargo traffic decreased by 6%, whereas landed cargo
increased by 11% due to an increase in the importation of COVID 19 supplies. The difference in the
volume of loaded cargo and landed cargo is a clear indicator of the imbalance between imports and
exports by air, making the route unattractive.
In September 2019, JKIA was ranked as the 2nd 'Fastest Growing Airports (Handling over 250,000
metric tons of air cargo)' by Airports Council International after handling over 358,3450 metric tons
of air cargo in 2018, posting a 25% growth. The Managing Director of Kenya Airports Authority
reiterated that the award attained demonstrated the ongoing efforts to improve facilities at the JKIA
Cargo area to position JKIA as premier cargo hub.
In the last few years, JKIA has witnessed the construction of several modern transit sheds, increasing
its annual overall cargo capacity to 1.2million tons. Due to the promising business model around cargo
at JKIA, several investors continue to invest in cargo facilities, and the latest one is Mitchell Cotts
which is constructing a new shed at JKIA that will increase JKIA capacity by 150,000 metric tons. On
the airline side Astral Aviation, a cargo airline operating from JKIA, has acquired three Boeing 747-
400 cargo aircraft to boost its freight capacity and expand its network.

18.2 REVIEW OF CURRENT AIR FREIGHT ECOSYSTEM

According to the International Air Transport Association (IATA) and Oxford Economics, the air
transport sector contributed an estimated 5.1 percent to Kenya GDP (2014), a gross value-added
contribution equivalent to US$3.2 billion. The aviation industry alone enabled direct employment of
18,000 jobs, supported another 130,000 jobs through local services and suppliers, and an additional
410,000 tourism-related jobs.

29
The aviation sector is vital for Kenya's economic development through the provision of air transport
services, facilitating tourism, and promoting trade and earning of foreign exchange. Historically the
model used by governments within the EAC region for financing infrastructure is one in which
governments provided aerodrome infrastructure while air navigation equipment and development of
resources have been done through support sourced externally. However, with the collapse of the former
community, each Member State established national institutions, including an airline, to manage its
own infrastructure.
The aviation sector in Kenya is guided by the integrated National transport policy approved by
Parliament and adopted by Government in 2012. The transport policy envisages "A world-class
integrated transport system that is responsive to the needs of people and industry". The policy's
objective is "To develop, operate and maintain an efficient, cost-effective, reliable, safe, secure and
integrated transport system and link transport policy with other sectors to achieve national and regional
development aspirations in a socially, economically and environmentally sustainable manner". The
policy only provides a broad vision for the aviation transport sub-sector in the country in line with
Vision 2030 with limited policy objectives. Thus, there is a need to develop an aviation policy that
lays clearly the principles that will underpin the development of a more efficient, competitive,
environmentally sound, secure, safe and economically and financially sustainable aviation sub-sector.
The transport infrastructure is a central element for Kenya to reach its Vision 2030 to transform the
country into a middle-income economy. According to World Bank studies, Kenya’s economic growth
will only accelerate if Kenya increases its quantity and quality of infrastructure. The vision to build
modern, high-quality and efficient transport infrastructure facilities that would facilitate access to
markets. In addition, better infrastructure is expected to boost horticultural exports.
Air Transport in Kenya is well developed with fairly good infrastructure. Kenya ranks among
countries with excellent aviation safety standards not only within the region but also globally.
Tremendous progress has been made, and this is demonstrated by the attainment of CAT 1 status
allowing direct flights from Kenya to the United States of America.
The key players in the sector include the following:
a) State Department of Transport under the Ministry of Transport, Infrastructure, Housing, Urban
Development and Public Works is responsible for the policy and legislative activities and air
accident investigation.
b) Kenya Civil Aviation Authority (KCAA), established under the Civil Aviation Act 2002
(Amended) responsible for regulation air navigation services and aviation training through the
East African School of Aviation.
c) Kenya Airports Authority (KAA) established under (Cap. 395), provides airport facilities,
infrastructure and services. KAA manages a network of 18 aerodromes majority of whom
other than Jomo Kenyatta International Airport (JKIA) with 80% percent of the business are
loss-making; and
d) Kenya Airways (KQ), formerly established under (Cap 486) provides domestic and
international air services alongside other airlines. KQ is listed at the Nairobi, Dar-es-Salaam
and Kampala Securities Exchange, with current GoK shareholding standing at 48.9%.

30
The developments in the aviation sector have enabled Kenya to provide various services within the
region, such as instructional flying, business flying, charter services, development of various policy
documents, training and aerial work.
In most respects, Kenya's civil aviation sector is well established and has provided the basis, over the
last 20 years, for the development of a vibrant fresh produce sector. The flower and horticulture sector
experience demonstrate that Kenya can take advantage of the opportunities available on the export of
fresh produce. If Kenya can successfully operate an international logistics chain that must ensure
delivery of flowers and fresh produce to global markets within 24 hours of harvesting, there is no
reason to suppose that other logistics chains cannot be managed.
Currently, the available aviation statistics cover relatively limited parameters like traffic flows,
aircrafts registered in the country and licensed aviation personnel. However, there is a need to develop
a central repository that covers a wide spectrum of information to ensure a timely decision-making
process and effective policy interventions. Further, there is a need to have a clear policy direction on
the development, financing, management, ownership, and governance to ensure quality development
of infrastructure that is responsive both to the aviation sector's present and future growth needs.
The joint paper by the International Civil Aviation Organization (ICAO) and the World Customs
Organization (WCO) Information Paper of May 2015 there are various benefits of Air cargo transport.
The paper suggests that air transport enables countries to connect to distant markets and global supply
chains quickly and efficiently regardless of their geographic location. Kenya is no exception to this
statement as air cargo has enabled Kenya to export its fresh to over 147 destinations in 2020. The Air
Transport Action Group holds the same view (ATAG), posit that the largest economic benefit of
increased air cargo connectivity lies in its impact on the long-term performance of the broader
economy. Air connectivity opens up new markets, boosts exports, and at the same time increases
competition and choice in the home market from foreign-based producers.
More recently, the Government of Kenya communicated the need to develop an aviation policy. The
policy is expected to address the main issues, constraints and challenges facing the aviation sector. It
is anticipated that aviation policy supports the sector to maximize its contribution to Kenya's economic
and social development, leading to an efficient, well-governed, safe, secure, competitive and
environmentally sound industry. The IATA Perishable Goods Regulations governs the transportation
of fresh produce by air.

18.3 REVIEW OF PAST, CURRENT AND PROJECTED TRENDS ON AIRFREIGHT MOVEMENT

In 2016 during the ICAO Air services negotiation conference (ICAN) in Nassau-Bahamas, Kenya
initialled ten (10) Bilateral Air Service Agreements and MOUs in Nassau-Bahamas with several
countries that included Greece and several Caribbean countries. In addition, the Kenyan Parliament
approved Liberia and Vietnam Air Service Agreements, paving the way for their ratification, which
will undoubtedly translate to increased market access.
In February 2017, the US Federal Aviation Authority (“FAA”) granted JKIA Category 1 status to
direct flights from Kenya to the USA. The attainment of Category 1 status continued to affirm Kenya’s
position as a regional hub. Direct flights from Nairobi to the USA launched in 2018 indicate that after
the launch, fresh produce shipments more than doubled from 3224 shipments in 2018 to 6730 in 2020.

31
Two notable events occurred in 2018. The first one was in January 2018, during the African Union
Heads of State and Governments, where the Single African Air Transport Market (SAATM) more
commonly referred to as the Open Skies Treaty was launched. This initiative is one of the flagship
projects of the African Union’s (AU) Agenda 2063. Kenya is among the 23 out 55 African states that
signed the Single African Air Transport Market (SAATM), a move that is expected to lower air
transport costs in the continent by 25 per cent. The open skies treaty signed at African Union Summit
in Addis Ababa, Ethiopia, is a step by African states to encourage liberalization of the air space.
According to the International Air Transport Association, an open-air policy in Africa will contribute
approximately $1.3 billion to the continent’s gross domestic product annually and create about 150,000
additional jobs. IATA predicts that Kenya will benefit from additional $76.9 million through open
skies initiative to the country’s GDP annually and Kenya Airways will benefit from route expansion
through improved connectivity and integration of African countries.
In 2018 Kenya hosted the International Civil Aviation Organization (ICAO) Air Service Negotiations
(ICAN). According to the Director General of Kenya Civil Aviation Authority, “Kenya plays a central
role in strengthening air transport connectivity while attracting huge interest geared to cementing
business and investment partnerships with these countries through aviation. It will enable the local
airlines to expand into new routes, grow their market reach, increase frequencies and capacity. Further
this will enhance connectivity, facilitate tourism, international trade, create jobs and generate economic
growth for Kenya,” said Capt. Kibe. During the 2018 conference, Kenya signed several Air Services
Agreements (ASA) with Cambodia, Bahamas, Jamaica, Turkey, Seychelles, Greece, Finland and
Burkina Faso. The agreements will expand route networks from Kenya through direct flight services.
In 2019 the African Continental Free Trade Agreement (AfCFTA) came into force following its launch
during the 12th Extraordinary Session of the Assembly of the African Union in Niamey, Niger. The
initiative is expected to boost air passenger and freight in Africa by unlocking markets. To date, 30
countries have signed and approved the ratification of the Agreement. Trading under the AfCFTA
Agreement was expected to commence on 1 July 2020 but was postponed due to the COVID-19 global
pandemic.
In 2019 Kenya Airways hosted IATA’s African Regional Aviation Forum, “Aviation Connecting
Enriching Africa”. Findings presented during the forumshow that the air transport market in Kenya is
projected to grow by 249% by 2037, resulting in an additional 11.8 million passenger journeys by
2037. The increased demand will support approximately US $11.3 billion of GDP and almost 859,000
jobs. The sustainability of growth in air transport must be supported with the proper soft and hard
infrastructure.
The National Aviation Sector Management Bill 2020 tabled in parliament is expected to attract reforms
in Kenya’s aviation sector by refocusing the investment efforts around the aviation sector. This
includes support to the National Carrier, revamping of Jomo Kenyatta international airport and training
of aviation personnel.
The recognition by IATA on the importance of fresh produce to the air cargo business has led to the
development of Center for Excellence for Perishable Logistics (CIEV) standards. The standard will
support standardisation across the cool chain to ensure products arrive at their destination in pristine
condition. The Standard will enable airports to improve the handling of fresh produce. Hong Kong
airport is the Worlds first airport to be CEIV certified. The airport has now developed procedures for
seamless transport of perishables, including cool dollies for ramp transport and temperature-controlled
32
storage to prevent food loss. Singapore Airlines (SIA) cargo division has also been awarded the IATA
CEIV Fresh certification following the launch of its specialised service for the transportation of time-
and temperature-sensitive perishable cargos-ThruFresh.

18.4 FACTORS AFFECTING AIRFREIGHT TRENDS

18.4.1 Air Transport Connectivity - Kenya

Air connectivity can be viewed from different perspectives: the passenger perspective, cargo
perspective, or airport perspective. The passenger's perspective on air connectivity represents the
ability to seamlessly travel by air from origin to destination in the shortest possible time. From the
cargo, perspective, exporters are interested in finding the most efficient routes to get freight delivered
quickly and efficiently from origin to destination. From an airport's perspective air connectivity is
about air linkages as it determines the number and economic importance of the destinations served
from a country's major airports, the frequency of service to each destination and the number of onward
connections available from each destination. According to ICAO, connectivity can be optimized
through strong supporting framework, including market access and liberalization, optimal use of air
navigation services, aircraft and airport systems, enhanced facilitation, and security procedures. The
full benefits of air connectivity can only be realized through the development of intermodal
connections and efficient airline 6.
Secondly, Air connectivity is an essential facilitator of international trade as shown on Figure 10.
Research by IATA indicates that approximately 35% of global trade by value is moved by air.
Countries with better connectivity tend to trade more. According to the IATA findings, a 1% increase
in air cargo connectivity results in 6% more trade. Therefore, policies that promote the improvement
in air cargo connectivity and efficiency of cargo movement is highly correlated with improvement in
a country’s trade competitiveness on a global level. (IATA, 2020).

Figure 10-IATA Economics Briefing No.8: Aviation Economic Benefits.

Consequently, a country's air transport connectivity is a key driver of economic development and
growth as it connects the country to the global economy. The IATA Connectivity Report of 202shows
that connectivity increases as the range of destinations increases, whereas service frequency increases
where "hub" airport destinations are served. According to the IATA, Egypt was the most connected

6
Moving Cargo Globally, ICAO (Second Edition)
33
country in Africa in 2019. On the other hand, Kenya ranked 7th as the most connected country
internationally within the Africa Region and recorded a 23% growth between 2014 to 2019.

Figure 11-Top 20 most internationally connected countries in Africa in 2019 and air connectivity growth (2019 vs.2014)

18.4.2 Air Transport Competitiveness in Kenya

IATA has identified five key elements that determine the ease of doing business that influence a
country's air transport competitiveness. The five elements which form the IATA Air Transport
Regulatory Competitiveness Indicators are Passenger Facilitation, Cargo Facilitation, Supply Chain
Competitiveness, Infrastructure and smarter Regulations. According to IATA, these aspects enhance
international trade, reduce costs, and increase the competitiveness of goods and services. The 2017
Air Trade Facilitation Index (ATFI), which measures the extent to which a country facilitates air cargo,
ranked Kenya at position 69 out of 124 countries on customs, border processes and regulations;
position 77 out of 136 on E-Freight Friendliness Index and enabling trade facilitation on the free flow
of goods over borders and to its destination. The E-Freight index measures the actual penetration of
electronic transactions and documents in air cargo shipments. The ranking shows that Kenya as a
country requires to continue its quest to improve trade air trade facilitation by addressing the
bottlenecks affecting the movement of goods by air.
The demand for air freight is affected by cost, typically priced 4–5 times that of road transport and 12–
16 times that of sea transport. Airfreight rates generally range from $1.50–$4.50 per kilogram from
Kenya to Europe. Thus, commodities shipped by air have high values per unit or are very time-
sensitive, such as perishable vegetables, fruits and flowers.

18.4.3 Air Cargo Infrastructure

The Cargo infrastructure at JKIA has continued to expand to accommodate the growth in horticultural
exports. JKIA has a specialized freight area that is dedicated to freight. The freight area has fourteen
(14) Pack Houses with pre-cooling and processing facilities for cut flowers, fruits, and other fresh
produce. Some of the freight areas have airside access, whereas others are on the land side.
Currently, the Cargo Apron at Jomo Kenyatta International Airport is designed to accommodate 8
wide-bodied aircrafts at any one time and five transit sheds. The transit sheds are equipped with state-
of-the-art cold rooms. Currently, JKIA has a capacity of approximately 1,000,000 tons of cargo
annually.

34
18.5 ANALYSIS OF MAJOR CARRIERS, NEW CALLINGS AND FACTORS AFFECTING NEW CALLINGS.

18.5.1 Scheduled Carriers

There are several airlines and cargo carriers that are currently operating from JKIA. Currently, the
movement of fresh produce is through belly freight capacity and dedicated cargo carriers. The major
airlines undertaking movement of fresh produce are as shown on Table 4. The carriers as listed have
licenses for different routes depending on their request. KCAA also allows for variation of licenses
on a need basis for the airline.
Table 4-Scheduled major carriers-Source KAA.

CARGO AIRLINES
Kenya Airways Cargo Martin Air
Air France/KLM Saudia Airlines
Lufthansa Cargo Etihad Crystal Cargo
Emirates Sky cargo Egypt Air
Cargolux Singapore Airlines
Ethiopian airlines Qatar Airlines
Turkish Cargo Swiss World Cargo
MK Airline Astral Aviation
BELLY CARRIERS
Kenya Airways
British Airways
South African Airways
Air Rwanda
Emirates

18.5.2 Non-scheduled Carriers

Several non-scheduled air freight carriers have been licenced by Kenya Civil Aviation Authority as
evidenced by the Gazzette notices. For example, the gazette notice of 27th March 2020 pg 1465 has
licensed Air France, Northern Air Limited, and Aerospace limited, to list a few.

18.6 NEW CALLINGS

Kenya continues to receive new callings for air service licences. Analysis of the applications received
by Kenya Civil Aviation published in the Kenya Gazette indicates that several airlines have applied to
operate on a non-scheduled basis. For example, in November 2020, ALS Limited, Allied Air Limited,
Aim International, applied for air service licenses as published in the Kenya Gazette of 13th November
2020 pg 4497. It is also worth noting that existing carriers apply for a variation of their existing
licenses to fly to new routes, thereby opening up new markets.

35
18.7 FACTORS AFFECTING NEWS CALLINGS (AWAITING DATA FROM KCAA)
Trade Imbalance: New callings to and from JKIA are affected by the low volumes of inbound cargo.
As shown on
Figure 12 there is a huge imbalance between loaded and landed cargo. A survey with the Airlines
indicated that if an airline is not granted enough freedoms, they cannot consolidate enough cargo.
Air Operator Application process: A review of the application as an air operator does not indicate any
timelines and therefore, this is a challenge as it is not known how long the process will take.
Refusal of license affects new callings: In December 2019, Kenya Civil Aviation declined to approve
variation of license for Saudi Arabia Airlines routes to fly Jeddah-Nairobi-Maastricht and Jeddah-
Nairobi-Liege and Ethiopian Airlines request to vary aircraft type to B737F. The gazette does not
provide any explanations for the decline. However, an interview with the airlines suggested that a
decline can arise when there is need to protect the home carrier or when the state from the which the
airline belongs does not reciprocate with similar freedoms.

18.8 REVIEW OF PAST AND CURRENT TRENDS OF TOTAL AIR CARGO MOVEMENT
As shown on
Figure 12 loaded cargo out JKIA has increased over the last five years by 30%. However, the unloaded
cargo is only 30% of the loaded cargo. This indicates that there isn’t sufficient cargo to Nairobi,
making the route unprofitable for freight-only carriers.

JKIA Loaded Cargo vs. Unloaded Cargo (kgs)

2017 2018 2018 2019 2020

Total Unloaded 33,164,028 49,877,875 75,188,279 70,250,365 77,817,027
Total Loaded 198,634,231 223,745,227 266,480,424 288,094,791 257,376,238

Total Unloaded Total Loaded

Figure 12-JKIA loaded vs landed cargo-Source KAA

18.9 FRESH PRODUCE AS A PERCENTAGE OF TOTAL CARGO LOADED.

Fresh produce continues to dominate the loaded cargo at JKIA. This is an indication that fresh produce
is a lifeline to the cargo business at JKIA. Figure 13 shows that fresh produce represents over 60% of
cargo loaded from JKIA to various destinations. Therefore, fresh produce exports is a significant
revenue earner for JKIA.

36
Figure 13-Fresh Produce as a percental of Freight Loaded.

18.10 DISAGGREGATED MOVEMENT OF FRESH PRODUCE BETWEEN 2016 - 2020

As shown in Figure 14, the volume of fresh produce from JKIA has been upward from 2016 to 2020.
Fresh fruits and vegetables have increased by 32% from 62,208,774 kgs in 2016 to 82,002,250 kgs in
2020. On the other hand, flowers have increased by 41%, from 83,377,383 kgs to 117,777,232 kgs.
The increase in fresh produce movement can be attributed to the improvements made in air cargo
facilitation. The findings of this study support the fact that indeed air cargo leads to improved access
to market and an increase in trade.

Figure 14-Movement of Fruits, Vegetables and Flowers- Source KAA

37
18.11 AIR FREIGHT SHIPMENT PROCESS MAP
Shipping by Air involves about 52 steps that must be fulfilled before the shipment can be is ready for
loading to the aircraft. The process is as shown on Figure 15

Figure 15-Air cargo shipment process map

To guarantee quality of fresh produce, it is important to have visibility of the entire supply chain.
Exporting fresh produce from Kenya to the rest of the world is a complex chain that requires well-
designed packhouses, good infrastructure and well-ventilated transportation facilities, and efficient
logistics. It is important to ensure that the integrity of the cold chain is maintained for quality fresh
produce. Distance to the port of export is a critical consideration given that fresh produce begins to
deteriorate after harvest, and each minute of delay may result in food loss in the fresh produce logistics
chain.
According to the Logistics Bureau Rob O’Byrne (2016). “The key to achieving fresh supply chain
excellence include end-to-end collaboration, technology to improve temperature control and product
traceability, packaging to protect produce and reduce handling, supply chain velocity and
responsiveness, commitment to staff training, and where it makes sense, the development of strong
partnerships with specialist cold chain logistics providers.”

18.12 ANALYSIS OF FRESH PRODUCE MOVEMENT BY AIR FROM 2017 – 2020

The movement of fresh produce has shown an upward trend since 2017, with an increase in many
products, destinations, and shipments as shown in Figure 16. The number of products increased by
64% between 2017 and 2020 whereas the number of destinations increased by 18% from 125
destinations in 2017 to 147 destinations in 2020. This is evidenced by the increase in shipments by
66% between 2017 and 2020.

38
Figure 16-Performance of Fresh produce movement by air from 2017-2020-KEPHIS

18.13 ANALYSIS OF FRESH PRODUCE DESTINATIONS

Figure 17 shows the top 20 destinations for Kenyan fresh produce between the years 2017 to 2020. As
shown on the table, several destinations continue to show an increase in fresh produce from Kenya.
Notably, the Netherlands, United Arab Emirates, Switzerland, Germany, Norway, France and Russia
have recorded significant growth, which has more than doubled from 2017 to 2020. Kuwait, whose
main product is cut flowers, has grown by 81.5% from 2017, with 1852 shipments to 9988 shipments
in 2020. In 2017 Saudi Arabia was the second-largest destination for fresh produce, having recorded
63878 shipments. However, in 2018 Saudi Arabia registered a 68% decrease but has bounced back in
2019 and 2020.
Australia recorded a significant decline of 63 and 53 % in 2018 and 2019 compared to 2017. However,
in 2020 Australia as a destination bounced back, and shipments to Australia increased significantly to
2017. Notably, in position 15 in 2017, Latvia seems to have shown a continuous decline in shipments
from Kenya and has dropped from the top 20 list. The same scenario is evident for Singapore, which
has recorded decreased shipments over time from 2017 to 2020. Singapore as a destination was in the
top 20 in 2018 and has continued to drop and is now in position 26 as at 2020. The decrease can be
attributed to the reduction in Singapore Airline's reduction of frequencies to Kenya which is now at
two times per month. China, Japan, Hong Kong and South Africa recorded a decline in shipments in
2020 compared to previous years and this can be attributed to the impact of COVID 19.
Netherlands is the top destination for Kenya’s fresh produce with a total 160,314 shipments in 2020.
The Netherlands is the main European trade hub for flowers, fruit and vegetables from developing
countries. Dutch import value from non-European countries increased by 49% from 2015 to 2019 and
56% from developing countries. In 2019, over 24% of the fresh fruit and vegetables entered Europe
through the Netherlands where they are further distributed through the port of Rotterdam to the rest of
Europe.

39
Figure 17-Top 20 Destinations

Country 2017 2018 2019 2020 TREND

Netherlands 89,321 127,101 144,815 160,314
Saudi Arabia 63,878 25,048 32,386 39,043
United Kingdom 46,772 58,592 69,626 107,730
Russia 30,135 33,847 36,833 40,756
United Arab Emirates 24,163 39,199 53,448 64,034
Norway 17,113 21,069 23,486 26,386
Germany 16,086 22,323 22,678 32,517
Australia 10,867 4,074 4,681 8,815
Switzerland 7,965 12,587 15,975 17,429
China 7,636 11,024 12,291 6,962
Sweden 6,784 7,282 7,328 9,100
Japan 5,432 7,200 7,993 7,269
France 5,166 8,467 11,868 13,929
Italy 5,011 7,753 8,546 8,446
Latvia 4,783 2062 478 313
Hong Kong 3,834 4,778 4,187 3463
Qatar 3,825 7,055 8,757 11,423
South Africa 3,767 5,902 9,010 6,923
Oman 2,768 4,760 6,388 8,623
United States America 2,466 3224 3,745 6,730
Kuwait 1,928 3697 6,616 9,988
Bahrain 1,852 2,991 4,681 6,753

18.14 DESTINATIONS THAT HAVE EXITED FROM 2017 AND 2020

An analysis of the shipments from 2017 to 2020 shows that there are destinations that have been noted
that have not had repeat shipments. As shown on Table 5 there are 17 destinations have since dropped
between the period 2017 to 2019.
Table 5-Destinations that have exited from 2017 - 2020
Destinations that only shipped in 2017.
BRAZIL Macadamia (Processed) 2.5 kgs 1
KIRIBATI Rose 864 Stems 2
PITCAIRN Avocado 24192 Kgs 1
Destinations that only shipped in 2018
BELIZE Alstroemeria 1920 Stems 1
CAMBODIA Alstroemeria 7424.34 Stems 23
MONTSERRAT Hypericum 576 Stems 1
SAO TOME AND PRINCIPE Rose 3000 Stems 3
SYRIAN ARAB REPUBLIC Rose 100 Stems 1
TIMOR LESTE Rose 26 Stems 1

40
 TRINIDAD AND TOBAGO Rose 460 Stems 1
WESTERN SAHARA Baby corn 463.05 Kgs 1
Destinations that only shipped 2019
COMOROS Mixed Fruits 330 Kgs 1
Mixed Vegetables 330 Kgs 1
ERITREA Sweet Potatoes 4 Cuttings 2
GIBRALTAR Hydrangea 35 Stems 1
GUADELOUPE Rose 10 Stems 1
PARAGUAY Stevia 112 Unrooted 1
Cuttings
SAINT HELENA Rose 810 Stems 1

18.15 NEW DESTINATIONS

Table 6 shows new destinations shipping for the first time based on the 2017 to 2020 data. Before
2020 there were no shipments to these destinations.
Table 6-New Destinations
Destinations that only shipped 2020
ARGENTINA Macadamia nutshells 12 kgs 1
10 Stems 2
Rose(budwood) 10 Kgs 1
BRUNEI DARUSSALAM Avocado 23040 Kgs 5
FALKLAND ISLANDS Jasmine 56 Stems 1
Lavender 56 Stems 1
Mint 56 kgs 1
Rose 56 Stems 1
Rosemary 56 Stems 1
FRENCH GUIANA Basil 332 kgs 1
GUAM Rose 24 bundles 1
HAITI Rose 15 bundles 1
LAO PEOPLE'S DEMOCRATIC Kidney Beans 840000 kgs 2
REPUBLIC
LESOTHO Coriander 10 kgs 1
PANAMA Rose 3341 stems 57
UZBEKISTAN Carnation 112 Rooted Cuttings 1

41
18.16 ANALYSIS OF TOP 20 PRODUCTS BASED ON NUMBER OF SHIPMENTS
As shown on Table 8, Roses are the top fresh produce product from Kenya. Overall, the top three
products are flowers. The topmost shipped vegetable is the French beans, whereas the topmost
exported fruit is the avocadoes. Among the top 20, only five are vegetables, two are fruits, and the
rest are flowers. In 2019 Rosemary entered the top 20 list. In 2020 four products joined the top twenty.
These were two vegetables, namely tender stems and baby corn and two flowers.
Table 7-Top 20 products
2017 2018 2019 2020
PRODUCT NO OF PRODUCT NO OF PRODUCT NO OF PRODUCT NO OF
SHIPMEN SHIPMEN SHIPMEN SHIPMEN
TS TS TS TS

Rose 263,962 Rose 267,695 Rose 284,968 Rose 297,541

Alstroemeria 13056 Alstroemeria 18093 Alstroemeria 22094 Gypsophila 24747
paniculata
Gypsophila 10353 Gypsophila 17171 Gypsophila 21103 Alstroemeria 24367
paniculata paniculata paniculata
French beans 8671 French beans 12323 French beans 15475 French beans 22732
Carnation 6795 Hypericum 9895 Hypericum 13659 Hypericum 15115
Hypericum 5624 Carnation 8922 Carnation 10929 Carnation 14121
Hydrangea 4409 Hydrangea 6864 Avocado 8525 Chrysanthemu 10824
m
Avocado 3406 Avocado 5833 Chrysanthemu 8396 Limonium 10797
m
Statice 3168 Chrysanthemu 4947 Limonium 7775 Avocado 9666
m
Sugar snaps 2867 Limonium 4253 Hydrangea 7633 Delphinium 7186
Snow peas 2822 Lily 3974 Delphinium 6343 Sugar snaps 6838
Mango 2414 Delphinium 3651 Snow peas 5900 Hydrangea 6789
Chrysanthemu 2300 Calla lilies 3642 Sugar snaps 5352 Snow peas 6730
m
Delphinium 2260 Snow peas 3626 Lily 4588 Mixed 6053
Vegetables
Lily 2256 Mixed 3399 Ruscus 4402 Basil 5940
Vegetables
Calla lilies 2090 Statice 3282 Basil 4186 Solidago 5893
Solidago 2035 Herbaceous 3129 Mango 4018 Tender stem* 5650
planting
plants
Mixed 2029 Sugar snaps 3125 Rosemary* 3615 Baby corn* 5617
Vegetables

42
 Limonium 1760 Solidago 3103 Mixed 3573 Eryngium* 5345
Vegetables
Ruscus 1720 Ruscus 2926 Herbaceous 3534 Lepidium 4923
planting ruderale*
plants
Grand Total 343997 Grand Total 389853 Grand Total 446068 Grand Total 496874

Table 8-performance of top 20 products

18.17 PERFORMANCE OF TOP 20 PRODUCTS BY VOLUME

As shown in Table 7, there has been continuous growth and have more than doubled in volume from
2016 to 2020. A good example is Avocado, Pineapple and Basil, which have doubled in volume.
However, some products exhibit a decline in volume, such as carnations that have reduced in volume
from 2018 to 2020.
Table 9-Performance of top 20 products moved by air
PRODUCT 2016 2017 2018 2019 2020
Roses 114,285,596 132,767,950 129,688,504 138,208,040 107,266,909
Avocado 38,701,698 46,647,630 64,477,082 59,331,039 71,758,741
MixedVegetables 29,533,334 30,545,851 31,010,079 35,710,305 33,371,129
Pineapple 27,288 202,485 494,759 12,298,432 24,030,246
MixedFlowers 5,487,176 9,846,092 14,167,462 17,267,381 20,378,122
FineBeans 20,100,179 20,208,846 22,098,505 18,416,901 14,379,474
Mango 9,020,933 9,306,896 9,659,925 9,446,610 6,624,928
Herbs 1,133,189 1,727,001 2,525,736 3,728,248 3,197,401
Cuttings 1,362,282 3,113,738 2,634,326 3,092,155 2,640,548
SnowPeas 2,666,583 2,332,652 2,154,385 2,296,690 2,103,980
Hypericum 1,792,984 1,970,048 2,215,107 2,370,341 2,028,786
Alstroemeria 1,205,935 1,674,082 2,190,182 2,225,863 2,017,969
Chilies 902,672 1,388,462 1,056,623 1,286,413 1,931,225
Basil 214,552 445,408 987,924 1,716,753 1,784,447
OTHERS 1,859,052 1,509,661 1,688,722 1,760,540 1,678,855
Gypsophilla 1,624,830 2,265,958 2,423,889 2,398,205 1,617,378
Carnation 2,741,710 2,146,707 1,501,506 1,339,274 1,107,795
SnapPeas 1,088,506 898,328 687,190 859,517 1,004,643
Statice 1,015,230 719,525 897,240 957,523 929,574
Broccoli 467,548 672,025 574,602 855,081 913,800
Chrysanthemum 250,120 702,199 525,095 819,502 896,606

18.18 ANALYSIS ON THE MOVEMENT OF FRUITS

The exports of fruits in Kenya is still low compared to flowers and vegetables, as shown in Figure 18.
Although the fruits have shown an upward trend since 2016, it is still lower than vegetables and
flowers. Currently, fruits constitute 34% of shipments of fresh produce from Kenya, with Avocado
having the lion share. The Kenyan Avocado recorded 9990 shipments in 2020, shipping to 57
destinations from 35 in 2017. The other fruits shipping from Kenya are Pineapples being the second
most exported fruit, followed by Mango, Passion Fruit and Raspberries as the fourth most exported
fruit. Other fruits that are recording an increase in volume are lemons, pawpaw, custard, and banana.
Figure 18-fruits as a percentage of total fresh produce - source HCD

43
 Fruits as a percentage of total fresh produce
exports

23% 25% 34%

19% 19%
Total Volume Exported
Fruits
2016 2017 2018 2019 2020

Fruits Total Volume Exported

Table 10 shows the performance of fruits shipping from Kenya. The fruits that have demonstrated
consistent growth over the last five years are Avocado, Mango, passion, raspberries and pineapple.
The other fruits seem to be inconsistent, and there is a need to investigate why. Pawpaws, lemons and
banana have shown growth potential based on the data belowError! Reference source not found..
Fruits that are still low in volume can be developed further.
Table 10-performance of fruits by variety
Fruits 2016 2017 2018 2019 2020
Avocado 38,701,698 46,647,630 64,477,082 59,331,039 71,758,741
Mango 9,020,933 9,306,896 9,659,925 9,446,610 6,624,928
Passion 529,367 524,270 595,959 596,673 787,773
Raspberries 296,151 188,587 264,196 97 450,519
Pineapple 27,288 202,485 494,759 12,298,432 24,030,246
Custard 25,556 13,392 30,712 22,735 20,382
Strawberry 1,175 48 1,929 165,303 7,356
Apple 2,674 6,776 14,671 8,211 4,804
Pawpaw 7,282 1,592 8,558 11,461 43,220
Passion J 410 390 3,305 122 870
Lemon 2,455 2,212 574 817 38,870
Banana 7,282 42,454 881 752 16,674
Others 36,719 8,635 446 225 2,582
Total Fruits 48,658,990 56,945,367 75,552,997 81,882,476 103,786,965

18.19 ANALYSIS ON MOVEMENT OF VEGETABLES

Figure 19 shows that vegetables constituted 30% of total fresh produce exported in 2016. However,
vegetables have declined from 30% in 2016 to 20% in 2020 as a percentage of total fresh produce
exported. The decrease in vegetables is due to the increase in the share of fruits, increasing from 19%
in 2016 to 34% in 2020.
Figure 19-Vegetables as a percentage of total fresh produce exports

44
18.20 PERFORMANCE OF VEGETABLES BY VOLUME EXPORTED
The analysis on vegetables shows that mixed vegetables represent the largest category at 33.3 million
kgs in 2020, as shown in Table 11. However, the single most exported vegetable from Kenya is the
French beans, shipping to 34 destinations having recorded 18 million kgs in 2019. In 2020 French
beans recorded a significant decline in volume at 14 million kgs due to the COVID 19 pandemic when
there were no flights between March and August 2020. On the other hand, Basil is the single most
export herb at 6.6% of total vegetables exported. In 2020 1.7 million kgs of basil was exported to 32
destinations.
Table 11-performance of vegetables by variety
Vegetables 2016 2017 2018 2019 2020 TREND
Mixed Vegetables 29,533,334 30,545,851 31,010,079 35,710,305 33,371,129
Bean Processed 20,463,614 26,964,246 29,299,814 5,577,735 -
Fine Beans 20,100,179 20,208,846 22,098,505 18,416,901 14,379,474
Snow Peas 2,666,583 2,332,652 2,154,385 2,296,690 2,103,980
Aubergines 1,357,063 1,176,129 1,176,377 1,387,226 882,420
Herbs 1,133,189 1,727,001 2,525,736 3,728,248 3,197,401
Snap Peas 1,088,506 898,328 687,190 859,517 1,004,643
Others 908,595 415,452 6,599,689 767,717 502,411
Chilies 902,672 1,388,462 1,056,623 1,286,413 1,931,225
Broccoli 467,548 672,025 574,602 855,081 913,800
Garden Peas 258,549 296,343 22,938 197,131 243,921
Basil 214,552 445,408 987,924 1,716,753 1,784,447
Chives 103,061 134,307 158,732 182,592 120,903
Baby Corn 60,126 35,229 61,684 85,077 117,488

18.21 ANALYSIS ON MOVEMENT OF FLOWERS

Cut flowers command the largest share of fresh produce exported from Kenya. Analysis for the period
2017 to 2020 indicates that the movement of cut flowers has been on an upward trend. As shown in
Figure 20, there was a reduction in volume by 18% in 2020 due to the COVID 19 pandemic although
it did not affect the value.
Figure 20-Movement of Flowers by volume – Source HCD

45
 Flowers
200 120,000
Millions

Millions
180
100,000

METRIC TONNES
160
140 80,000
120
KES

100 60,000
80
60 40,000
40 20,000
20
0 0
2016 2017 2018 2019 2020
Volume 133,658,33 159,961,19 161,227,15 173,719,29 142,477,77
Value 70,829,466 82,248,862 113,165,18 104,141,75 108,701,09

18.22 ANALYSIS OF PERFORMANCE OF FLOWERS BY VARIETY

Kenya’s rose flower is the single most exported flower from Kenya and the only fresh produce product
with the highest global footprint at 123 destinations. As shown in Table 7, there were 297,541
shipments of roses representing 107,266,909 kgs to 123 destinations in 2020. Other varieties have
been performing, although the carnations seem to be on a declining trend.
Table 12-performance of flowers by type
Cutflowers 2016 2017 2018 2019 2020
Roses 114,285,596 132,767,950 129,688,504 138,208,040 107,266,909
Mixed Flowers 5,487,176 9,846,092 14,167,462 17,267,381 20,378,122
Carnation 2,741,710 2,146,707 1,501,506 1,339,274 1,107,795
OTHERS 1,859,052 1,509,661 1,688,722 1,760,540 1,678,855
Hypericum 1,792,984 1,970,048 2,215,107 2,370,341 2,028,786
Gypsophilla 1,624,830 2,265,958 2,423,889 2,398,205 1,617,378
Cuttings 1,362,282 3,113,738 2,634,326 3,092,155 2,640,548
Alstroemeria 1,205,935 1,674,082 2,190,182 2,225,863 2,017,969
Statice 1,015,230 719,525 897,240 957,523 929,574
Solidago 736,624 796,050 791,487 643,968 450,442
Hydrangea 398,913 427,721 399,426 436,925 213,644
Veronica 353,907 924,660 1,004,630 1,298,906 693,877
Calla Lillies 272,128 579,058 395,985 157,377 19,135.57
Chrysanthemum 250,120 702,199 525,095 819,502 896,606
Eryngium 223,304 248,206 328,870 263,795 207,002
Delphinium 26,392 239,911 316,781 430,193 289,313
Pelargonium 22,151 29,628 57,939 49,310 41,819

18.23 ANALYSIS OF SURVEY RESPONSES OF EXPORTER’S SHIPPING AIR.

The study undertook a telephone interview with various exporters and freight forwarders. The study
sought to find out the level of satisfaction of the exporters on the multiple services provided by the
different agencies. As shown in Figure 21, 84% of the exporters interviewed are small exporters. The
findings indicate that only 16% of the exporters use freight forwarders and they are mainly in the large
category.
Figure 21-Category of Exporter and Use of Freight Forwarder

46
Figure 22-analysis of responses from exporters

Satisfaction with services from HCD: A majority of the exporters interviewed indicated that they
were satisfied with the services offered by HCD at the point of export, as shown by Figure 22. They,
however, stated that the export certificate obtained from HCD for each shipment should be done away
with as it is not required anywhere outside Kenya.
Satisfaction in obtaining a phytosanitary certificate: The analysis shows that 16% of the
respondents are not satisfied with the issuance of the phytosanitary certificate, whereas 48% were
moderately satisfied. The dissatisfaction is due to the poor reliability of the Electronic Certification
System (ECS), which goes down from time to time. Most of the exporters indicated that they hire
someone who is paid per document to run around and get things done when the systems are down.
However, the large exporters indicated that they do not process export documents as the freight
forwarder does this.
Time taken to obtain all clearance documents to export: Most exporters indicated that when the
systems are up and running, it takes less than 30 minutes to get documents. However, when the
systems are not working it can take upto two hours to obtain documents. However, the large exporters
indicated that the freight forwarder does all their export processing.

47
Freight charges: 32% of the respondents indicated that they were dissatisfied with the freight charges.
The reason behind the dissatisfaction arose due to the introduction of volumetric weight. One of the
large exporters indicated that big head roses takes up a lot of space and therefore charges based on
volume makes it very expensive to ship them hence reducing profit margins. The exporters indicated
that heavy costs on shipment of fresh produce are bound to make products from Kenya uncompetitive.
Transportation to Airport: As shown on Figure 22 30% of the respondents were dissatisfied with
the transportation of products to the airport, whereas 20% and 50% were satisfied. Further
interrogation of the respondents indicate that the small exporters are more challenged when
transporting products as they have to hire trucks or pickups. However, the large exporters do not have
any challenges as they are vertically integrated and have invested in refrigerated trucks. An interview
with the Manager of Bliss Farm indicated that they hardly face any challenges at the weight bridges.
He further noted that over the last ten years he has only been affected twice.

Interviews with Freight Forwarders, Transit Shed Operators and Airlines

An interview with the freight forwarders, transit shed operators and airlines responded as follows:
Infrastructure: The interview findings with airlines and freight forwarders indicated that the roads
and the apron are in poor condition and affect the transportation of the fresh produce to the aircraft.
They indicated that due to the roads' poor state, they are forced to rearrange the packed produce as
they will have shifted into one side of the packaging.
Break up of the cold chain: The freight forwarders and the transit shed operators indicated that when
transporting fresh produce from the transit shed to the aircraft, it takes upto 30 minutes before reaching
the aircraft, especially when the aircraft is not parked on the cargo apron. This results in breaking of
the cold and may affect the product quality on arrival in its final destination.
Service levels from regulatory agencies: The freight forwarders indicated that they have been able
to negotiate station of all regulatory agencies in their premises and therefore do not have any challenges
in obtaining documentation.
Concession Fees: All the exporters and freight forwarders indicated that the payment of the
concession fee process is very time consuming as the monies must be paid to the bank. The Kshs.250
shillings concession fee is normally paid before customs clears the goods for export. The exporters
suggested that the payment of concession fees should be made monthly, especially for large exporters
who have to process more 400 documents per day.

Interviews with Fresh Produce Associations

The study conducted interviews with the CEO’s of Flower Council and FPEAK. The CEO of the
Kenya Flower Council indicated that most of the large exporters are vertically integrated and therefore
are not faced with a lot of the logistics challenges faced by small exporters. He stated that since the
small exporters are operating individually, they cannot consolidate their products to cut down costs.
The CEO of FPEAK indicated that the large exporters have very few logistical challenges. However,
he noted that most of the exporters are being charged for branding their vehicles. The County
governments require that all branded vehicles pay advertising fees, resulting in vehicles being
impounded. This is an issue that is likely to discourage investors.
48
18.24 IMPACT OF COVID 19 ON AIR AND SEA FREIGHT
The advent of the COVID 19 pandemic led to the suspension of international flights to and from Kenya.
The ban on passenger flights led to reduced airfreight capacity by up to 40% as air freight in Kenya is
dominated by belly capacity. According to FPEAK, the ban led to a loss of air freight capacity from
the usual 5000 tonnes per day to 1.5 tonnes. The reduced airfreight capacity led to an increase in
airfreight costs from US$1.80 to US$ 4, as well as an increase in transit time.
According to Food and Agriculture Organization (FAO), 2020, the efficacy of logistics is critical for
the agri-food sector, particularly in times of crisis due to the adverse disruptions on the food supply
chain. To address the airfreight situation and to ensure a continuous supply for high quality and fresh
produce, Kenya Airways converted passenger flights to airlift approximately 40 tonnes of fresh fruits
and vegetables to Europe. This was in addition to other charter freighters who have been airlifting
produce from Kenya. Sea freight, on the other hand, did not face much disruption. Therefore,
governments and firms need to support the development of efficient logistics systems to enhance the
performance of agri-food firms. These efforts include establishing policies and strategies to improve
infrastructure, telecommunication networks, power supplies, ICT facilities, and training programs to
enhance transport resilience.
Kenya does not have a national freight and supply chain strategy, which would be beneficial, especially
during disruptions such as the COVID 19 pandemic. The disruption on supply chains worldwide,
including Kenya, has demonstrated that inadequate preparedness, especially for fresh produce supply
chains. The disruption that has been witnessed since the pandemic was declared poses a serious question
on the Fresh Produce Supply chain's resilience. Therefore, the study seeks to assess the impact of COVID
19 on the fresh produce supply chain by Sea and Air and the freight logistics resilience capacity to identify
the gaps and make recommendations on possible interventions.

49
19 MARITIME TRANSPORT
Maritime transport is the pillar of international trade and a critical engine driving globalization
(UNCTA, 2018). According to UNCTAD, 2018 report, approximately 80 per cent of global trade by
volume is handled by maritime transport. In developing countries, a total of 60 per cent of trade by
volume is loaded, and 57 per cent unloaded in developing-country ports. This demonstrates a shift by
developing economies which was previously a source of raw materials.

19.1 OVERVIEW OF MARITIME INFRASTRUCTURE IN KENYA

Kenya Ports Authority manages the Port of Mombasa. It is one of the busiest ports along the Eastern
African coastline and is one of the gateways to East and Central Africa. The port has 19 deep-water
berths, out of which 17 handle containers and conventional cargo. There are two oil jetties for refined
and crude oil with a capacity of handling tankers of up to 80,000 DWT. The Port of Mombasa is
equipped to service various types of general cargo, such as: Dry bulk (fertilizers, grains, soda ash, and
cement); Liquid bulks (crude oil and petroleum products); Bagged products (like coffee, sugar, tea);
Breakbulk (timber and iron and steel); and Roll-on/roll-off (motor vehicles and machinery
The Container Terminal at the Port of Mombasa has six dedicated container berths with a capacity of
1.6 million TEUs. The Second Container Terminal, developed under the Mombasa Port Development
Project (MPDP) in 2016, has two berths with a quay length of 560 metres and an annual capacity of
550,000 TEUs. The development of the new container terminal at the Port of Mombasa on 100
hectares at the western side of the existing Kipevu Oil Terminal (KOT) is complete and operational.
It has a yard capacity of 4,135 ground slots, 1,090 and 3,045 for yard Berths nos. 20 and 21,
respectively. The new terminal comprises two berths of Panamax and Post-Panamax container vessels
of 20,000 tonnes and 60,000 tonnes, respectively.
Phase II of the second container terminal, which is under construction, will increase the port's capacity
by 450,000 TEUs upon completion by the end of 2021. There are also plans to develop a third phase
that will increase the port's capacity to 2.4 million TEU by 2025. The current demand forecast is for
2.412 million TEU by 2025, and by 2035 the demand is expected to reach 3.789 million TEU.
The port has 543 plugging points for reefer containers. The current capacity of reefer points is adequate
and does not pose any challenge to reefer containers. KPA charges7 US$2 per house for 20ft reefer
and US$3 for a 40ft reefer.
Kenya is a signatory to 25 out of the 59 international maritime conventions(IMO) and more than 13
conventions/recommendations under International Labour Organization (ILO) on seafarers. Kenya is
also a signatory to the United Nations Convention on the Law of the Sea (UNCLOS) 1982. UNCLOS
encompasses all aspects of the uses of the ocean and establishes a comprehensive legal framework for
the regulation of all ocean space.
On 7th April 2021, MV SL Tweety made her maiden call at the Port of Mombasa, where she discharged
769 TEUs at Berth No.17. The ship is 212 meters in length overall (LOA) and has a capacity of 2,450
TEUs. The vessel is part of Jambo Service of Volta Shipping Services and will be calling at the Port
of on a monthly basis with local, transit and transhipment cargo. Another maiden call was made on
24th April 2021 by Cimbria, of Diamond Shipping Line, operated by Gold Star Line Limited.

7
https://www.kpa.co.ke/InforCenter/Documents/Tariff.pdf KPA TARIFF BOOK
50
19.2 LINER CONNECTIVITY INDEX
The Liner Shipping Connectivity Index captures how well countries are connected to global shipping
networks. The index is based on five components of the maritime transport sector: the number of
shipping lines servicing a country; the size of the largest vessel used on these services (in TEU); the
number of services connecting a country to the other countries; the total number of vessels deployed
in a country and the total capacity of those vessels (in TEU). High connectivity provides a wider choice
to exporters and importers. It also contributes to lower transport costs and leads to faster movement
of goods. As shown on Figure 23 the connectivity index for the port of Mombasa was high in 2018 at
21 and reduced in 2018 to 17. The reduction could be attributed to the reduction in licensed shipping
lines from 26 in 2018/19 to 20 in 2020/21.
Figure 23-Liner Connectivity Index

19.3 LICENSED SHIPPING LINES AS AT 2021

A total of 20 shipping lines are licensed to operate from the port of Mombasa in the period 2021 as
shown on Table 13. This is a reduction from the period 2020, which had 26 licensed shipping lines.
Table 13-List of Licensed Shipping Lines in 2021
LICENCED SHIPPING LINES AS AT 2021

• Emirates Shipping Line • Hapag Lloyd Aktiengesell Schaft

• United Africa Feeder Line (UAFL)
• Evergreen Marine (Singapore)
• Sea Consortium PTE Ltd
• Ignazio Messina & C.S.P.A
• Hyundai Glovis
• W.E.C Lines B.V
• Sarjak Conatiner Lines PVT Ltd
• EMKAY Lines (PVT) Ltd
• Eukor Car Carriers INC
• Mitsui O.S.K Lines Ltd
• Pacific International Lines (Private) Ltd
• Cosco Shipping Lines Company Limited
• Kenya National Shipping Line
• Safmarine Container Lines
• Maersk Line Limited
• Maersk Line A/S
• Orient Overseas Container Line (OOCL)
• Mediterranean Shipping Company S.A

51
19.4 CARGO THROUGHPUT
Port productivity and efficiency are essential for an improved logistics environment that will support
trade facilitation and competitiveness initiatives. The port of Mombasa has recorded improvements
on both efficiency and productivity indicators. In 2018 the average annual ship turnaround time was
3.4 days compared to 4.4 days in 2017 and is currently on average two days. The increased efficiency
at the Port of Mombasa has led to growth in the volume of trans-shipments. The two-day ship
turnaround time at the Mombasa Port is one of the best among the neighbouring ports and is a key
indicator of port efficiency.
Table 14 outlines the performance of the Mombasa Port for the period 2015 to 2019. The total cargo
throughput at the port increased by 11.3 per cent from 30.9 million tonnes in 2018 to 34.4 million
tonnes in 2019. The number of ships calling on the port of Mombasa, however declined in 2018.
Table 14-Cargo Throughput 2015-2019 - Source KNBS

UNIT 2015 2016 2017 2018 2019 TREND

Container Traffic TEU 1,076,118.00 1,091,371.00 1,189,957.00 1,303,862.00 1,416,654.00

Ships Docking NO. 1,694 1,607 1,767 1,605 1,675

Imports 000’MT 22,681 23,116 25,604 25,475 27,558

Transit (imports) 000’MT 7,126.00 7,217.00 7,903.00 8,873.00 9,244.00

Exports 000’MT 3,533.00 3,679.00 3,794.00 4,125.00 4,277.00

Exports (Transit) 000’MT 541.00 531.00 734.00 731.00 703.00

Total throughput 26,732.00 27,284.00 30,345.00 30,923.00 34,444.00

19.5 PORT OF MOMBASA REGISTERS IMPROVED PERFORMANCE IN FIRST QUARTER OF 2021(JAN-

MAR)8.
The Port of Mombasa handled 9.54 million tons in the first quarter of 2021 compared to 8.62 million
tons in a similar period in 2020, recording a 10.7 percent growth rate. The improved performance led
to increased volumes of container traffic by 14.3%, from 389,515 TEUs to 340,812 TEUs recorded in
a similar period in 2020. Transhipment traffic also improved performance by 68.4%, recording 69,658
TEUs against 41,363 TEUs during the corresponding period in 2020. On the other hand, transhipment
exports increased by 6.8%, from 146,049 TEUs to 156,007 TEUs in 2021.
The month of March 2021 boosted the Port of Mombasa's performance, registering a significant growth
in both conventional and containerized cargo. A total of 3.48 million tons were recorded in the month
of March 2021 against 2.71 million tons realized in the corresponding month in 2020, representing a
positive performance of 768,453 tons or 28.4 %.

19.6 SHORE HANDLING SERVICES

Shore handling refers to handling cargo at the Shoreside or at a place near the quay but within the port
precinct. Shore handling is an essential service for fresh produce as it involves receiving and stacking

8
https://www.kpa.co.ke/Pages/2021Q1Performance.aspx(accessed 7th May 2021)

52
cargo of import and/or export cargo, handling or transferring load within the port, and handling or
transferring cargo for delivery or loading. The service includes marshalling, reefer plugging, stripping
and/or restuffing, handling self-propelled units, and handling crated animals.

19.7 SEA FREIGHT EXPORT PROCESS

The sea freight process is much more complex than airfreight. The study findings reveal that the process is
quite lengthy and laborious. It takes approximately 5 days to arrange a sea freight movement.

19.8 MOVEMENT OF FRESH PRODUCE BY SEA

The first attempt to move fresh produce by sea was made in 2013 by Hortiwise by analyzing the
possibilities of moving roses from Kenya to the Netherlands. The study findings indicated that the
main challenge on the shipping sea is caused by the transhipment risk at the port of Salalah or Oman.
Currently, there are no direct connections to Europe from Kenya, which increases the risk of fresh
produce in the event of delays at the transhipment port. However, in April 2021, VSC sponsored the
shipment of flowers by sea to address falling air freight capacity. The project was executed through
Flamingo Horticulture, where the team was trained on sea freight. To date, the project has successfully
shipped five containers of flowers from Kenya to the UK by. The VSCF indicate that the quality and
vase life of the flowers has been excellent.
Table 15 shows the analysis of shipments by sea from 2015 to 2021. 2017 recorded the highest number
of shipments of fresh produce and since then the number of shipments have been declining.

53
Table 15-Shipments by sea 2015-2021
YEAR NO OF NO OF NO. OF PRODUCTS
SHIPMENTS DESTINATIONS

2015 91 14 16
2016 99 21 18
2017 126 25 19
2018 93 26 19
2019 88 26 10
2020 68 21 15
2021 62 19 8

19.9 ANALYSIS OF TOP TEN DESTINATIONS OF FRESH PRODUCE BY SEA

Figure 24 shows the top 10 destinations for Kenya’s fresh produce by sea. Currently, Somalia is the
top destination for fresh produce from Kenya, followed by the UAE and the United States at a distant
third with a share of 9%.
Figure 24-% share of top ten destinations

19.10 PERFORMANCE OF TOP 10 PRODUCTS

The top products shipped by sea are shown on Figure 25 Cashew Nuts are is top product moved by
sea, whereas Avocado is ranked at position 4.
Figure 25-top ten products by kgs

54
The study's findings indicate that the movement of fresh produce by sea has been declining over the
years. Among the products showing a declining trends are garlic and chillies, as shown in Figure 26.
Figure 26-Chillies and garlic movement by sea

Figure 27 shows products that have shown increase in volume over time. These are pineapples and
watermelons.
Figure 27-movement of watermelon and Pineapple

Dried lemons destined to various countries is the most shipped product by sea after cashew nuts.
Figure 28 shows the destinations for dried lemons. 84% of the dried lemons are shipped to the United
Arab Emirates.
55
Figure 28-Movement of Dried Lemons

19.11 DECLINING DESTINATIONS BY SEA

As shown in Figure 29, Italy as a destination has been declining over time. Italy has been importing
Peas and Chillies from Kenya, and this has been declining since 2018, as shown. The trend line
indicates that by 2021 Italy may no longer be a destination for sea freight products from Kenya.
Figure 29-Shipments to ITALY

325
WEIGHT (KG)

32 19

2018 2019 2020

YEAR

19.12 IMPACT OF COVID 19 ON MARITIME TRANSPORT FROM KENYA

On the maritime side, the number of shipping lines calling at Mombasa Port declined from 43 ships in
January 2020 to 41 by March 2020. The impact led to a reduction in containers handled from 129,213
TEUs in January 2019 to102,643 TUEs in March 2020. The cancellation of vessel calls affected

56
consignments coming to Mombasa. However, in March 2021, the Port of Mombasa has posted positive
results showing a rebound in port calls. The port of Mombasa did not experience blank sailings during
the period. However, port calls for the year 2020 could not be obtained and therefore, proper analysis
of the impact of COVID could not be established.

20 EXPORT POTENTIAL OF VARIOUS FRESH PRODUCE PRODUCTS.

The Horticultural industry in Kenya needs to focus on the sector's continued growth through targeted
product and market growth. This requires continuous strategic exploitation of existing and potential
markets and expansion of product basket. As shown on Figure 30 there is still room for expansion of
fruits, vegetables and flowers. The ITC export potential map indicates that in Cut flowers, Kenya has
about 36% of unexploited potential. On avocados and nuts, Kenya has only exploited 38% of its
potential, which means there is still room to grow. On the vegetable category, there is still about 59%
growth potential.
Figure 30-Kenya's Export Potential in general

20.1 ANALYSIS OF EXPORT POTENTIAL BY REGION

An analysis of the Horticultural trade performance through the International Trade Centre (ITC) trade
map indicates that Kenya has not fully exploited its potential in various markets and products. The
study has undertaken an analysis of Kenya's exports in different regional trade blocs. Within the
region, Kenya can expand its markets to the following regional blocks and countries:a)The EAC - a
Customs Union of 6 countries with a combined population of 170 million (including Kenya). Kenya
has an opportunity to export any products that qualify under the EAC Rules of Origin (ROO) to the
entire bloc of 6 countries on duty-free basis; b)The COMESA – made up of 20 countries with a
combined population of 470 million people. Kenya has an opportunity to export any products that
qualify under the COMESA Rules of Origin to all the 20 countries on a preferential tariff basis.

57
20.2 KENYA’S EXPORT POTENTIAL TO EUROPE
An analysis of Kenya’s fresh produce potential, as shown in Figure 31 on indicates that Kenya has
exploited 77% of its cut flowers export potential, 65% on unrooted cuttings, 37% on Avocados, 1%
on carrots, 37 in Europe, leaving approximately 37% on Nuts and 76% on vegetables. There is still
room for expansion in this market, which can increase both volume and product portfolio.
Figure 31-Kenya's products with potential in Europe

Figure 32 indicates the range of products that Kenya can diversify into within the Eu Market. The data
findings of this study indicate that most of the products, as shown in Figure 32 as currently low on
volume. This can be attributed to various factors, including the slow uptake of sea freight on fresh
produce. Products such as onions and sweet potatoes would best be shipped by sea due to the weight.

Figure 32-Kenya's diversification products to Europe

58
20.3 KENYA’S EXPORT POTENTIAL TO THE PACIFIC
According to the ITC export potential maps shown in Figure 33 Kenya has exhausted its export
potential on cut flowers to the pacific. However, there is huge potential for avocadoes and nuts. The
analysis on the route network seems to indicate that there is a need to develop more options to access
this market to exploit the potential.
Figure 33-Kenya's Export Potential to the pacific

20.4 KENYA’S EXPORT POTENTIAL TO THE AMERICAS

The ITC export potential map indicates that only 4% of the export potential has been exploited, leaving
about 96% room for growth of cut flowers and unrooted cuttings in the American markets. However,
the map shows that there is no room for growth in nuts in the Americas. These findings are supported
by the export data from KEPHIS, which indicate that Kenya is currently exporting many cashew nuts
to America by sea. On avocados and nuts there is a huge untapped potential in the American Market.
Figure 34-Kenyas export potential to the Americas

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20.5 PRODUCTS THAT KENYA CAN DIVERSITY INTO IN THE AMERICAS

Figure 35 shows the products that have potential in the Americas that Kenya can consider for
diversification. These are flowers, avocadoes, vegetables, pineapples and berries, among others.
Figure 35-product diversification to the Americas

20.6 KENYA’S EXPORT POTENTIAL IN AFRICA

As shown on Figure 36 there is a huge export potential for Kenyan products in Africa. Among the top
products are vegetables, potatoes, onions, avocadoes and mangoes. The map currently indicates that
Kenya has only exploited 18% of its vegetable potential in the African market. This is an indicator
that market development within Africa should be nurtured.
Figure 36-Kenyas export potential to African Markets

20.7 ANALYSIS OF EXPORT POTENTIAL BY PRODUCT

Figure 37 shows other products that have export potential from Kenya. As shown on the map these
are products that require value addition such as sauces, preserved fruits, fruit extracts and jams to name

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a few. This is an indicator on the need to explore value addition of fresh produce exports. Currently,
dyed roses are gaining traction in the market and the demand has been growing. This is an area that
Kenyan exporters can consider, especially the largest exporter of roses globally.
Figure 37-Products with export potential
21 RECOMMENDATIONS
The study makes the following recommendations:
Findings
• The study findings indicate that currently,
all the institutions involved in the exports of
fresh produce are collecting data separately,
and there is no harmonized system of
identifying products.
• There is no mechanism for coordinating
fresh produce logistics during disruptions.
During the pandemic, there was no clear
direction on the measures to take to support
the industry. Secondly there are no green
channels for fresh produce.
• The study findings indicate that risks that
are likely to affect the sector such as the
COVID 19 pandemic have not been
identified.
• Institutions handling fresh produce are not
coordinated. The study's findings indicate
that there are various institutions in the
Recommendation Responsibility
• Improve Data Collection and • KEPHIS, HCD,
adopt the Harmonized System KAA
for classifying Fresh produce.
• Develop a National Freight • HCD AND STATE
Strategy to support the sector. DEPARTMENT OF
The strategy will enable Kenya TRANSPORT
to respond to various logistics
challenges in a coordinated and
responsive manner. This will
also ensure that development
of green channels for fresh
produce can be entrenched in
policy. An example of a
country that has developed a
National Freight Strategy is
Australia.
• Undertake a fresh produce • HCD
logistics risk audit bi-annually
in order to identify and map the
risks. This will enable the
sector to develop response
strategies on various risks that
are bound to affect the sector.
• Enhance Institutional • Ministry of
coordination: This will Agriculture as the
enhance the efficiency of the lead agency in
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 export of horticultural products and there is exports and reduce costs and collaboration with
need to develop a coordination mechanism risks of interrupting the cold Ministry of
for the smooth execution of export chain. Coordination will also Transport and
processes. enhance market development. Ministry of Foreign
Affairs.
• Implementation of Trade Facilitation • Enhance and support • Ministry of Trade
Agreement is still low. Currently Kenya implementation of TFA, and Industry.
has only implemented 7.6%. especially on the need to
automate cross border
processes.
• The supply chains within the horticulture • Mapping of all horticultural • HCD
sector are not mapped and therefore it is supply chains: There is a need
difficult to have visibility on the efforts to map all the horticultural
required to support the various chains. supply chains by product to
have visibility of the supply
chain of each product. This is
will facilitate strategic
interventions as opposed to
reactive responses to issues as
they occur.
• Disjointed efforts by farmers leads to high • Adopt the Tea Collection • Private Sector
logistics costs. The study's findings model for French Beans: The
indicate that this is one of the products that French beans are the most
is adversely affected by poor road exported vegetable.
conditions. Most French beans are grown
by small farmers who rely on large
exporters to buy the product. The section
should consider development of collection
centres for French beans to reduce losses
arising from lack of access to markets.
• The study findings indicate there is no • Conduct supply chain surveys • Private Sector and
monitoring mechanism on fresh produce to support policy review and HCD
logistics. enhancement: The sector
should consider annual surveys
on fresh produce supply chains
in order to support policy
review and policy development
to support the sector.
• The study findings indicate that there is a lot • Undertake Food Loss Analysis • HCD
of post harvest losses which affects the study in order to develop
quality of the produce.. interventions towards
reduction of food loss due to
logistics challenges.
• Route Development for various airlines • Align route development • KAA AND KCAA
does not involve stakeholders from the strategy with export potential
Horticulture sector. for the country: Kenya
Airports Authority and the
Ministry of transport are
continuously enhancing route
development for air transport.
The horticulture associations
need to be incorporated in
order to inform the air transport

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• Some Countries such as Australia require
that fumigation is done at the country of
origin. This has an impact on the logistics
of the product. The study's findings
indicate that as more and more countries
institute fumigation requirements, there is a
need to consider developing a bio security
policy. This will support the sector and
reduce logistics burden that may arise due
to this requirements. A case in point are the
export of cranberries from Turkey to China.
Previously China required that the
cranberries undergo a 14 day fumigation
process. Turkey in its response developed
fumigation strategies at the country level
and currently cranberries from turkey only
undergo a 3 hour fumigation process in
China.
• The study findings indicate in depth
analysis of destinations markets is not
undertaken.
• The study findings indicate that issuance of
air service license may not be privy to fresh
produce flow corridor and may not provide
the required support to airlines applications.
on the requirements of the
sector.
• Develop a Bio-Security policy, • KEPHIS
especially on fumigation
protocols to ensure that it does
not in any way affect fresh
produce logistics.
• KEPHIS should share the • KEPHIS, HCD,
destination data annually to Ministry of Trade
facilitate further interrogation and Industry.
of destinations that have
dropped out. Continuous
analysis of fresh produce flow
corridors must be undertaken
to enhance existing markets,
address markets showing
declining trends, and consider
the development of new
markets.
• Horticulture trade associations • Private Sector
should consider participation
in application for air services
licensing to provide input,
especially on fresh produce
destinations of interest.
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22 REFERENCES
Arvis, j., m. Mustra, j. Panzer, l. Ojala and t. Naula, connecting to compete 2008: trade logistics in
the global economy, world bank. Worldbank.org/inttlf/resources/lpireport.pdf

FAO (2011). Global food losses and food waste .

FAO, (2009). Horticultural Chain Management for Countries of Asia and the Pacific Region

IATA, (2020) Air Connectivity: Measuring the connections that drive economic growth.
ICAO, (2015) Moving Air Cargo Globally: Air Cargo and Mail Secure Supply Chain and Facilitation

ITC, (2011). National Trade Policy for Success:

Kenya Airways Annual Report - 2019

Northern corridor performance in the wake of covid-19 pandemic.

Review of maritime transport report (UNCTAD) 2017

UNCTAD, (2018) A review of Maritime Transport Report

UNCTAD, (2020) A review of Maritime Transport Report

Vision 2030 Policy

www.fpeak.org

www.kaa.go.ke

www.kcaa.or.ke/legislation

www.kentrade.go.ke

www.kma.go.ke

www.kpa.co.ke

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