Nairobi – KIFWA Unveils Digitization & Green Logistics Blueprint to Slash Freight Costs

NAIROBI, July 26, 2025 — The Kenya International Freight and Warehousing Association (KIFWA) has officially launched its Strategic Plan 2025–2030, spotlighting a twin drive to eliminate paper-based customs processes and promote green warehousing—all aimed at dramatically reducing freight costs that currently consume as much as 30–40 percent of production costs.

🎯 A Strategic Shift Toward Digital and Eco-Friendly Logistics

At the Nairobi unveiling presided over by ICT Cabinet Secretary William Kabogo Gitau, KIFWA outlined its six pillars, with core emphasis on:

• A centralized digital platform to manage customs clearing, forwarding, and cargo tracking, replacing cumbersome manual paperwork. Industry leaders believe this will harmonize workflows, increase compliance, and heighten revenue integrity.

• Promoting eco-conscious warehousing, such as green building materials, energy-efficient infrastructure, and carbon tracking systems—designed to position Kenya’s logistics sector as environmentally responsible.

📉 Tackling Kenya’s High Logistics Bill

According to the Shippers Council of East Africa, logistics currently account for roughly 30–40 percent of production costs in Kenya—far higher than in Asian economies, where the figure stands at around 8 percent.

By digitizing customs workflows and integrating cargo visibility tools, KIFWA aims to reduce bureaucratic delays and enhance efficiency—thus driving down the high cost burden on Kenyan businesses.

🏛️ Aligned with National Digital Ambitions

CS William Kabogo affirmed that KIFWA’s roadmap aligns seamlessly with the government’s Digital Superhighway Initiative, underscoring logistics as a key enabler of the Bottom-Up Economic Transformation Agenda (BETA).

KIFWA Chair Fredrick Aloo described the strategy as a “contract with Kenya’s logistics future,” stressing that “we are done firefighting”—signalling a newfound leadership posture. The plan is an ambitious pivot toward policy influence, user trust, and predictive profit models.

📦 Impact on Trade Volume and Revenue

Together, KIFWA’s 1,200+ clearing, forwarding, and warehousing firms handle over 35 million tonnes of cargo annually, contributing nearly 9 percent of Kenya’s GDP—valued at roughly KSh 1.47 trillion by 2024.

KRA officials noted that customs agents collected KSh 879 billion in duties last year—nearly one third of total revenue—reinforcing the sector’s economic significance.

🧭 Looking Ahead: Legislation and Industry Reform

A key focus is advocating for the expedited passage of the Model Customs Agents and Freight Forwarders Management Bill, a long-standing proposal aimed at establishing a professional regulatory framework and cross-border recognition for EAC clearing agents.

✅ Quick Takeaways

Bottom line: KIFWA’s new blueprint marks a fundamental transformation in Kenya’s logistics sector—from paper-laden bureaucracy to digital, green, and compliance-led trade infrastructure. Success could slash logistics costs, boost competitiveness, and fortify Kenya’s role as East Africa’s trade gateway.