The era of undercutting is over. The Kenya Transporters Association (KTA) has cracked the whip, setting mandatory minimum rates to save the industry from collapse.

In a decisive move to protect the logistics backbone of the economy, the KTA has issued a new benchmark for transport costs, declaring that operators can no longer absorb the skyrocketing costs of fuel, spare parts, and taxation. This is not just a guideline; it is a survival strategy. With operating pressures reaching a boiling point, the association is advising all transporters to strictly adhere to the new per-kilometre rates or risk insolvency.

The Cost of Doing Business

The transport sector has been bleeding. A combination of volatile global oil prices and a depreciating shilling has eroded margins to near zero. The KTA’s intervention is an attempt to restore sanity to a market rife with predatory pricing.

• The Benchmarks: The new rates are calculated to cover the true cost of operation, including driver welfare, vehicle maintenance, and insurance, ensuring sustainability.
• Market Impact: Cargo owners should brace for higher logistics costs, which will inevitably trickle down to consumer prices. However, KTA argues this is necessary to prevent a total supply chain paralysis.
• Solidarity Call: The success of this directive hinges on unity. KTA is urging members to resist pressure from powerful cargo brokers to lower rates, framing it as a battle for the sector’s future.

Economic Aftershocks

This move signals a hardening of the industrial landscape. Transporters are refusing to subsidize the economy at their own expense. As the new rates take effect, the ripple effects will be felt from the port of Mombasa to the shelves of Nairobi supermarkets.

The message to the market is uncompromising: pay up, or move your own cargo.