How Kenya Logistics And Warehousing Market Evolved?
Logistics is vital for the economic performance of any economy. Kenya, like other African countries, has structural issues such as logistics infrastructure but the ease of doing business and favorable political climate has steered it ahead in the race.
Kenya Logistics and Warehousing Market consist of various activities such as freight forwarding, warehousing, e-commerce logistics, 3PL services, express delivery and more. The market also consist of value-added logistics services such as assembly, consolidation, co-packing, cross-docking, direct store delivery, fulfillment, import/export, inspection, inventory management, packaging, pick and pack, pool distribution, record retention, reverse logistics, sorting, translating, transportation management, and more.
Kenya Logistics and Warehousing market was evaluated to grow from USD ~ million in 2013 to USD ~ million in the year 2018 at a compounded annual growth rate (CAGR) of ~% during the period. The growth was mainly due to a rise in infrastructural investment by the government, mainly in the transport sector and Kenya’s strategic location as the gateway to East Africa. In 2018, Kenya achieved rank 61 in the Ease of Doing Business Index and rank 68 in the Logistics Performance Index.
Contrasting to the global trend, the retail business in Kenya is thriving, making it a lucrative region for international retailers. The increasing middle class and urban-educated the population have pushed the demand for shopping centers and e-commerce in Nairobi and other urban Counties of Kenya.
Kenya Freight Forwarding Market Segmentation
By Mode of Freight
Road Transport dominates the freight forwarding market with a share in overall market revenue of ~%. Sea Transport is popular in Kenya for international freight since the Mombasa Port is one of the sizeable commercial ports in entire Africa. Rail Transport is expected to grow by ~% with introduction of SGR.
By Type of Freight
International freight forwarding accounted for larger revenues share in overall Kenya Freight Forwarding Market, accounting for a share of ~% in the year 2018.
By Flow Corridors
Over the past decade, Asia has replaced Europe as the major trading partner of Kenya with a share in overall share of ~% in international freight. Europe is the biggest export destination of Kenya’s cut-flower market with a share of ~%.
By End Users
The major end-users of freight forwarding services in Kenya include the Food and Beverage, FMCG and Industrial sectors with a share of ~%, ~%, and ~% respectively. The F&B sector also creates a demand for cold transportation for perishable items. The Kenya government in its Big Four Development Plan for lays emphasis on food security and manufacturing. This is expected to boost demand for logistics in FMCG and Industrial sector furthermore.
By Contract and Integrated:
Third-Party Logistics in Kenya has been thriving in the Kenya Freight Forwarding Market with a share of ~% in overall market revenue.
Kenya Warehousing Market Segmentation
By End Users
The major end-users of warehousing services in Kenya include the FMCG, Horticulture and Retail sectors with a share of ~%, ~%, and ~% respectively. The Horticulture sector also creates a demand for cold storage for perishable items. The consistent rise in the number of modern retail outlets has during the period 2013 to 2018 led to an increment in the demand of warehouses as well.
By Type of Warehouse
Open yards are the low specification grade C warehouses that are most prevalent in Kenya, constituting a share of ~%. Closed normal warehouses are also C grade warehouses but with walls and contribute revenue share of ~%. Closed AC and Cold Storage are relatively few and contribute a share of ~% and ~% respectively.
By 3PL and Owned Logistics
Third-Party Logistics in Kenya has been thriving in the Kenya Warehousing Market with a share of ~% in overall market revenue.
By Operation Model
The industrial/retail freight segment has dominated the overall Kenya warehousing market with a massive revenue share of ~% in the year 2018. There are a few industrial areas such as Tilisi, Tatu Industrial & Logistics Park, Northlands Commercial Park, Infinity Industrial Park and Nairobi Gateway Logistics Park that is driving the growth of industrial warehouses.
By Regions:
Nairobi and Mombasa are the two most prime locations in Kenya in terms of trade and logistics. Therefore, the warehousing space in Kenya has been clustered around these two regions with a share of ~% each.
Key Segments Covered:-
Freight Forwarding Market
By Mode of Freight
Road Freight (Revenue, Transport Costs)
Rail Freight (Revenue, Volume, Stock of Transport Equipments, Railway Lines, Tariff and Volume Discounts
Air Freight (Revenue, Volume, Flow Corridors, Clearing & Forwarding Charges, Export/Import Rates)
Sea Freight (Revenue, Number of Ships & Containers, Volume, Principal Commodities, Clearing & Forwarding Charges)
Pipeline (Revenue, Throughput Volume)
By Type of Freight
International Freight Revenue
Domestic Freight Revenue
By Flow Corridors (Revenue, Volume of Trade, Principal Commodities)
Asian Countries
European Countries
Middle East
North America
African Countries
By Contract and Integrated
Contract Logistics Revenue
Integrated Logistics Revenue
By End User Revenue
Food and Beverages
FMCG
Industrial
Others (Construction, Chemical, Automotive and others)
Warehousing Market
Revenue by End User
FMCG
Horticulture
Retail
Revenue by Type of Warehouse
Closed Normal
Open Yard
Closed Ac
Cold Storage
Revenue by Contract and Integrated Logistics
Contract
Integrated
Revenue by Operation Model
Industrial/Retail
ICD/CFS
Cold Storage/Freezer/Chiller
Warehousing Space by Region
Nairobi
Mombasa
Others (Eldoret, Thika, Nakuru, Kiambu, Machakos and Kakamega)
Courier, Express and Parcel Logistics Market
Revenue by International and Domestic Shipments
International Shipments
Domestic Shipments
Revenue by Type of Express
Air Express
Ground Express
Revenue by Market Structure
B2B
B2C
C2C
3PL Logistics Market
By Market Type (Freight Forwarding and Warehousing)
Snapshot on E-Commerce Logistics Market in Kenya
Companies Covered
DHL
DB Schenker
CEVA Logistics
Kuehne Nagel
Panalpina
Maersk Line
Agility Logistics
FedEx TNT
Bollore Transport and Logistics
Siginon Group
Freight Forwarders Kenya
Key Target Audience
Freight Forwarding Companies
E Commerce Logistics Companies
3PL Companies
Consultancy Companies
Express Delivery Logistics Companies
Logistics/Warehousing Companies
Real Estate Companies/ Industrial Developers
Time Period Captured in the Report:-
Historical Period – 2013-2018
Forecast Period – 2019-2023
Key Topics Covered in the Report:-
Open Yard Warehouse Market Revenue Kenya
Closed AC Warehouse Market Share Kenya
Cold Storage Warehouse Market Kenya
Industrial Warehouse services Kenya
Retail Warehouse Market Report Kenya
Number of Freezer and Chiller Warehouse Kenya
Kenya Logistics Market Revenue
Industrial Warehouses Market Kenya
Open Yard Warehouse Market Revenue Kenya
Closed AC Warehouse Market Share Kenya
Cold Storage Warehouse Market Kenya
Industrial Warehouse services Kenya
Retail Warehouse Market Report Kenya
Kenya Logistics Market Analysis
Kenya Logistics Industry Growth
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Ken Research
Ankur Gupta, Head Marketing & Communications
Sales@kenresearch.com
+91-9015378249
Ken Research
Ankur Gupta, Head Marketing & Communications
Sales@kenresearch.com
+91-9015378249
