Transport Cabinet Secretary Kipchumba Murkomen concluded a deal with the Government of the Netherlands on Tuesday, March 26, aimed at unlocking the sea route for the horticultural and agro-logistics industries.
In a statement, the CS, representing President William Ruto, disclosed that the agreement is anticipated to create over 3 million jobs within the sector, with significant benefits for Kenyans.
The deal is poised to establish a cool logistics corridor, facilitating the efficient transportation of perishable goods.
"A well-functioning sea freight logistics system for perishables could double or even triple Kenya's horticultural exports, and that could create up to 3 million jobs in the horticultural and agro-logistics industries," Murkomen stated.
"Glad to have today signed, on behalf of Kenya, a Memorandum of Understanding with the Kingdom of the Netherlands to develop a cool-logistics corridor. The MoU I signed with the Dutch Ambassador in Kenya, Maarten Brouwer, will facilitate private investment in cool-logistics infrastructure to support the transportation of fresh produce by sea."
As part of the agreement, port facilities, transportation networks, and regulatory frameworks will be constructed to provide amenities for players from the private sector.
The cool-logistics corridor aims to set new standards for transporting fresh produce, thus benefiting bilateral trade and aiding the development of Kenya's agricultural sector.
"Kenya enjoys deep and cordial relations with the Netherlands that straddle the trade and transport sectors, as well as development cooperation," the CS added.
"Nearly half of Kenya's flower exports go to the Netherlands, with avocado exports also increasing substantially. The collaboration on the cool-logistics corridor will further deepen relations between Kenya and the Netherlands, which are gateways to East Africa and Europe, respectively."
The logistics corridor is projected to extend from Mombasa to Malaba and will be the largest of its kind in Africa upon completion.
Murkomen lauded the project for its potential to combat climate change through sea transport, which boasts significantly lower emissions compared to air freight (with emissions being 95 per cent lower).
Moreover, sea transport is more cost-effective, thus the development of a sea freight logistics system for perishables is poised to enhance Kenya's competitiveness in the global market.
"Ongoing developments around the Port of Mombasa, such as the Dongo Kundu Special Economic Zone, will provide a good environment for private sector investment," he concluded.
Kenya had previously purchased 300 wagons from China intended for use on the Standard Gauge Railway (SGR), to enhance the Madaraka Express Freight Service.
In February, Murkomen disclosed that a portion of these wagons would be allocated for transporting perishable goods, applauding the initiative as a step towards enhancing rail services and efficiency.
