New business models contribute to warehousing demand in Kenya

The warehousing industry in Kenya is currently experiencing increasing demand from shippers seeking safe storage of their shipments for distribution or onward transit to neighboring countries. This has been attributed to various factors including a growing interest in Kenya as a business hub. Kenya’s unique geographical position has made it a key transit point for cargo destined for the local market as well as into the region. Today, the growth of SMEs in Kenya has exploded and contributed to an increase in logistics services such as warehousing. In addition, a number of importers today have turned to utilization of leased factors of production which are cheaper for retailers as opposed to the importer absorbing the cost and risk of running a non-core operation such as logistics while running the enterprise.