Trade Facilitation

Description

According to the World Bank Logistics Performance Index (LPI) (2012), which measures countries’ trade logistics efficiency, Kenya is ranked 122nd out of 155 countries. Kenya performs better than the averages of Sub-Saharan African countries in the areas of international shipments and timeliness. According to the World Bank Doing Business Report (2013), exporting and importing a standard container of goods cost USD 2,250 and USD 2,350, the sum of which are less than the regional average of USD 2,108 and USD 2,793. Moreover, in Kenya, it takes 26 days each to export and import a container, which are less than the regional averages of 31 days and 38 days respectively. However, further improvements are needed in customs, infrastructure, logistics competence and tracking and tracing. The government is aware the importance of creating efficient logistics for trading, however, Kenya’s low savings compared to other countries is a challenge for the government to mobilize resources for new investments and maintenance. Hence, several deteriorations can be seen in transport facilitations such as the poor condition of railways and the congestion on Kenya’s roads (World Bank 2013).

Logistics Performance Index (LPI): Country Comparison
Source: World Bank, Logistics Performance Index (LPI)

Note: World Bank, 2012

Logistics Performance Index – Evolution
Source: World Bank, Logistics Performance Index (LPI)

Note: World Bank, 2012