Kenya Cold Chain Solutions
Kenya’s growing, largely agricultural based economy is creating a demand for new cold chain solutions.
Kenya is known as one of the biggest exporters of cut flowers in the world, accounting for 38% of imports into the European Union (EU). While this strategic industry has developed relatively advanced cold chain systems, those established for other temperature-controlled foods such as fruits, vegetables, meat, and dairy have been more ad-hoc.
Kenya has more than 200 exporters of fruit and vegetables, most of them small and medium-sized companies. Demand for fresh produce is being driven by growing export opportunities. Foreign consumers are demanding new forms of prepared fresh fruits and vegetables, which can require washing, peeling, cutting, and packaging in small units.
Within Kenya, the formal local food retail sector (supermarkets) is growing due to the rising household incomes. It is estimated that more than 40% of all Kenyans shop in supermarkets, the number of which is expected to increase. The growth of multinational quick-service restaurants (QSRs) is another key driver for demand in the cold chain industry.
Many QSRs are committed to expanding operations throughout the African continent including in the Kenyan market. The growth of QSRs is a clear sign of future demand for third-party logistics (3PLs) services as retailers look to maximize profits and reduce costs. As experts in logistics and distribution, 3PLs can implement checks and balances within the supply chain to assist farmers and processors better meet the demands of foreign and domestic markets.
Kenya is the largest and most dynamic economy in the East African community and serves as the business, logistics, and financial hub for the region with a relatively large and diversified private sector. Consumer demand along with access to energy and transportation infrastructure are critical factors to cold chain development.
There is a need for specific links within the cold chains from postharvest to retail including knowledge on scalable designs and technology. The cold chain opportunities in Kenya include pre-cooling, refrigerated storage, and refrigerated transport.
For more information contact Commercial Specialist Catherine.firstname.lastname@example.org