High cost of goods blamed on poor logistics strategies


African states have been urged to invest in market information systems to assist farmers’ access ready markets for their produce.

Poor logistics strategy is one of the major contributors of the high commodity prices especially for basic products such as milk.

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Africa Logistics Property Chief Executive Richard Hough says at least 63 percent of logistics companies in Kenya do not have a logistics strategy which makes them incur significant supply chain loses.

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Kenya is ranked position 68 regionally on the World Bank’s Logistics Performance Index with an LPI score of 2.81. Rwanda is the best ranked country in the East African region at position 57 and an LPI score of 2.97.

To boost Kenya’s performance, Africa Logistics Property Chief Executive is calling for favorable policies.

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He says there is also need to address infrastructural, and IT systems challenges to revolutionize the industry.

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Hough says, prices of basic commodities are on high in Kenya compared to the World’s best logistics performers such as Germany as a result of a combination of average infrastructural development, government policies, and the business environment.

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Operationalization of the Inland Container Depot has created warehousing opportunities in Nairobi for containers ferried via the Standard Gauge Railway from the Port of Mombasa to Nairobi.


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