Kenyan exporters have called on the government to address key structural challenges affecting the country’s competitiveness in global markets, citing high energy costs, expensive freight charges, trade barriers and rising packaging expenses as major constraints on business growth.
The concerns were raised during an Exporters’ Dinner hosted by the Ministry of Investments, Trade and Industry, where industry players highlighted the increasing cost pressures faced by manufacturers and exporters.
Exporters said high electricity tariffs, costly logistics, rising raw material prices and taxes on packaging materials are making it difficult for Kenyan products to compete with imports and goods from countries with lower production costs.
Managing Director of Sunripe Vertical Agro, Tiku Shah, identified rising energy costs as one of the biggest challenges affecting exporters, particularly those operating under fixed supply agreements.
He explained that businesses are often unable to adjust product prices when production costs increase because export contracts are usually agreed in advance.
Mr. Shah called for government support through targeted policies to help exporters remain competitive. He also urged increased investment in transport infrastructure, improved cargo systems and the development of a clear national export strategy.
He noted that high freight charges, unreliable logistics networks and limited cargo infrastructure continue to increase the cost of moving Kenyan products to international markets.
Chief Executive Officer of Utake Coffee, Mbula Musau, said reducing bureaucratic delays and streamlining export procedures would help lower business costs and improve efficiency across the export value chain.
Mr. Musau called for faster approvals, improved coordination among government agencies and simpler processes to enable businesses to access international markets more effectively.
Director of KETEPA, John Ngati, urged Kenya to move away from exporting raw materials and focus more on value-added products to increase earnings and strengthen the country’s global brand.
He said achieving this would require competitive financing, stable regulations, investment in innovation and a stronger national identity for Kenyan products in international markets.
Mr. Ngati also called for strategic overseas warehouses, reduced taxes on packaging materials and the removal of non-tariff barriers, noting that exporters sometimes face higher costs trading within Africa compared to shipping products to overseas destinations.
Other concerns raised by exporters included high input costs, weak global branding, expensive production materials and the need to eliminate duties on essential manufacturing inputs.
Responding to the concerns, Cabinet Secretary for Investments, Trade and Industry, Lee Kinyanjui, said the government is working through the Kenya Export Promotion and Branding Agency (KEPROBA) to strengthen the country’s export ecosystem and address industry challenges.
Mr. Kinyanjui said the government aims to translate exporters’ concerns into practical policy reforms that will improve the business environment.
He noted that Kenya has expanded its presence into more than 100 export markets across 14 priority value chains, adding that continued collaboration between government and industry stakeholders will be essential to achieving export-led growth.
The engagement comes as Kenya intensifies efforts to diversify export markets, promote value addition and increase foreign exchange earnings through industrial development.