NAIROBI, Kenya, July 9 – Exporters have urged the government to address structural challenges undermining Kenya’s export competitiveness, warning that high energy prices, costly freight, trade barriers and expensive packaging materials are eroding the country’s position in international markets.
Speaking during an Exporters’ Dinner hosted by the Ministry of Investments, Trade and Industry, industry leaders said manufacturers continue to grapple with high electricity costs, expensive freight charges, rising raw material prices and taxes on packaging materials, making it increasingly difficult for locally produced goods to compete with imports and products from countries with lower production costs.
Sunripe Vertical Agro Managing Director Tiku Shah said escalating energy costs remain one of the biggest challenges facing exporters, particularly those operating under fixed supply contracts.
“If power costs go up, we can’t simply increase prices because most exporters are locked into supply contracts. We therefore need government support through the right policy instruments to remain competitive.”
Shah said inefficient logistics continue to inflate the cost of doing business, calling for greater investment in transport infrastructure and a coherent export strategy.
“We need efficient cargo transport, a functioning national airline and a clear export strategy. Without lowering logistics costs, getting Kenyan products to market competitively remains a major challenge.”
He noted that freight charges remain significantly higher than in competing markets, with exporters increasingly struggling to absorb the cost of expensive shipping, unreliable logistics and the lack of dedicated cargo infrastructure.
Shah also urged the government to establish structured consultations with experienced exporters to develop market-specific export strategies and remove bottlenecks across the supply chain.
Utake Coffee Chief Executive Officer Mbula Musau said reducing bureaucratic delays would significantly improve the competitiveness of Kenyan businesses in global markets.
According to Musau, lengthy administrative procedures continue to slow exports and raise operating costs for businesses seeking to access international markets.
He said faster approvals, better coordination among government agencies and simplified export procedures would lower the cost of doing business while improving efficiency across the export value chain.
KETEPA Director John Ngati said Kenya should shift its focus from exporting raw materials to value-added products, arguing that this would increase earnings for producers while strengthening the country’s global brand.
“Our greatest opportunity lies in exporting premium value-added products under Kenyan brands. That requires competitive financing, stable regulations and stronger investment in innovation.”
Ngati said Kenya also needs a stronger national brand to improve the visibility of its products abroad.
“We also need a unified Kenyan identity that strengthens the authenticity and visibility of our products globally while reducing taxes on packaging materials to improve competitiveness.”
He further called for investment in strategic overseas warehouses, lower taxes on packaging materials and the removal of non-tariff barriers, noting that exporters often find it cheaper and faster to ship goods to distant international markets than to neighbouring African countries.
Other concerns raised by exporters included the high cost of raw materials, rising energy prices, weak global branding, non-tariff trade barriers and the need to zero-rate duties on key production inputs to improve competitiveness.
Responding to the concerns, Trade and Investments Cabinet Secretary 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.
“The appetite for Kenyan products abroad is real, and through KEPROBA we are working to ensure we match that demand with consistency, compliance and faster action.”
Kinyanjui said the ministry wants engagements with exporters to result in practical policy reforms.
“We want this engagement to produce clear, actionable recommendations that will inform institutional priorities because feedback from exporters must translate into action.”
He noted that Kenya has expanded its presence to more than 100 export markets across 14 priority value chains, demonstrating the gains that can be achieved through closer collaboration between the government and the private sector.
Kinyanjui added that the ministry will continue engaging exporters to ensure policy interventions respond to industry needs and support Kenya’s export-led growth agenda.
The calls come as Kenya seeks to diversify its export markets, increase value addition and boost foreign exchange earnings under its industrialisation strategy.
