NAIROBI, Kenya, July 8 – Kenya is positioning itself as a regional processing and logistics hub for minerals and trade under a renewed push to deepen economic integration across the Horn of Africa, Trade and Industry Cabinet Secretary Lee Kinyanjui has said.
Speaking after receiving a briefing following the 28th Horn of Africa Initiative Ministerial Meeting, Kinyanjui said the government wants to move beyond simply facilitating the movement of raw materials by attracting investments in mineral processing, logistics and transport infrastructure to create jobs and enhance the country’s competitiveness.
“We think there will be wealth creation, and we will need logistics, good roads and rail to ensure that transport costs remain competitive.”
“Kenya would want to have the minerals for the entire region processed here in Mombasa, Lamu and some of these areas, and we are engaging partners on how we can work together.”
The remarks signal Kenya’s broader strategy of leveraging its transport infrastructure to serve neighboring countries while capturing more value from regional supply chains through local processing of minerals before export.
Kinyanjui said investments in infrastructure should increasingly be viewed as enablers of trade rather than standalone projects, arguing that roads, ports and railways only deliver meaningful economic returns when they lower transport costs, expand exports and support employment creation.
He pointed to the strategic importance of the Lamu Port-South Sudan-Ethiopia Transport (LAPSSET) Corridor, saying it is expected to become an increasingly critical trade route linking Kenya with Ethiopia, South Sudan and Uganda while enhancing the country’s role in regional logistics.
According to Kinyanjui, disruptions affecting traditional global shipping routes have strengthened the case for Kenya to position Lamu as a key transshipment hub where cargo arriving from Asia can be redistributed across the continent.
He added that the government is also working to eliminate delays at border points by reducing cargo clearance times and improving cross-border movement under regional trade facilitation initiatives.
Despite progress in regional integration, Kinyanjui noted that trade among African countries remains low at about 17 percent of total commerce, underscoring the need to address structural bottlenecks that continue to limit intra-African trade.
He said improving transport networks, harmonizing border procedures and expanding digital trade will be central to unlocking greater commercial activity across the region as internet connectivity and mobile penetration continue to rise.
Kenya will also participate in the upcoming Horn of Africa discussions in Addis Ababa, where it plans to advance its proposals on regional logistics, mineral value addition and trade integration as governments seek to reshape supply chains amid shifting global trade dynamics.
