Nairobi Manufacturers Report Higher Output on Efficient Logistics
Manufacturers in Nairobi are reporting a significant boost in production output and operational efficiency, attributing the positive trend to recent improvements in the city’s logistics and transport infrastructure. According to a new survey by the Kenya Association of Manufacturers (KAM), over 65% of industrial firms in the Industrial Area and surrounding zones have recorded productivity gains of 15-30% in the last quarter, directly linked to reduced delivery times, fewer supply chain disruptions, and lower transport costs. This uptick follows the county government’s targeted upgrades to key industrial roads and the adoption of smarter logistics solutions by private sector players.
The enhanced efficiency stems from multiple factors, including the completion of critical road repairs on Likoni Road and Enterprise Road, which has drastically cut down the time taken to move goods to and from the Inland Container Depot in Embakasi. Furthermore, manufacturers are increasingly leveraging technology, using local logistics platforms that employ AI for route optimization and real-time tracking. The difference is palpable. Where a trip to the port would take four hours, it now takes two. This reliability means we can run leaner inventories and respond faster to orders, which directly increases our throughput, explained Anita Sharma, Operations Director at a leading pharmaceutical manufacturer in Industrial Area.
The Kenya Association of Manufacturers has confirmed the sector-wide benefits, noting that the improved logistics environment is enhancing Nairobi’s competitiveness as a manufacturing hub. The correlation between infrastructure and industrial output has never been clearer. Reduced transit times have not only cut costs but also minimized product damage during transportation, leading to higher quality delivery and increased customer satisfaction, said KAM Chair, Flora Mutahi. The positive sentiment is also reflected in the latest Purchasing Managers’ Index (PMI) for Nairobi, which has shown sustained expansion in the manufacturing sector for three consecutive months.
The long-term sustainability of this growth hinges on maintaining the infrastructure gains and continuing to integrate technology across the supply chain. Industry leaders are urging the county and national governments to maintain the momentum by completing the planned upgrades on all designated industrial corridors. This is a welcome development, but it must be sustained. Consistent, efficient logistics are the bedrock of a competitive manufacturing sector. We hope this marks a permanent shift towards a more supportive operating environment for makers in Nairobi, Ms. Mutahi added. With the tangible benefits now being realized, the focus is on ensuring that these infrastructure and efficiency improvements are scaled and maintained to support long-term industrial growth.