This has been attributed to various factors, including a growing interest in Kenya as a business hub. Kenya’s unique geographical position has made it a key transit point for cargo destined for the local market as well as into the region. Today, the growth of SMEs in Kenya has exploded and contributed to an increase in logistics services such as warehousing. In addition, a number of importers today have turned to the utilisation of leased factors of production, which are cheaper for retailers, as opposed to the importer absorbing the cost and risk of running a non-core operation such as logistics while running the enterprise. Siginon Global Logistics has invested heavily in warehousing to meet customer demands and currently boasts nearly 300,000 square feet of warehouse capacity in its Nairobi and Mombasa operations.
Globally, Amazon.com has disrupted the logistics industry, with the adoption of technology (such as robots) and innovation to run its processes.
Inasmuch as the Kenyan market has yet to embrace these particular innovations, a number of efforts have been made by the various logistics players to incorporate technology to boost service delivery. Winstone Akweyu, Operations Manager at Siginon Global Logistics, avers that there are a number of opportunities for automating warehouse operations through automation of storage, compact picking, zone picking and integrated picking, as well as warehouse and AGV systems. Although these systems require high capital investments, the returns on business and customer satisfaction are equally high in the long run.
