Freighters lobby in Sh10b deal to digitise logistics sector

The Kenya International Freight and Warehousing Association (Kifwa) has signed a $80 million (Sh10.3 billion) partnership with Capital Pay International Ltd to develop a Centralised Clearing and Forwarding Management System (CCFMS).

The pact paves the way for the digitisation of Kenya’s logistics sector.

The partnership aims to modernise Kenya’s clearing and forwarding operations by integrating key trade stakeholders, including Kenya Revenue Authority (KRA), Kenya Ports Authority (KPA), KenTrade, cargo owners and logistics providers into one unified digital ecosystem. 

The initiative is expected to enhance efficiency, transparency and competitiveness across regional trade corridors.

“Digitisation is central to our strategic vision,  not only to speed up clearance processes but also to ensure professionalism, accountability, and compliance throughout the supply chain,” said Kifwa National Chair Fredrick Aloo.

The 20-year partnership will see an initial $10 million (Sh1.3 billion) investment channelled into system development and deployment, followed by $70 million (Sh9.1 billion) for long-term operationalisation and maintenance. 

The system will be rolled out in phases over 24 months, starting with design and pilot testing before national implementation and capacity building for over 1,200 licensed clearing agents. 

“This collaboration merges fintech innovation with logistics modernisation. By digitising key trade processes, we can reduce inefficiencies, promote compliance, and unlock new growth opportunities for Kenyan businesses engaged in regional and global trade,” said Capital Pay International chief executive Garang Mayom Malek.

The CCFMS will include modules for agent licensing, compliance tracking, real-time cargo monitoring, dispute resolution and professional training. It will also enable the local logistics sector to meet global trade facilitation standards under the World Trade Organisation, Trade Facilitation Agreement and the African Continental Free Trade Area framework.