Kenya’s airfreight industry is poised for growth as part of the booming global airfreight services market, which is projected to expand from $223.1 billion in 2023 to $269.1 billion by 2030.
With a compound annual growth rate (CAGR) of 2.7%, Kenya’s strategic location and strong agricultural exports, particularly flowers and fresh produce, are key drivers in its contribution to this dynamic sector.
According to businessdailyafrica.com, the growth is driven by several factors, including the rapid expansion of e-commerce and the increasing demand for fast, global shipping solutions.
The recent cargo capacity crisis at Jomo Kenyatta International Airport (JKIA) that was caused by lack of outbound capacity to accommodate Kenya’s horticultural exports is a clear manifestation of the dynamism within global supply chains and unpredictable multi-modal shifts in the demand for transportation.
New markets such as India, Southeast Asia, and Eastern Europe are growing sources of outbound tourism. Indians’ travel spending is expected to grow nine percent per year between now and 2030 whilst growth projections for Southeast Asians and Eastern Europeans are both envisage to hit seven percent.
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Kenya’s agro-export should hence target such new routes since regions with higher tourist numbers tend to have higher food and leisure consumption indices.
The reliance on airfreight for the transportation of medical supplies and pharmaceuticals, particularly during the Covid-19 pandemic, underscored the importance of aviation services in supporting global health and safety initiatives.
Further growth is expected in the emerging markets in Asia-Pacific and Latin America, where expanding trade and logistics infrastructure will offer significant growth opportunities for airfreight service providers.
As global supply chains become more complex and e-commerce continues to expand, the need for expedited shipping has driven increased demand for airfreight.
Whilst there is an emerging push for the uptake of seafreight for the Kenya’s agro-exports, the highly unpredictable trade-lanes on the seafront still pose a gargantuan challenge for perishable products. The route-to-market by air is hence the surest bet.
Key industries such as pharmaceuticals, electronics, and high-value goods rely heavily on airfreight for the rapid movement of time-sensitive products.
The demand by freighters to land in Eldoret International Airport to off-load these products will rise but due to infrastructure constraints, shipments destined for the Kenyan market will be landed in Kilimanjaro International Airport in Tanzania and then road-freighted into Kenya. This is a crude form of “e-commerce”.
Automation and digitisation have significantly improved cargo tracking and logistics management, allowing for real-time updates and greater transparency throughout the shipping process. This will be the competitive advantage imperative that will have to be adopted for survival in the industry.
The use of blockchain technology is also gaining traction globally, providing enhanced security and traceability for high-value shipments.
These technological advancements are not only enhancing the performance of airfreight services but are also helping companies meet growing environmental regulations aimed at reducing the carbon footprint of air transportation.
It will be a requirement for businesses to be part of a reputable blockchain to join higher value chains that dominate global supply chains.
This will be an insane paradigm-shift from quantitative to qualitative trading practices for most Kenyan businesses that are active in the international trading scene.
The indispensable rise of e-commerce will lead to an increase in smaller, more frequent shipments, requiring airfreight companies to adapt their operations to accommodate high-volume, low-weight express service parcels.
This will soon include direct demand for smaller parcels of flower bouquets and fresh produce salads by consumers abroad with a farm-to-door service.
Businesses will focus on meeting the expectations of same day and next day deliveries, and airfreight will become the most critical component of last-mile logistics for international shipments.
