Efficient trade logistics in the global economy is critical for countries to reap the benefits of globalization. With increased economic activity and rapid development of ICT, businesses are seeking to develop and organize strategic, efficient and world-wide production and distribution networks. Focus is placed on moving goods in a predictable, timely and cost effective way as a result of expanded supply chains and global production networks.

In a highly competitive world, the quality of logistics has a major bearing on a firm’s location decision, choice of suppliers and choice of consumer markets. However, high logistics costs and low levels of service provision characterize the East African region and Africa at large. These act as a huge barrier to trade and inhibit foreign direct investment and subsequently economic growth.

Kenya has entered a new decade with renewed momentum for strong and sustained growth with country strategies such as Vision 2030. To achieve and sustain high growth rates over the next decade, Kenya needs to address various logistics-related and trade facilitation issues, to achieve international standards, and meet the demands of a growing and increasingly integrated East African Community. The key problems include:

• Complex customs operations which are still essentially manual.
• Lengthy port operations charaterized by congestion, underinvestment, complex clearance procedures and lack of coordination by cargo interveners.
• The near collapse of the Kenya Railways Corporation has essentially left the freight market to the road sector.
• Complex transit and border crossing procedures affect movement of transit goods to landlocked destinations such as Uganda and Rwanda, which account for about 20% of the trade going through Mombasa.
• Backlog in the maintenance of road infrastructure on the Northern Corridor affects the relatively high traffic of about 600 trucks a day from the port of Mombasa
• Unnecessary and time consuming physical inspections at road blocks, customs stations and weighbridge operations that create major delays.

The 2007 World Bank Logistics Performance Index (LPI) which  summarizes the performance of countries in seven areas that capture the operating logistics environment, ranks Kenya at position 76 out of 150 countries with an LPI score of 2.52. These seven indexed areas are customs procedures, logistics costs (such as freight rates and warehouse costs), quality of infrastructure, ability to track and trace cargo, delivery timelines and the competence of the domestic logistics industry. The  indicators are given on a scale of 1 (Worst) to 5 (Best) with Singapore topping the rankings as a major global transport and logistics hub with a score of 4.19. It was closely followed by Netherlands and Germany at 4.18 and 4.10 respectively. African countries with a higher LPI than Kenya are South Africa (3.53), Tunisia (2.76), Mauritania (2.63) and Guinea and Sudan (2.71).

Faced with the above challenges in logistics and trade facilitation, individual cargo owners have often found it difficult to articulate their concerns to the relevant regulatory agencies and service providers. Kenya Shippers Council is a widely respected industry voice in East Africa, which commands the respect of political, regulatory and environmental organizations, and industry. KSC brings these different groups to the table to find real, workable solutions to logistics-related problems.

KSC's vision is to achieve logistical competitiveness in Eastern Africa by lobbying for appropriate policy changes through research-based advocacy research. We seek to attain this objective through the following key strategies:

1. Advocate for appropriate policies, regulations and administrative frameworks that facilitate competitive logistics in Eastern Africa
2. Become a knowledge powerhouse on logistics services in the Eastern African region by undertaking research that informs advocacy.
3. Develop a strong membership base that affirms KSC asthe preferred organization through which cargo owners, regulatory authorities and service providers engage in the EAC region.
4. Ensure KSC members enjoy efficient and competitive services for all modes of cargo movement.
5. Develop appropriate institutional capacities to ensure the sustainability of the Council.