Kenya's horticultural exporters could reduce transportation costs by 25% and carbon emissions by more than 90% through a planned €30 million (approximately US$35 million) cold-chain hub in Naivasha, supported by the Netherlands and the European Union.

The Northern Corridor Cool Logistics project will consolidate flowers, avocados, fruits and vegetables from Kenya, Uganda, Rwanda and the Democratic Republic of Congo before transporting them by rail to Mombasa for shipment to Europe.

Financial closure is targeted for 2027, with construction expected to begin in 2028.

The facility aims to reduce post-harvest losses, improve temperature-controlled logistics and coordinate shipments between growers, exporters and international buyers.

According to Kenya's Ministry of Agriculture, post-harvest losses account for 30-40% of agricultural output, partly due to inadequate infrastructure and handling during harvesting, transportation and storage.

The project is intended to address these losses through cold storage, consolidated shipments and rail connections. Its effectiveness will depend on electricity availability, temperature management, farm-to-hub transport and coordination across the supply chain.

Kenya's horticultural export earnings increased by 6.3% to approximately US$1.68 billion in 2025, compared with US$1.58 billion in 2024, according to the Kenya National Bureau of Statistics. Cut flowers generated approximately US$801 million, while fruits and vegetables contributed US$774 million.

However, horticultural export volumes declined from 468,438 tons in 2023 to 402,195 tons in 2024. Vegetable shipments fell from approximately 164,100 tons to 66,643 tons, while fruit exports increased from 188,102 tons to 225,415 tons.

TradeMark Africa and Invest International are working with Dutch and EU partners on the project, with complementary facilities planned in Uganda and Rwanda.

The Netherlands remains an export destination for Kenyan horticulture, importing approximately US$290 million worth of cut flowers and US$50.5 million worth of avocados in 2024.

The project's impact on growers will depend on access to services, collection arrangements, transport charges, and the costs of refrigerated logistics.

Source: www.nation.co.ke