The East Africa logistics market driven by large-scale infrastructure programs across rail, port, and road corridors, rapid expansion of e-commerce and modern retail that is increasing last-mile and warehousing demand, and trade facilitation measures that are streamlining customs procedures and reducing border delays. East Africa logistics market size increased from USD 25.1 Billion in 2025 to USD 26.3 Billion in 2026. Looking forward, IMARC Group expects the market to reach USD 37.8 Billion by 2034, exhibiting a growth rate (CAGR) of 4.67% during 2026-2034. Rising transit cargo to landlocked markets such as Uganda, Rwanda, the Democratic Republic of Congo, and South Sudan is further strengthening regional demand for integrated logistics services. These dynamics determine the East Africa logistics market share.
How AI is Reshaping the Future of East Africa Logistics Market?
- AI-powered port and terminal planning tools are helping operators predict vessel arrivals, optimize berth and yard allocation, and reduce dwell times at gateways such as Mombasa and Dar es Salaam, where seasonal congestion has traditionally slowed cargo clearance.
- Machine learning models applied to customs and advance cargo declaration data are enabling faster risk profiling and clearance, supporting government efforts to move toward round-the-clock port operations and cut the time cargo spends waiting at the border.
- Route optimization and predictive analytics are allowing trucking and 3PL operators to plan loads across the Northern and Central Corridors, balance road and rail options, and reduce empty return trips on long-haul routes linking coastal ports with inland markets.
- AI-enabled demand forecasting and inventory placement are helping e-commerce, retail, and fast-moving consumer goods companies position stock closer to customers in Nairobi, Kampala, Kigali, and Addis Ababa, shortening delivery times and lowering warehousing costs.
- Computer vision and IoT-based cargo tracking are improving visibility across multi-country journeys, helping shippers monitor container location, condition, and border crossing status in real time, which reduces losses and improves reliability for high-value and temperature-sensitive goods.
Grab a sample PDF of this report: https://www.imarcgroup.com/east-africa-logistics-market/requestsample
Market Growth Factors
The East Africa logistics market is driven by sustained public and private investment in transport infrastructure that is reducing bottlenecks and lowering the cost of moving goods. Kenya’s Mombasa to Nairobi Standard Gauge Railway, which runs for 472 kilometers, has carried more than 50 million tonnes of cumulative freight and over 18.6 million passengers, demonstrating how modern rail can shift bulk cargo away from congested roads. The extension from Naivasha through Kisumu to Malaba, comprising a 264 kilometer section and a further 107 kilometer stretch, is bringing the Northern Corridor closer to the Ugandan border, while Uganda is working to mobilize about EUR 2.7 billion to build its own line toward Kampala. These projects fall under the East African Railway Master Plan, which aims to replace aging meter gauge networks across Kenya, Uganda, and Tanzania and extend links toward Rwanda and the Democratic Republic of Congo.
Port modernization and transit cargo growth are the second major driver. Mombasa, the region’s principal maritime gateway, currently handles about 2.1 million twenty-foot equivalent units and has recorded cargo throughput of 45.45 million metric tonnes in a single year. Dar es Salaam is strengthening its position as a competing gateway: DP World operates Terminal 1 under a 30-year concession, has cut vessel discharge times from more than 300 hours to under 28 hours, and has committed USD 250 million to upgrades in the first five years. Container traffic at the port reached 110,199 twenty-foot equivalent units in the first quarter of 2026, up 92% year on year, while transit cargo to landlocked countries rose 17% to 14.61 million tonnes. Competition between corridors is pushing both Kenya and Tanzania to improve efficiency, which benefits shippers and logistics service providers alike.
Trade facilitation, e-commerce growth, and diversification of access routes are reinforcing demand further. Kenya has introduced an advance cargo declaration platform that attracted more than 1,000 applications soon after launch, and the Kenya Revenue Authority and Kenya Ports Authority have agreed to move toward 24/7 operations at Mombasa while using inland container depots and container freight stations in Nairobi and Mombasa to decongest the port. Rwanda is planning a logistics hub at the Mai Mahiu Special Economic Zone in Naivasha to move Mombasa cargo by rail, and the Democratic Republic of Congo has secured 60 hectares in Dar es Salaam for a dry port. At the same time, Ethiopia, which sends close to 97 percent of its trade through Djibouti and pays about USD 2 billion annually in port fees and demurrage, is exploring Kenya’s Lamu Port, a facility with three completed berths worth about USD 400 million, as part of the Lamu Port-South Sudan-Ethiopia Transport Corridor. These moves are widening the addressable market for warehousing, freight forwarding, inland depots, and cross-border trucking.
Market Segmentation
Model Type Insights:
- 2 PL
- 3 PL
- 4 PL
Transportation Mode Insights:
- Roadways
- Seaways
- Railways
- Airways
End Use Insights:
- Manufacturing
- Consumer Goods
- Retail
- Food and Beverages
- IT Hardware
- Healthcare
- Chemicals
- Construction
- Automotive
- Telecom
- Oil and Gas
- Others
Country Insights:
- Ethiopia
- Kenya
- Tanzania
- Uganda
- Sudan
- Rwanda
- Others
Recent Development & News
- October 2026: Rwanda announced plans to establish a logistics hub at Kenya’s Mai Mahiu Special Economic Zone in Naivasha, strengthening its access to the Port of Mombasa through the Standard Gauge Railway and the Northern Corridor. In the same month, data showed Dar es Salaam transit cargo to landlocked markets rising 17% to 14.61 million tonnes, while Uganda faced a financing test to secure about EUR 2.7 billion for its Standard Gauge Railway.
- August 2026: The Kenya Revenue Authority and Kenya Ports Authority agreed to harmonize staff shifts and introduce 24/7 operations at the Port of Mombasa to address congestion, while an advance cargo declaration platform rolled out in the same month received more than 1,000 applications. Separately, DP World awarded a contract to EDECS Group to redevelop seven operational yards covering 90,000 square meters at Terminal 1 of Dar es Salaam Port, and the World Bank signaled interest in financing a second phase of the port upgrade after the first phase, backed by a USD 345 million credit, reached 85% completion.
- July 2026: Cumulative freight volume on Kenya’s Mombasa to Nairobi Standard Gauge Railway exceeded 50 million tonnes, according to the operator, reflecting its growing role in moving cargo between the port and inland markets.
- May 2026: A container vessel berthed at Kenya’s Lamu Port, a facility that had previously handled fewer than 75,000 tonnes in a full year, signaling early momentum for the Lamu Port-South Sudan-Ethiopia Transport Corridor as an alternative gateway for the Horn of Africa.
- March 2026: Kenya broke ground on the Naivasha to Kisumu Standard Gauge Railway extension at Suswa, a key step toward linking the port of Mombasa with the Ugandan border by modern rail.
- February 2026: The Islamic Development Bank agreed to provide EUR 410 million toward the Malaba to Kampala Standard Gauge Railway in Uganda, supporting cross-border rail connectivity on the Northern Corridor.
- February 2025: Kenya and Ethiopia agreed to boost trade through Lamu Port as part of efforts to diversify Ethiopia’s trade routes beyond Djibouti.
- May 2024: Ethiopia received its first shipment of 60,000 tonnes of fertilizer imported through the Port of Lamu, while Kenya and Uganda agreed to extend the Standard Gauge Railway toward Kampala and the Democratic Republic of Congo.
- April 2024: DP World began operating Terminal 1 at the Port of Dar es Salaam under a 30-year concession, launching a modernization program aimed at faster vessel turnaround and higher throughput.
If you require any specific information that is not covered currently within the scope of the report, we will provide the same as a part of the customization.
About Us
IMARC Group is a global management consulting firm that helps the world’s most ambitious changemakers to create a lasting impact. The company provide a comprehensive suite of market entry and expansion services. IMARC offerings include thorough market assessment, feasibility studies, company incorporation assistance, factory setup support, regulatory approvals and licensing navigation, branding, marketing and sales strategies, competitive landscape and benchmarking analyses, pricing and cost research, and procurement research.
Contact Us
IMARC Group,
134 N 4th St. Brooklyn, NY 11249, USA,
Email: sales@imarcgroup.com,
Tel No: (D) +91 120 433 0800,
United States: +1-201971-6302
