Kenya Association of Manufacturers ropes in online logistics firm Sendy to ease burden on manufacturers by slashing transport costs

Phyllis Wakiaga, CEO, Kenya Association of Manufacturers (KAM). (Citizen TV)
  • KAM has signed a deal with online logistics firm Sendy which will see firms slash their transport costs by relying on technology.
  • At the moment, manufacturers shoulder high costs of transport and have to foot a flat rate per truck regardless of their size of cargo.
  • The partnership is meant to benefit manufacturers doing big load cargo deliveries across the country.

Kenyan local manufacturers have heaved a sigh of relief after the Kenya Association of Manufacturers (KAM) moved to ease the burden of transporting goods into and out of Nairobi.

KAM has signed a deal with online logistics firm Sendy which will see firms slash their transport costs by relying on technology.

The partnership is meant to benefit manufacturers doing big load cargo deliveries across the country.

“Part of KAM’s goal to our members is to enhance market access for products, locally and globally, and to grow exports by 33 percent by 2019. By partnering with Sendy to offer logistics education and knowledge to our members, we believe it will add value and help the members reduce their logistics costs,” KAM boss Phyllis Wakiaga said at an event held at the Nairobi Serena Hotel yesterday.

At the moment, manufacturers shoulder high costs of transport and have to foot a flat rate per truck regardless of their size of cargo and distance going as high as Sh60,000 ($600) per truck countrywide.

This has seen small-scale traders team up to share the cost of transporting goods across the country and neighbouring states.

However, under the new deal, manufacturers can opt to use pick-ups, vans and trucks from Sendy’s platform at pocket friendly prices.

Customers will pay Sh1,500 ($15) for up to five kilometres covered on the logistics firm’s platform while a three-tonne truck costs Sh5,900 ($59), Sh6,500 ($65) for five tonnes and Sh7,600 ($76) for deliveries by a 10 -tonne truck for up to 20 kilometres.

Sendy will also train more than 200 manufacturers on how to cut down their logistics costs through the use of technology under the new deal with KAM.

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