Why Kenya Needs to Own and Operate Merchant Fleet: A Strategic Imperative

By Andrew Mwangura

Email, thecoastnewspaper@gmail.com

In an era where global trade is the lifeblood of economic growth, it is both puzzling and concerning that Kenya, a coastal nation with a strategic location along the Indian Ocean, does not own and operate a national merchant fleet. 

Meanwhile, Ethiopia, a landlocked country, owns and operates 18 merchant ships and plans to acquire six more to expand its trade fleet.

This stark contrast raises critical questions about Kenya’s maritime strategy and its commitment to leveraging its geographic advantage for economic gain.

It is high time Kenya invests in a national shipping line to secure its trade interests, reduce dependency on foreign vessels, and bolster its economic sovereignty.

Ethiopian Paradox

Ethiopia’s decision to own and operate a merchant fleet, despite being landlocked, is a testament to the importance of controlling one’s trade logistics.

By owning its ships, Ethiopia has reduced its reliance on foreign shipping lines, gained greater control over its import and export costs, and ensured the timely movement of goods. 

This strategic move has not only enhanced Ethiopia’s trade efficiency, but also strengthened its position in regional and global markets.

If a landlocked country can recognize the value of a merchant fleet, why can’t Kenya, with its 1,420-kilometer coastline and access to key shipping routes?

A Wasted Advantage

Kenya’s geographic position is a natural gift. The Port of Mombasa serves as a gateway to East and Central Africa, handling millions of tons of cargo annually. 

However, the absence of a national shipping line means that Kenya relies heavily on foreign-owned vessels to transport its goods.

This reliance comes at a cost: high freight charges, vulnerability to global shipping market fluctuations, and limited control over shipping schedules.

By owning and operating a merchant fleet, Kenya could reduce these costs, improve trade efficiency, and ensure that its exports and imports are prioritized.

Economic Sovereignty

A national shipping line would not only enhance Kenya’s economic sovereignty, but also create thousands of jobs in maritime logistics, ship maintenance, and related industries.

The maritime sector has the potential to become a significant contributor to Kenya’s GDP, yet this potential remains untapped.

By investing in a merchant fleet, Kenya could train and employ its citizens in high-skilled maritime professions, reducing unemployment and fostering economic growth.

Boosting Exports

Kenya’s trade deficit has been a persistent challenge, with imports far exceeding exports. A national shipping line could help address this imbalance by lowering the cost of exporting Kenyan goods.

Currently, high shipping costs make Kenyan products less competitive in international markets. 

By owning its fleet, Kenya could negotiate better freight rates, streamline logistics, and ensure that its agricultural and manufactured goods reach global markets more efficiently. This would not only boost exports but also enhance Kenya’s trade balance.

Regional Trade and Integration

As a member of the East African Community (EAC) and the African Continental Free Trade Area (AfCFTA), Kenya has a vested interest in promoting regional trade. A national shipping line could play a pivotal role in facilitating intra-African trade by offering reliable and cost-effective shipping services to neighboring countries. 

This would position Kenya as a regional trade hub and strengthen its leadership in African economic integration.

Global Examples

Countries like South Africa, Morocco, and Egypt have long recognized the importance of owning and operating national shipping lines.

These countries have used their fleets to secure their trade interests, reduce dependency on foreign carriers, and enhance their economic resilience.

Kenya can draw valuable lessons from these examples and take proactive steps to establish its own merchant fleet.

Call to Action

The Ethiopian example underscores the importance of strategic foresight in trade logistics. Kenya, with its coastal advantage, has no excuse for lagging behind.

The government must prioritize the establishment of a national shipping line as part of its broader economic strategy.

This will require significant investment, but the long-term benefits—economic sovereignty, job creation, reduced trade deficits, and enhanced regional trade—far outweigh the costs.

Kenya’s maritime potential is too great to ignore. It is time for the country to take control of its trade destiny by owning and operating a merchant fleet.

The question is not whether Kenya can afford to do this, but whether it can afford not to.