The Kenya International Freight and Warehousing Association (KIFWA) has entered into a landmark USD 80 million (KSh 12 billion) partnership with Capital Pay International Limited to develop a Centralized Clearing and Forwarding Management System (CCFMS) — a transformative move aimed at digitizing and modernizing Kenya’s logistics and trade facilitation ecosystem.
The agreement, announced in Nairobi, is one of the six strategic pillars under KIFWA’s newly unveiled 2025–2030 Strategic Plan, and aligns with the government’s Vision 2030 and African Continental Free Trade Area (AfCFTA) frameworks for enhancing efficiency, transparency, and competitiveness across Africa’s trade corridors.
A Digital Transformation for Kenya’s Logistics Industry
Under the new partnership, KIFWA and Capital Pay will create a unified digital platform integrating key players in the logistics and trade ecosystem — including the Kenya Revenue Authority (KRA), Kenya Ports Authority (KPA), KenTrade, cargo owners, and freight forwarders.
The Centralized Clearing and Forwarding Management System (CCFMS) will centralize critical operations such as agent licensing, compliance monitoring, customs clearance, and cargo tracking — enabling real-time visibility across the supply chain.
According to Mr. Fredrick Aloo, National Chair of KIFWA, the initiative represents a turning point in how Kenya manages trade and logistics.
“This partnership is a bold step toward a smarter, more efficient logistics ecosystem,” said Mr. Aloo.
“Digitization is central to our strategic vision, not only to speed up clearance processes but also to ensure professionalism, accountability, and compliance throughout the supply chain.”
USD 80 Million Investment to Build a 20-Year Digital Infrastructure
The 20-year partnership will be implemented in stages, beginning with an initial USD 10 million investment for system development and pilot deployment, followed by USD 70 million earmarked for long-term operationalization, system maintenance, and scaling.
The rollout will take place over 24 months, beginning with system design, pilot testing, and stakeholder training, before moving to national implementation. Once complete, the system will support over 1,200 licensed clearing and forwarding agents across Kenya.
Fintech Meets Freight: Capital Pay’s Role
Capital Pay International, a digital financial solutions company, will provide the fintech and systems architecture backbone for the new logistics platform.
Mr. Garang Mayom Malek, CEO of Capital Pay International, said the collaboration merges financial technology innovation with trade digitization to enhance efficiency and compliance.
“This collaboration merges fintech innovation with logistics modernization,” said Mr. Malek.
“By digitizing key trade processes, we can reduce inefficiencies, promote compliance, and unlock new growth opportunities for Kenyan businesses engaged in regional and global trade.”
The system is designed to simplify payments, automate documentation, and create audit trails across the logistics value chain — enhancing transparency and reducing costs associated with manual processing.
Supporting Trade Facilitation and Regional Integration
The CCFMS will be fully aligned with global and regional trade facilitation standards, including the World Trade Organization (WTO) Trade Facilitation Agreement (TFA) and the African Continental Free Trade Area (AfCFTA) framework.
Its core modules will include:
- Agent Licensing & Accreditation – Streamlining registration and compliance processes.
- Compliance & Audit Tracking – Enabling continuous oversight of licensed operators.
- Real-Time Cargo Monitoring – Offering end-to-end visibility for all consignments.
- Dispute Resolution Mechanisms – Simplifying claims and mediation.
- Continuous Professional Training (CPT) – Enhancing skills and capacity of logistics professionals.
By integrating these components, KIFWA aims to reduce turnaround times, minimize fraud and duplication, and improve cross-agency coordination across border points and ports.
Driving Professionalism and Accountability
Mr. Aloo emphasized that the initiative is part of KIFWA’s broader mission to professionalize Kenya’s logistics industry — a sector that handles billions in trade volumes annually but has long grappled with inefficiencies and fragmented systems.
“Our focus is transformation through collaboration,” he said.
“By working with Capital Pay, we’re not only modernizing systems, but we’re also building the digital backbone of Kenya’s logistics future.”
The project also aims to raise operational standards, curb corruption, and position KIFWA as a model for other African freight and logistics associations seeking to digitize operations.
Global Benchmarks and Regional Positioning
The partnership draws lessons from international logistics hubs such as the Netherlands, Germany, and Rwanda, where centralized logistics systems have enhanced transparency and competitiveness.
With this initiative, Kenya is set to become a regional leader in technology-driven trade facilitation, strengthening its position as a key logistics hub for the East African Community (EAC) and COMESA regions.
Strategic Implications for Kenya’s Economy
Analysts see the KIFWA–Capital Pay partnership as a strategic boost to Kenya’s ambitions of becoming a regional logistics gateway.
Digitizing freight operations is expected to:
- Reduce operational costs and inefficiencies by up to 30%;
- Improve cargo clearance times at ports and border points;
- Enhance data-driven policy formulation and compliance oversight; and
- Support Kenya’s competitiveness under AfCFTA, enabling smoother trade flows across African borders.
The system also aligns with the National Trade Facilitation Committee’s push for full electronic data exchange and process automation by 2030.
About KIFWA
The Kenya International Freight and Warehousing Association (KIFWA) is the umbrella body representing over 1,200 licensed clearing, forwarding, and logistics companies in Kenya. The association advocates for professionalism, regulatory compliance, and digital transformation in Kenya’s logistics industry.
About Capital Pay International
Capital Pay International Limited is a fintech firm specializing in digital payment systems, platform integration, and data-driven financial solutions for the logistics and trade sectors. The company focuses on building digital infrastructure that enhances transparency, compliance, and cross-border efficiency.
