The Kenya Transporters Association (KTA) has issued a members’ advisory warning of escalating security risks in the transportation of high-value commodities, including coffee and cocoa, across Kenya’s logistics corridors.
According to the industry body, at least eight theft incidents involving coffee consignments have been reported over the past two months, highlighting what transporters describe as a coordinated criminal pattern targeting lucrative agricultural exports.
The association said the thefts are being carried out by organised and well-financed networks, exposing both cargo owners and transport operators to significant financial losses while raising safety concerns for truck drivers operating along regional routes.
In some cases, the incidents have resulted in serious harm and fatalities among drivers, underscoring the growing security challenges within East Africa’s cross-border freight ecosystem.
Liability disputes intensify operational risks
Beyond the direct loss of cargo, transporters say theft incidents have triggered complex liability disputes that compound financial pressure on operators.
KTA noted that when cargo goes missing while under customs control, trucks are frequently impounded by the Kenya Revenue Authority (KRA), with operators subsequently receiving demand notices for duties and taxes associated with the missing goods.
At the same time, cargo owners often pursue compensation claims against transporters and may withhold freight payments, creating dual financial exposure for logistics companies.
The association argues that this framework places an excessive burden on transporters, who are themselves victims of criminal activity.
Legal framework under scrutiny
Central to the dispute is the East African Community Customs Management Act (EACCMA) 2004, which assigns automatic liability to transporters for goods lost prior to formal investigations or legal determinations.
Transporters contend that the legislation does not adequately account for theft and force majeure scenarios, calling for policy dialogue to rebalance responsibilities across supply chain stakeholders.
Industry analysts say the issue highlights broader regulatory tensions within regional logistics markets, where liability allocation influences insurance costs, contract structures and investment decisions in freight capacity.
Risk mitigation measures proposed
In response to the surge in theft cases, KTA has issued minimum risk management guidelines aimed at improving cargo security and operational resilience.
The association recommends that cargo owners provide security escorts for high-value shipments and arrange comprehensive cargo insurance with documented confirmation to transporters.
Other proposed measures include strengthened contractual protection clauses, maintenance of adequate carriers’ liability insurance, avoidance of night driving where possible and use of secure, approved parking facilities.
KTA also encouraged convoy movement for high-value cargo shipments as an additional deterrent against criminal targeting.
Logistics experts note that while such measures may enhance security, they also increase operating costs that are unlikely to be absorbed under existing freight pricing structures.
Freight rates deemed commercially unsustainable
The advisory highlighted a widening mismatch between transport pricing and risk exposure, particularly for high-value agricultural commodities.
According to KTA, individual containers of coffee and cocoa can carry cargo valued between USD 80,000 and USD 150,000, yet prevailing freight rates remain as low as USD 900 per trip along key corridors.
The association described this pricing environment as commercially untenable given the operational, security and financial risks borne by transporters.
Rising insurance premiums, security expenditures and regulatory compliance costs have further eroded margins within the road freight sector, prompting calls for market recalibration.
Recommended minimum corridor pricing
To address the imbalance, KTA proposed revised minimum transport rates for the Kampala–Mombasa corridor, one of East Africa’s busiest trade routes linking Uganda’s export sector to Kenya’s seaport.
Under the recommendations, high-value cargo such as cocoa and coffee would attract a minimum rate of USD 2,000 per container, while lower-value commodities would be priced at USD 1,250.
The association suggested that rates for other regional routes be adjusted proportionately based on distance, cargo value and weight.
Market participants say adoption of the proposed pricing framework could reshape freight negotiations and potentially influence supply chain costs for exporters and importers.
Implications for regional trade and export competitiveness
Security disruptions and freight cost adjustments could carry broader implications for regional trade competitiveness, particularly for agricultural exports that rely on cost-efficient logistics to access international markets.
Coffee, tea and cocoa exporters may face higher inland transport costs if rate revisions are widely implemented, potentially affecting pricing strategies and margins.
However, industry stakeholders argue that improved security and sustainability within the transport sector ultimately support reliable supply chains, which are critical for maintaining buyer confidence in global commodity markets.
Financial institutions and insurers operating within trade finance ecosystems may also reassess risk models in response to rising cargo theft incidents, potentially influencing insurance pricing and financing terms.
Sector calls for collaborative solutions
KTA said it remains committed to promoting a fair and sustainable operating environment across regional corridors and emphasised the need for collaboration among transporters, cargo owners, insurers, regulators and security agencies.
The association indicated that dialogue with policymakers and industry stakeholders would be necessary to address liability concerns, strengthen corridor security and ensure balanced risk sharing within the logistics value chain.
As trade volumes through Kenya’s transport corridors continue to expand, the handling of cargo security and freight pricing dynamics is expected to remain a focal point for the region’s logistics and export sectors.
