Parliamentary committee seeks to solve conflicts in logistics sector

Kenya Transporters Association Chairman Newton Wang'ou (center) flanked by members Sammy Muhanji (left) and George Ngugi before the National Assembly's Trade Committee on March 27, 2024. [Elvis Ogina, Standard]

The National Assembly Committee on Trade, Industry and Cooperatives has embarked on a move aimed at solving a brewing conflict between multinationals and local investors in the transport and logistics sector.

Led by Chairperson James Gakuya, the committee has resolved to engage representatives of multinational companies operating in the country as it seeks to address concerns about unfair business practices by the multinational firms.

According to Kenya Transport Association Chairman Newton Wang'oo, the international firms operating in the country outsource logistics and warehousing services abroad, hindering the growth and competitiveness of local companies.

Wang'oo in his submission before the House Team proposed that 60 per cent of transport and logistics work in the country should be reserved for local enterprises.

In his response, Gakuya while stressing the importance of maintaining an open market, acknowledged the validity of KTA's concerns, emphasizing the necessity to safeguard local enterprises from unfair practices.

"There is every need to protect Kenyan business people in the logistics sector. However, we can't lock out multinationals from the sector," said Gakuya.

During the meeting, the Vice Chairperson of the committee Marianne Kitany (Aldai MP) urged the association's leadership to ensure integrity and professionalism within the industry.

The legislators noted that many Kenyans prefer dealing with multinational players in the logistics sector due to perceived issues with trust and reliability among local companies.