EU allocates US$19. 6M to Kenya’s Northern Corridor for cold chain, trade facilitation

KENYA – The European Union has allocated €17 million (approx. US$19. 6 million) to support the transformation of the Northern Corridor, focusing on trade facilitation, transport efficiency, cold chain infrastructure for fresh products, and shifting freight from air to sea.

The Northern Corridor connects the Port of Mombasa with landlocked markets in East and Central Africa, including Kisangani, through a network of roads, railways, pipelines, inland waterways, border crossings, and inland container depots.

Cold Chain Development and Modal Shift

Funding will support the development of cold-chain infrastructure for fresh products, encourage a shift from air to sea freight, and simplify trade procedures along the corridor.

Cold chain systems will reduce post-harvest losses for horticultural products, while the shift from air to sea freight lowers logistics costs for less time-sensitive goods.

The initiative forms part of broader EU-Kenya cooperation on trade, digitalization, and investment.

Digital Infrastructure and Border Efficiency

Additional investments announced include €15 million (approx. US$17.2 million) to expand Kenya’s national fibre-optic network and €12 million (approx. US$13.8 million) to support the digitalization of land registration.

The EU and Kenya also discussed cooperation on digital infrastructure and logistics systems. Streamlined border procedures enabled by digital trade solutions will reduce transit delays for refrigerated cargo crossing into Uganda, Rwanda, Burundi, and South Sudan.

The corridor already encompasses key infrastructure, including the Port of Mombasa, road and rail networks, one-stop border posts, oil pipelines, inland waterways, and inland container depots.

Strategic Alignment with Global Gateway

The investments form part of the EU’s Global Gateway strategy, which aims to support economic integration and sustainable development through infrastructure improvements. The EU said the investments are intended to support trade flows, logistics services, and connectivity along one of East Africa’s busiest transport corridors.

For logistics investors and fresh-produce supply chains, the EU’s US$19 million investment in Kenya’s Northern Corridor targets two critical areas: cold-chain infrastructure for horticultural exports and digital trade solutions to streamline border procedures.

In addition, this multi-million-dollar injection, combined with the EU-Kenya Economic Partnership Agreement, supports the long-term growth of Kenya’s digital and physical transport sectors while transforming East African trade through the Global Gateway strategy.

Lastly, planned cold-chain investments and transport improvements along the Northern Corridor are expected to facilitate the movement of products between production regions, logistics hubs, and export gateways.

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