Nairobi — Kenya must urgently harmonise county trucking levies and review restrictive cabotage rules to boost efficiency and competitiveness in the road transport sector, a new report by the Competition Authority of Kenya (CAK) and the World Bank warns.
The assessment shows that while Kenya performs relatively well compared to middle-income peers, its road transport industry remains constrained by fragmented county-level charges and strict limits on foreign haulers.
"Truckers continue to face excessive and duplicative levies across counties, increasing transaction costs and discouraging new entrants," the report notes. "Easing cabotage restrictions would reduce wasted capacity, lower costs, and strengthen Kenya's role as a regional transport hub."
Transporters face inconsistent licensing, parking, weighbridge and enforcement requirements imposed independently by counties, creating unpredictable compliance costs. Cess fees and special permits disproportionately affect operators moving goods such as extractives and agricultural commodities.
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Concerns raised in 2019 by the Kenya National Chamber of Commerce and Industry (KNCCI) remain unresolved, with recent cess hikes prompting the Kenya Transporters Association (KTA) to petition the President amid escalating costs and inconsistent enforcement.
The study further highlights that cabotage rules prevent foreign trucks from carrying domestic freight without additional permits or local partnerships. CAK's earlier findings show these restrictions force many foreign haulers to return empty even when cargo is available, pushing up freight costs across the region.
Despite provisions under the East African Community Treaty allowing limited exceptions, Kenya's rules remain among the most restrictive--undermining its position as a regional logistics hub.
The report calls for stronger coordination between NTSA and county governments to ensure levies are harmonised, transparent and predictable, alongside a comprehensive review of cabotage regulations to remove inefficiencies and support regional integration.
