Kenya’s freight industry is staring at a possible power shift that could upend decades of foreign dominance and revive struggling local businesses.

A high-stakes investigation by the Competition Authority of Kenya (CAK) into suspected collusion, market abuse, and vertical integration by multinational shipping and logistics firms has set the stage for a battle over who moves cargo in and out of the country. 

For the first time in years, local transporters see a genuine shot at reclaiming market share.  

Despite owning nine out of every 10 trucks on Kenyan roads, domestic firms handle less than 30 per cent of the business flowing through Mombasa Port.

The rest is controlled by a tight cartel of foreign firms who not only sail the cargo in but also clear, forward, warehouse, and truck it inland—leaving little room for anyone else. 

Freight shipping services 

“The authority initiated a screening into the conduct of the ocean freight shipping services, clearing and forwarding services and provision of trucking services in Kenya and multinational corporations such as Bamburi Cement, East Africa Breweries and British American Tobacco in order to establish whether or not the business practises of the players violate the provisions of the Act,” CAK said in a statement. 

At the centre of the storm are global shipping giants like Maersk, CMA CGM, MSC, and PIL, accused of locking out local competition through exclusive deals and integrated operations.

The allegations, filed by the Kenya Transporters Association (KTA) and Kenya International Freight and Warehousing Association (KIFWA), suggest that foreign players have built closed ecosystems where contracts, clients, and profits rarely leave their orbit. 

The investigation, ordered after pressure from Parliament, could be a tipping point for local investors who have spent years watching the market consolidate around multinationals.  

If the CAK acts on evidence of abuse—such as identical Terminal Handling Charges ($99 for 20ft containers), depot fees ($70), and cleaning costs ($35)—it could dismantle price structures that have favoured large players and drained competitiveness from local firms. 

Truck owners in regions like Mlolongo, Mariakani, and Eldoret have long complained of being used only when foreign-affiliated firms face capacity shortages.  

That could change if the probe leads to measures curbing exclusive contracts and unbundling logistics services.

Local firms would not only gain fairer access to tenders but also stronger bargaining power and pricing freedom. 

Shipping multinationals, meanwhile, stand to lose their grip. Companies like Maersk and CMA CGM could be forced to separate their clearing and trucking divisions from their core ocean freight operations.

That would cut into their economies of scale and potentially drive up their operating costs, creating a more level field for competitors. 

The probe has also put non-shipping multinationals under the microscope. Firms like Bamburi Cement, EABL, and BAT are being investigated for awarding logistics contracts in ways that may reinforce anti-competitive behaviour.  

These corporations, some of Kenya’s biggest importers and exporters, could face regulatory pressure to revise procurement frameworks that systematically exclude local transporters. 

The consequences go beyond individual companies. If the CAK concludes that there is sufficient evidence of collusion or market abuse, it may issue orders to restructure market practices, remove barriers to entry, and prohibit restrictive contracts.  

That would reset the rules of engagement and could usher in a more diverse and competitive logistics market. 

Structural imbalances  

But the stakes are high. In 2023, Maersk alone controlled 35 per cent of container cargo passing through Mombasa Port, with CMA CGM close behind at 25 per cent.  

These two companies, alongside others, control more than 90 per cent of containerised freight in Kenya.

While no single firm meets the legal dominance threshold of 50 per cent, CAK believes their combined power warrants scrutiny under abuse of dominance provisions. 

For local investors, the investigation has become more than a legal matter—it’s a test of whether Kenya’s economy can finally shake off structural imbalances that have protected large foreign corporations at the expense of homegrown enterprises. 

Many see echoes of past regulatory failures like the 2019 High Court ruling that struck down a provision of the Merchant Shipping Act meant to curtail shipping lines from operating logistics businesses. 

This time, however, momentum appears to be with the local firms. KTA and KIFWA are actively supporting the CAK probe by submitting witnesses, financial records, and contract documentation to back their claims.  

The regulator, for its part, has committed to a full review of pricing practices, vertical integration, consortia arrangements, and market access barriers.