Global logistics executives have ranked Kenya among the top promising investment markets in Africa, after South Africa and Nigeria.
A report titled Agility Emerging Markets Logistics Index 2016 says a fast-growing middle class and the demand for mineral resources are important growth drivers in the country.
Others are new oil and gas finds, rapid infrastructure development, stronger agricultural demand and increased foreign direct investments.
While South Africa leads with 26 per cent, Nigeria ranks second with 17.5 per cent and Kenya follows with 15 per cent.
Kenya has moved up two tiers since last year, showing positive improvement in terms of development.
“The market is open for first movers who can navigate risk and nurture African talent. The opportunity is for those seeking to build long-term, sustainable businesses that bring world-class practices and adapt to local conditions,” said Mr Geoffrey White, the CEO of Agility Africa.
However, a majority of logistics firms are still wary of entering the promising markets.
More than 1,000 executives interviewed said poor infrastructure, lack of power generation and corruption are high risks in the growing economies.
Throughout 2015, many threats and challenges to growth in both developed and emerging economies caused disruption and turbulence, stifling growth.
“China’s slowing economy, lower oil prices, volatile currencies and the spectre of higher US interest rates all circulate and cause uncertainty, mainly because each has an impact, directly or indirectly, on a fundamental driver of the logistics industry - global trade volumes,” states the report.
This has made the chief executives downgrade growth for emerging markets, including Kenya, downwards, dismissing explosive growth.
The CEOs state that the uneven impact of these variables will perhaps see strong growth in certain sectors of certain markets.
Over a half of those interviewed (59.4%) express the belief that emerging market growth of around 4.7 per cent could be considered realistic over the course of 2016.