Netherlands and EU back Ksh.4 billion plan to connect East African produce with European buyers

European buyers could benefit from a more reliable supply of East African flowers, avocados, fruit and vegetables under a €30 million (Ksh.4.3 billion) logistics project that aims to transform how fresh produce moves from farms to international markets.

The Netherlands and the European Union are supporting plans for a cold-chain consolidation centre in Naivasha, designed to bring together agricultural exports from Kenya, Uganda, Rwanda and the Democratic Republic of Congo before they are transported by rail to Mombasa and shipped to Europe.

Financial closure is targeted for 2027, with construction expected to begin in 2028. Netherlands Global Gateway Ambassador Marchel Gerrmann said the project team was working to mobilise the required financing.

The Northern Corridor Cool Logistics project aims to reduce transportation costs for fresh produce by 25 per cent and carbon emissions by more than 90 per cent. It is also intended to limit post-harvest losses and strengthen links between regional producers and European importers.

The investment comes against the backdrop of an established agricultural trading relationship. Kenya exported cut flowers worth approximately $290 million to the Netherlands in 2024, while avocado exports to the Dutch market reached about $50.5 million, according to World Bank WITS trade data. Source: World Bank WITS.

The Netherlands is an important entry point for international flower trade, while European retailers and distributors depend on consistent supplies that meet quality, freshness and delivery requirements. More efficient logistics could help exporters compete on cost and reliability, although the suitability of rail and sea transport will vary by product and delivery schedule.

Dutch Ambassador to Kenya Henn Bakker said the initiative offered opportunities for European and Kenyan companies in cold storage, port and rail services, digital systems, energy supply and food processing.

TradeMark Africa and Invest International are working with the Netherlands and EU partners. Leon Taljaard, Invest International’s head of Global Gateway, Infrastructure Finance and Development, said feasibility studies and consultations had indicated the potential for commercially viable infrastructure.

The partners also envisage the development of complementary facilities in the wider region, including Uganda and Rwanda, to strengthen the corridor’s reach and improve access to markets.

For investors, the project presents an opportunity to participate in infrastructure serving an existing export sector. For farmers, it could mean less waste and improved returns. For European buyers, it offers the prospect of a more efficient supply chain.

Bakker said Dutch and Kenyan businesses had a role to play in making the corridor commercially successful.

“More than 150 Dutch companies are active in Kenya today. I would like every one of you to see a place for yourself in this project, whether as a supplier, an investor or a user of the corridor.”