Continued ethnic and political unrest in Kenya ruining East Africa’s supply chain
February 6, 2008 by SwizStick
Filed under Supply Chain Management
Kenya is the gateway to its landlocked neighbors who rely on its coastal ports and roadways to supply all manner of goods to their economies. This report from AllAfrica.com illustrates the devastating effect Kenya’s ongoing unrest is having on the supply chains of their neighbors:
While blocking the roads have sparked a shortage of crucial goods in these parts of the country, the crisis has had a devastating impact on the flows of goods to landlocked neighbours.
In some weeks, this crisis virtually cut of the supply chain network of regional countries such as Uganda, Rwanda, Burundi parts of Democratic Republic of Congo and Southern Sudan.
The violence has also had a major negative impact on the Port of Mombasa where off-loading of goods had slowed to a crawl.
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The Uganda Manufacturers Association last week told journalists that they had so far lost about Sh2.5 billion in delayed goods deliveries, merchandise burnt en route and drops in productivity due to lack of raw materials. But some manufacturers thought that the figure was conservative.
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