Kenya ramps up cold chain investment as post-harvest food losses reach US$578 million

Cold chain infrastructure investment in Kenya is increasing as the country continues to face high post-harvest losses across horticulture supply chains.

According to a 2025 study by the World Resources Institute Africa, food loss and waste cost Kenya approximately KES 72 billion (US$578 million) annually, with 30 to 40 per cent of food production not reaching consumers.

Market research firm TraceData estimated Kenya’s cold chain market at KES 40 billion (US$321 million) in 2023. The company also estimated post-harvest losses above 30 per cent for cold-chain-dependent products, including mangoes and avocados.

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Commodity data presented in the report showed avocado losses in the domestic market at 35 per cent compared with 15 per cent in export channels. Mango losses ranged from 17 to 56 per cent depending on post-harvest handling systems, while potato losses were estimated at 19 to 23 per cent, representing annual losses of KES 12.9 billion (US$104 million).

Kenya’s avocado export sector continued to expand despite lower production. According to USDA estimates, avocado production declined 11.2 per cent in 2024 to 562,000 tons following reduced rainfall, while export volumes increased to approximately 128,000 tons. Export value rose 11 per cent to US$159 million.

The report linked export performance to post-harvest infrastructure, including packhouses, pre-cooling systems, reefer transport, and grading operations.

Investment activity in cold storage infrastructure has also increased. Cold Solutions Kenya opened a 15,000-square-meter cold storage facility at Tatu City in 2023 as part of a wider KES 7.5 billion (US$60 million) investment program covering Nairobi and Mombasa.

The facility operates across temperature ranges from +26C to -40C and currently provides capacity for approximately 20,000 pallets. In January 2026, the company secured an additional US$19 million in financing to expand operations in Mombasa.

The broader ARCH Cold Chain Solutions East Africa Fund program targets 100,000 tons of cold storage capacity across facilities planned for Kenya, Rwanda, Tanzania, Uganda, and Ethiopia.

At Jomo Kenyatta International Airport, Swissport added a 750-square-meter cold storeroom connected directly to airside operations. The facility handles perishables, including fresh-cut flowers exported to Europe, and includes vacuum cooling systems capable of reducing pallet temperatures from 24 °C to 2 °C within 22 minutes.

Smaller-scale cold chain projects are also expanding through county-level initiatives, including modular cold rooms.

Source: The African Exponent