Kenya's US$35 Million Naivasha Cold-Chain Hub to Consolidate East African Produce for European Markets

A €30 million (approximately US$35 million) cold-chain consolidation hub in Naivasha, Kenya, will pool flowers, avocados, fruits, and vegetables from Kenya, Uganda, Rwanda, and the Democratic Republic of Congo for rail transport to Mombasa and onward to European markets. The Northern Corridor Cool Logistics project is backed by the Netherlands and the European Union, with TradeMark Africa and Invest International coordinating the effort alongside Dutch and EU partners.

Project scope and timeline

The hub will provide cold storage, consolidate shipments, and coordinate logistics between growers, exporters, and international buyers. Complementary facilities are planned in Uganda and Rwanda. Financial closure is targeted for 2027, with construction expected to begin in 2028.

Post-harvest losses and export context

According to Kenya's Ministry of Agriculture, post-harvest losses account for 30–40% of agricultural output, partly due to inadequate infrastructure and handling during harvesting, transportation, and storage. The project is intended to address these losses through cold storage, consolidated shipments, and rail connections.

Kenya's horticultural export earnings increased by 6.3% to approximately US$1.68 billion in 2025, compared with US$1.58 billion in 2024, according to the Kenya National Bureau of Statistics. Cut flowers generated approximately US$801 million, while fruits and vegetables contributed US$774 million. Export volumes, however, declined from 468,438 tons in 2023 to 402,195 tons in 2024; vegetable shipments fell from approximately 164,100 tons to 66,643 tons, while fruit exports rose from 188,102 tons to 225,415 tons.

Expected impact and dependencies

The project is projected to reduce transportation costs by 25% and cut carbon emissions by more than 90%. Its effectiveness will depend on electricity availability, temperature management, farm-to-hub transport, and coordination across the supply chain. The impact on individual growers will hinge on access to services, collection arrangements, transport charges, and the costs of refrigerated logistics.

Netherlands trade link

The Netherlands remains a key export destination for Kenyan horticulture, importing approximately US$290 million worth of cut flowers and US$50.5 million worth of avocados in 2024.