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Logistics Financing Strategies and Economic Growth in Kenya: A Conceptual Framework

Author

Listed:
  • Nancy Nkatha Kinyua

    (Department of Management Science, Technical University of Mombasa, Kenya)

  • Charles Guandaru Kamau

    (Department of Accounting and Finance, Technical University of Mombasa, Kenya)

Abstract

Logistics financing is a critical component of economic growth in Kenya, where the sector faces challenges such as poor credit management, limited financial resources, and high operational costs. This paper examines innovative logistics financing strategies, including digital credit, third-party logistics financing, and machine learning–based credit risk assessment, and their implications for firm performance and competitiveness. By reviewing empirical studies and theoretical frameworks, the paper proposes a conceptual model linking logistics financing strategies to economic growth, highlighting the role of efficient credit management, working capital optimization, and value innovation in strengthening Kenya’s logistics sector.

Suggested Citation

  • Nancy Nkatha Kinyua & Charles Guandaru Kamau, 2025. "Logistics Financing Strategies and Economic Growth in Kenya: A Conceptual Framework," East African Finance Journal, East African Finance Journal, vol. 4(1).
    • Handle: RePEc:cwk:eafjke:2025-03
    DOI: 10.59413/eafj/v4.i1.3
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    References listed on IDEAS

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    1. Kiage Job Abuga & Dr. Lucy Wamugo & Dr. Daniel Makori, 2023. "Liquidity Capacity and Financial Performance of Commercial Banks in Kenya," International Journal of Finance and Accounting, IPRJB, vol. 8(1), pages 76-96.
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    4. Reuben Mwove & Miriam Thogori & Rael Mwirigi & Anne Ngeretha, 2024. "The Influence of Reverse Logistics Strategies (RLS) on the Performance of Food and Beverage Manufacturing Firms in Nairobi City County, Kenya," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 8(9), pages 2489-2498, September.
    5. Andy Wu, 2024. "Purchasing from multiple capital-constrained suppliers using order financing," International Journal of Production Research, Taylor & Francis Journals, vol. 62(22), pages 8157-8172, November.
    6. Huipo Wang & Xiaozhen Fu, 2024. "The Impacts of Regulatory Approaches to Carbon Quotas on Third-Party Logistics Low-Carbon Financing Strategies and Emission Reduction Effects," Sustainability, MDPI, vol. 16(15), pages 1-27, July.
    7. Gachora Susan Wanjugu & Kinyua Jesse Maina & Kirema Nkanata Mburugu, 2020. "The Influence of Value Innovation Strategy on the Financial Performance of Manufacturing Firms in Kenya," The Journal of Social Sciences Research, Academic Research Publishing Group, vol. 6(12), pages 995-1000, 12-2020.
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    Cited by:

    1. Joseph Nyomoo Ng’olua & Rosemary Manene & Hussein Salim Adnan, 2025. "Integrating Strategic Financial Management with Marketing Decisions to Enhance Profitability in Digital Campaigns," East African Finance Journal, East African Finance Journal, vol. 4(4).
    2. Choolwe Mweene & Austin Mwange, 2025. "An Examination of Factors Contributing to the Maize-Centric Procurement Approach in Zambia: Case of The Food Research Agency," African Journal of Commercial Studies, African Journal of Commercial Studies, vol. 6(1).

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    Keywords

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    JEL classification:

    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • L91 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Transportation: General
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General

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