Nairobi, Feb. 24 -- Logistics financing is a specialised form of supply chain finance that provides funding based on the movement and storage of goods. Instead of just looking at a firm's balance sheet, lenders use the actual goods (inventory, in-transit cargo) as collateral.

For a country like Kenya, whose key exports (tea, coffee, cut flowers, horticulture, and now apparel) are often perishable or time-sensitive and dominated by Small and Medium-sized Enterprises (SMEs), logistics financing can be transformative.

SMEs form the backbone of Kenya's export sector. They often lack the working capital to fulfill large overseas orders. They get paid 30, 60, or even 90 days after shipment, but must pay for inputs, labour, and logistics upfro...