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

Abstract

Logistics financing is a critical component of economic growth, particularly in Kenya, where the sector faces numerous challenges, including poor credit management, limited financial resources, and high operational costs. This paper explores innovative logistics financing strategies and their potential to improve the financial performance and competitiveness of logistics firms in Kenya, especially in Mombasa County. The research highlights the importance of effective credit management, the role of machine learning models in mitigating credit risks, and innovative financing mechanisms such as third-party logistics and digital credit. Additionally, it discusses the broader economic implications of logistics on key sectors like agriculture, floriculture, and tourism. By reviewing empirical studies and theoretical frameworks, this paper proposes a conceptual model illustrating the relationship between logistics financing strategies and economic growth. The findings suggest that innovative financial solutions, including value innovation and working capital management, are essential for fostering an efficient logistics sector that contributes to Kenya’s economic development.