This archive report was first published on 29 August 2019.
Kenya's transport sector is on the verge of a significant transformation with the adoption of blockchain technology. This innovative technology has the potential to revolutionize the industry by increasing efficiency, reducing costs, and enhancing transparency.
According to Prof Bitange Ndemo, the chairperson of the Distributed Ledger Technologies (DLT) and Artificial Intelligence (AI) task force, blockchain technology will greatly benefit Kenya's transport industry. He explains that the efficiency lacking in the industry will be created, allowing everyone on the chain to know what is happening where and when.
For instance, if a container is transporting a load of luggage from Mombasa to Nairobi, it need not return empty once it offloads in Nairobi. Other customers will be able to see it on the chain and use it to transport their goods to Mombasa. This will ensure full utility of the containers, besides customers enjoying lower transport costs as there will be no middlemen involved.
However, despite the promises of a virtually connected transport sector, many hurdles abound as Kenya welcomes the 4IR in the transport sector. Mr Ramah Rugut, the CEO of Twende, a mobile carpooling service in Nairobi, highlights the challenges his business faces, including a complete lack of decentralized information on the state of a car, which informs the cost if you want to purchase one.
Mr Benjamin Arunda, author of 'Understanding the Blockchain', decries the slow implementation of data digitization in the motor industry. He explains that it will take time for motor manufacturers and users to massively adopt blockchain fully in cars because this sector is not adequately digitized.
Despite these challenges, Prof Ndemo remains optimistic that the system will be useful in managing data in self-driving cars and curb the data manipulation that currently exists. He believes that blockchain will enhance transparent interaction between self-driving cars and help in the management of electric charging stations.
With the rise of autonomous cars and millions of devices communicating with each other through the Internet of Things, there is a need for these interactions and transactions to exist on an immutable database of shared, secure and highly permissioned access. A blockchain system hosting manufacturers, the government, parts distributors, dealers, service mechanics, insurance providers, and others could support the ability for parts or equipment within a car to autonomously sense its own needs.
