NAIROBI, Kenya, Apr 5 – Africa Logistics Properties is set to invest Sh10 billion in a state of the art logistics distribution centers in Kenya.
The centres will be fit with ultra modern facilities and will be Grade A warehousing targeting large logistics and distribution firms.
Managing Director Toby Selman says the facilities will be built at Tatu City and Limuru.
“At Tatu City, we are building a 50, 000 square metre warehousing and in Limuru, we have a 49-acre land that we are planning to build 80,000 square meters,” Selman told Capital FM Business.
The firm sees Kenya growing to be Africa’s economic hub with demand for storage expected to rise in tandem.
The first warehouse will be at Tatu City and set to be completed in September 2018.
“We are looking at distributors, manufacturers, food companies, fast moving consumer goods among others. We are active in Morroco and Egypt but we are soon planning to enter Uganda and Ethiopia,” he added.
Some of the Major shareholders include International Finance Corporation, UK Pension Funds and CDC among others.
The move comes as Multinational retailers players enter the Kenyan Market, among them Carrefour, Choppies, food chain brands that include Burger King and Hardees as well as fashion brands like LC Waikiki and Luxury Brand Dead Sea Premier.
“Furthermore, local retailers continue to seek more franchise agreements with international brands, this being a positive indication of the untapped retail potential in the Kenyan market,” he noted.
According to the latest logistics report by Knight Frank, Nairobi lacks adequate logistics space to meet manufacturers rising demand for improved distribution networks and supply chain.
The report attributes the rising demand for logistics space to manufacturers seeking to expand their African and the associated expansion of its consumer market.