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Link Warehousing and Logistics Park opens in Tatu City Kenya

Link Warehousing and Logistics Park opens in Tatu City Kenya

The Link Warehousing and Logistics Park, a new logistics park catering to Small and Medium Enterprises (SMEs) has been launched at Tatu City in Ruiru

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The Link Warehousing and Logistics Park, a new logistics park catering to Small and Medium Enterprises (SMEs) has been launched at Tatu City in Ruiru Kenya.

The project, project developed through a partnership between Tatu City, Chandaria Properties, Mahesh & Tirth Construction, and Steel Structures, is the first SME-focused warehousing and logistics park in Kenya to offer Special Economic Zone (SEZ) benefits.

Link Warehousing and Logistics Park is designed to provide top-tier storage facilities for various goods, including perishables. The facility has already attracted ten businesses, including Novis PLC, a family-run pasta manufacturer, and Bakels East Africa, a global leader in baking ingredients headquartered in Switzerland.

According to Preston Mendenhall, Chief Operations Officer of Rendeavour, the owner and developer of Tatu City SEZ, The Link highlights how mixed-use Special Economic Zones can drive investment from both local and international businesses while streamlining operations.

Speaking at the groundbreaking ceremony for the park’s second phase, Mendenhall noted that the expansion is set for completion by December. The first phase has been fully booked, with a waiting list already in place.

Industrial space demand

This development comes at a time when Kenya’s real estate sector is witnessing increasing demand for logistics and storage spaces, sparking a wave of warehouse construction expected to continue for the next decade.

Research indicates that industrial space demand in East Africa is projected to grow at a faster rate than in any other part of the continent, with Kenya leading the expansion. A 2017 report by JLL predicted that by early 2018, the demand for industrial space in East Africa would exceed that of West Africa for the first time.

Kenya’s industrial space demand is expected to grow at an annual rate of 5.1%, leading to intensified competition among logistics firms for available facilities. This trend presents a significant opportunity for growth and investment in the industrial property sector.

High-quality warehouses, known as Grade A warehouses, are particularly sought after by multinational companies establishing operations in Kenya. Experts note that the limited availability of such facilities creates an investment opportunity for developers. Additionally, infrastructure development plays a crucial role in driving the success of the warehousing sector.