A report by real estate company, Knight Frank has reported an increase in demand for warehouses in the country.
In its Africa Industrial Market Dashboard report that covered the second half of 2023, it was revealed that the Nairobi Gate Industrial Park located along the Eastern Bypass stood out as an attractive hub where investors were looking to put their money.
Knight Frank explained that the increase in demand was occasioned by various incentives that the government was offering in such investment zones.
In particular, the promotion of such locations as special economic zones gives investors tax incentives.
"Government initiatives are playing a pivotal role in bolstering Kenya’s industrial sector, aligning with the transformative goals of Vision 2030 to shift the nation from agriculture to a middle-income industrialised country.
"The government actively promotes investments by utilising the Special Economic Zones (SEZ) and Export Processing Zones (EPZs)," read the report in part.
The real estate company added that the Eastern Bypass economic zone also had one-stop facilities such as tax offices. This was noted to be making it easier for the investors to clear and distribute their products.
"Nairobi Gate Industrial Park sets a precedent with a fully integrated customs control area designed to facilitate ultra-modern logistics, warehousing, and distribution centres.
"This innovative ‘build to suit’ concept in Nairobi offers Grade A flexible space, optimal accessibility, efficient circulation, and ample loading facilities with volumetric capacity," read the report in part.
Owing to the increased demand, it was also noted that the rent rates for warehouses in the city were stable.
Knight Frank reported that investors pay an average of USD6 (Ksh770) per square meter for the warehouses. Notably, this is among the highest rates charged in the continent.
One of the countries that has a higher rate than Kenya is Uganda (USD7).
