The dream of having a city full of consolidated warehouses in the outskirts of Nairobi seem to be coming true. The first phase of Tatu Industrial Park is nearly sold out, as demand for high-quality land for manufacturing, logistics and warehousing in the northern growth corridor of Nairobi increases at a record pace. Currently at Tatu Industrial Park, one of the largest industrial zones in East Africa, over 40 companies are operational, constructing facilities or planning development, representing over USD 500 million of investment in a key sector for Kenya’s economic development.
Located on the eastern edge of Tatu City, the 5,000-acre mixed-use development 24km from Nairobi, Tatu Industrial Park’s first phase of 454 acres is already 80% sold out. To meet the growing demand, Rendeavour, Tatu City’s owner and developer, has doubled the zone’s size by adding an additional 457 acres.
Nick Langford, Kenya Country Head for Rendeavour, noted that Tatu City is, “Already playing a major role in the Government’s Big Four agenda, especially in the areas of manufacturing and affordable housing.”
“Tatu Industrial Park alone will create over 18,000 construction jobs, and over 24,000 permanent jobs. Multinational, regional and local companies are set to invest over USD 2 billion in state-of-the-art industrial facilities when Tatu Industrial Park is complete,” Langford said.
As a Special Economic Zone, Tatu City offers low corporate taxes and zero VAT, among other benefits.
A recent study by consultancy JLL, shows almost two-thirds of companies in Kenya lack warehousing space. Out of the 52 companies polled across Kenya’s manufacturing, FMCG, pharmaceuticals, logistics, import, export, retail and e-commerce sectors, 62% reported that they had experienced some form of warehousing shortage in the recent past that caused them extra expense.
“Tatu City is able to deliver premium-grade industrial facilities suited to buyer’s requirements, on time and within budget,” said Dean Shillaw, Head of Commercial Sales for Tatu City. “More than 50% of the roads in Tatu Industrial Park are now completed to asphalt standard. This, combined with the convenient location, make Tatu City an un-paralleled destination,” Shillaw continued.
Leading local and international companies including Dormans, Kim-Fay, Unilever, Chandaria Industries , Africa Logistics Properties, Freight Forwarder Solutions, Stecol, Davis & Shirtliff, Pharma Medical, Hunkey Energy, Tianlong, Gallagher, Rhodium Steel, Monwalk Investments, Keppel Industries, Kifaru, Agro Solutions, Transport and Lifting Services, Jilk Construction, Wonderpac Industries, Selenite/Friendship Group, Cooper K Brands and Premier Motors have bought serviced land at Tatu City. The companies are spread across sectors, including energy, light-manufacturing, assembly and distribution, warehousing, FMCG, agri-industry, F&B and construction.