Tatu City Limited, in collaboration with Chandaria Properties and M&T Construction and Steel Structures, has commenced the construction of a warehouse and logistics park dubbed ‘The Link’, in Tatu City. This marks Kenya’s first Small Medium Enterprise (SME) logistics park with Special Economic Zone (SEZ) benefits. Some of the benefits include:

• Access to persistent power and water
• Easy access to transport corridors
• Close proximity to Tatu Central Business District
• Access control
• CCTV Surveillance
• High-speed internet access
• 29-meter-wide internal roads, and 25-meter-wide asphalt access roads

Additionally, businesses will be exempted from import duty taxes, enjoy zero-rated VAT, and lower corporate taxes at 10% for ten years, and 15% for the subsequent ten years.

Interestingly, the flexible leasing spaces will range from 800M2  to 8,000 M2, with prices beginning from $6 per M2. Compared to a similar project, the ALP West industrial project at Tilisi, both prices commence at $6 per M2, with a minimum leasing space of 610 M2.

Additionally, this comes at a time when Kenya’s industrial sector has been experiencing a boom in activities, owing to factors such as: i) the growth of e-commerce driving demand for storage spaces, ii) Kenya’s recognition as a regional hub thereby attracting both local and international investors, and iii) rapid infrastructure developments in the country, among others. Barely less than a month ago, Zhende Medical Limited, announced plans to construct a medical supplies factory at Tatu City, while Gateway Real Estate (GREA), the Real Estate development subsidiary of GRIT Real Estate Income Group, began the development of a new grade A warehouse facility for Orbit Products Africa Limited, in June 2023. We expect a similar trend to continue shaping the sector’s performance, which in turn supports the growth of Kenya’s property market, and the economy as a whole. 

Estate Intel loves your feedback! Let the Estate Intel Insights team know what you think about Kenya’s first SME logistics park in a SEZ,  by sending an email to [email protected].

Subscribe to ei Pro to access affordable Real Estate data such as; sales rates, yields, supply drivers, and information on key real estate market participants who are active in the market.