Impact North, a logistics firm jointly owned by Improvon Group and Actis, has launched the construction of an A-grade warehouse and manufacturing project in its Nairobi Gate Industrial Park (NGIP), Kiambu County. The USD 40 mn fit-for-purpose park is intended to serve the textile industry in Kenya by providing prime facilities and networks to clients on a 100,00 sqm piece of land. 

The textile park project is located along the Eastern Bypass and will offer three-phase power with optional solar backup, and robust safety services, given NGIP’s reputation. Additionally, it is expected to provide benefits such as tax rate deductions and Zero-rated VATs among others, given its location in an SEZ. While the Tatu City zone is closer to the Nairobi city centre (approx. 20 Km), NGIP and Tilisi are relatively similar in distance (approx. 30 km). Nonetheless, NGIP is the nearest to key transport and logistics hubs such as the JKIA and Inland Container Depot, boosting its attractiveness to local and international clients. Below is the master plan:

Source: NGIP

Flight To Quality Shaping Kenya’s Industrial Market

Impact’s project comes at a time when the industrial market is witnessing the growth of quality spaces, having been undersupplied in the past. This is driven by the changing market dynamics, demand for quality warehouses, and the government’s support of the manufacturing sector in line with the transformative Vision 2030 agenda. In light of this, Gateway Real Estate broke ground on a new grade A warehouse project barely a year ago, while Tatu City launched construction on The Link in July 2023. The boom in SMEs, e-commerce popularity, Kenya’s popularity as a regional hub attracting investments, and improved infrastructure developments are also other factors that have driven the market’s performance. 

We expect a similar trend to continue shaping the sector’s performance, attracting economic investments, and boosting the country’s overall economic growth through employment creation, revenue generation, FDI growth, and manufacturing sector expansion, one of the largest economic sectors in Kenya.

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