Northlands City: Nairobi Gate promises to change the game in Kenya’s warehousing and logistics industry

Kevin85ify

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Apr 6, 2019
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Nairobi Gate promises to change the game in Kenya’s warehousing and logistics industry

WEDNESDAY, JULY 29, 2020 16:31
The first phase of the landmark Nairobi Gate
The first phase of the landmark Nairobi Gate Industrial Park development located off the Eastern Bypass in Nairobi is almost complete. The first two warehouses of 5,000 square metres each, will be handed over in August 2020.

Nairobi began as a railway settlement in the late 1890s. Later, it became the capital city of what was then British East Africa.

The extension of the town’s boundaries in 1919 and again in 1927 expanded the municipal area to about 30 square miles.

Today, the capital city of Kenya is a sprawling metropolis, covering 425 square miles and accommodating a resident population of 4.4 million people, according to the Kenya Population and Housing Census of 2019. Over and above this figure, Nairobi has a day population in excess of six million people.

Considering its legacy, warehouses in Nairobi have until recently been mainly owner developed and located in the old industrial nodes. These facilities tend to be small-scale Grade ‘C’ go-downs. They are generally of low structural quality and do not meet the standards expected of present-day logistics providers, distribution companies, e-commerce firms and pharmaceutical suppliers. In addition, severe traffic congestion and constrained operational efficiencies limit growth opportunities.

This is why Kenya is primed for new, well-located smart warehousing that complies with accepted international standards.

“Warehousing has evolved over the years, most significantly through advances in technology. Today, we note that an average warehouse is not simply a storage facility,” says Paul Williamson, Head of Leasing at Improvon, the developer of Nairobi Gate – a state of the art warehouse and distribution park on the Eastern Bypass in Nairobi.

The 103-acre Nairobi Gate Industrial Park is estimated to cost about $110 million (Ksh11 billion) on completion.
The creator, Improvon, is one of Africa’s largest industrial and logistics developers, in which Actis has a stake. Improvon has delivered over 20 million square feet (slightly more than 1.8 million square metres) of built-up space across sub-Sahara Africa since inception.

“Logistics and warehouse parks such as Nairobi Gate provide a real value proposition for our tenants. The more efficient our warehouses are, the lower the overall cost of occupation for our tenants become,” Williamson explains.

Kenya’s high economic growth rate and access to the rest of East Africa have attracted many foreign investors in the logistics and warehousing sector. Growth is further supported by the government’s efforts to enhance infrastructure in support of business efficiency, with remarkable success so far.

The first phase of the landmark Nairobi Gate Industrial Park development located off the Eastern Bypass of Nairobi is almost complete, despite some challenges as a result of the Covid-19 pandemic. The first two warehouses of 5,000 square metres each, will be handed over in August 2020.

Source: Business Daily
 
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