NAIROBI, Kenya- The green manufacturing trend in Kenya is revolutionizing the industrial landscape, driving demand for warehousing space across the country.
This surge is largely attributed to the setting up of assembly plants for e-bikes and e-motorcycles, coupled with government policies promoting industrial parks.
In mid-2022, Roam, a company founded in 2017, expanded into a new 10,000-square-meter (approximately 107,650-square-foot) facility in Nairobi.
Around the same time, BasiGo secured KSh 489 million to kickstart the sale and delivery of electric buses and establish an assembly plant for these vehicles in Kenya.
These initiatives are part of a broader move towards green manufacturing that is significantly increasing the need for warehousing space.
The Ministry of Trade and Industrialization announced plans to build an additional 30 county aggregation and industrial parks for value addition and export enhancement.
Initially targeting 18 parks, the program’s expansion means 48 industrial parks will soon be operational.
This heightened activity has driven prime warehousing rents up by 20 percent to approximately $6 per square meter monthly, according to Knight Frank’s 2024/25 Africa Report.
Government efforts are crucial in this transformation. Special Economic Zones (SEZs) and Export Processing Zones (EPZs) are attracting international investments and supporting the industrial sector’s growth.
These initiatives align with Kenya’s Vision 2030, which aims to transition the country from an agriculture-based economy to a middle-income industrialized nation.
Nairobi Gate Industrial Park, a pioneering SEZ in East Africa, exemplifies these efforts. It features a fully integrated customs control area, modern logistics, warehousing built to international specifications, and distribution centers.
This ‘build-to-suit’ concept offers Grade A flexible space, optimal accessibility, and ample loading facilities, making it highly attractive to international occupiers.
James Lewis, Managing Director of Knight Frank Middle East and Africa, noted, “Africa’s industrial markets have shown remarkable resilience, bolstered by government initiatives in countries like Kenya and Zimbabwe.”
“The rise of e-commerce across the continent is also driving the need for efficient storage and distribution facilities, prompting the development of modern industrial zones with state-of-the-art logistics infrastructure, he added”
Kenya’s prime residential market is equally robust. Prime rents have increased by 5 percent over the last 12 months.
This demand has created a shortage of luxurious rental properties. Prime three-bedroom apartment rents have risen by 5 percent, now ranging between $900 and $1,400 per month.
Kenya’s green manufacturing and strategic government initiatives are significantly reshaping the industrial and residential landscapes.
