A multi-investor funded Grade A warehouse project will break ground Thursday at Tatu City to provide multinationals with a distribution facility.
Africa Logistics Properties (ALP), which recently raised Sh5 billion from investors, said the project on its recently acquired 22-acre land at Tatu City would serve the East African region both for imports and exports as well as local processing of goods.
Chief executive Toby Selman said plans to put up another warehouse at the 49-acre land at Tilisi in Kiambu were underway. The two facilities are expected to employ 500 people upon completion.
ALP said the projects aim to fill a gap where multinationals had been denied a seamless and intelligent distribution chain handler. The warehouse will leave them and other regional manufacturers to concentrate on their core business.
“This is an intelligent system that takes away storage challenges from companies that now will integrate their information system to our warehouses.
“This will see us supply goods to the markets when supplies run low or send raw materials directly to the production lines when needed,” he said.
Mr Selman said his firm would provide logistic services to retail, light industrial, fast moving consumer goods as well as service the growing e-commerce segment. He said feasibility studies showed that Kenyan companies incurred losses due to inadequate warehousing and delays as well as damages, raising the retail cost of goods by up to 75 per cent.
ALP initial fundraising that closed last month was oversubscribed with UK government’s investment arm, CDC Group and International Finance Corporation injecting Sh5 billion into the venture.
Other investors include Nairobi-based investment firm, Maris and UK-based asset manager Mbuyu Capital Partners.