Construction of Sh6.2 billion warehouse in Tatu city begins


Africa Logistics Properties (ALP) has kicked off the construction of Sh6.2 billion modern logistics and distribution centre at Tatu city.

According to ALP Chief Executive Toby Selman, the first unit measuring 14,000 square metres is set to be opened in September 2018. Two more units will be constructed afterwards, bringing the total warehouse capacity to 50,000 square metres.

"Our vision is to fundamentally improve supply chain infrastructure across Africa and disrupt the current status quo of poor quality 'go down' warehousing," said Mr Selman during the groundbreaking ceremony at Tatu City.

Already, the firm has attracted the interest of 43 local, regional and multinational companies. The firm also hopes to win the manufacturers at Tatu's Industrial Park such as Chandaria, Unilever and Dorman's Coffee.

"The addition of Africa Logistics Properties to Tatu Industrial Park confirms our location as the hub for logistics and warehousing in East Africa," stated Stephen Jennings, founder and CEO of Rendeavour, owner and developer of Tatu city.

The project has been funded by a range of shareholders including International Finance Corporation, CDC Group, DOB Equity, Mbuyu Capital and Maris.

Once complete, the company says, the warehousing complex will provide employment to more than 500 people.

While the leasing price will be considerably higher than that of ordinary warehouses, ALP's grade-A warehouses promises better quality features such as a higher stacking capability to eliminate spoilage of goods.

The company is also planning to construct 80,000 square metres warehouse in Limuru to take advantage of the busy zone.