Logistics firm Express Kenya unveils Sh13b real estate project

Express Kenya is diversifying into real estate with a Sh13 billion mixed use development as it seeks to increase revenue stream and reduce reliance on logistics that has been its mainstay over the years.

The development, dubbed Project Nexus, is expected to play a critical role in turning around the fortunes of the over 100 year-old company that has largely been in logistics but holds huge tracts of prime land including in Nairobi's industrial area.

"This strategic expansion marks a new era for the company that is anchored in resilience, diversification and future-forward value creation," said Express Kenya in a statement.

"For over ten decades, Express Kenya has been a cornerstone of East Africa's logistics sector. Today, the company embarks on a visionary expansion-not stepping away from its foundations, but building boldly upon them.

"This is more than a move into real estate. It's about shaping the infrastructure that will define Kenya's future. These developments are a response to our urban growth and evolving national priorities.

"We are stepping forward to help build spaces where people live, move and thrive."

The company, which started out in 1918 and listed at the NSE in 1978, grew to be a strong player in East Africa's logistics and transport industry has in recent years seen its earnings take a hit.

Last year, the firm reported a net loss of Sh107.9 million, up from Sh103.4 million in the year to December 2023.

Among the factors that have hit the firm's earnings include reduced warehousing demand owing to a glut in warehousing space.

Express Kenya said Project Nexus would reposition it to unlock long-term value, stable revenue streams and significantly enhance shareholder value.

The project will be undertaken in four phases, with the first phase, which will entail a mall and petrol station, costing Sh250 million.

"The first phase introduces a modern strip mall and petrol station, situated on prime, high-accessibility land.

"This urban node will feature curated retail outlets, eateries, and essential services-designed around sustainability, customer flow, and daily convenience," the statement said.

Subsequent phases will be undertaken through joint ventures, with the second phase in which Express Kenya said would develop 1,200 resident apartments to cost Sh7.65 billion.

The third phase will cost Sh2.1 billion and will see it set up a commercial mall while the final phase of the project will be a medical centre.

"The final phase includes development of a medical facility and over 450 residential units. This unique healthcare-and-housing ecosystem embodies integrated wellness and sustainable urban living," said Express Kenya.

"We are future-proofing our business-positioning Express Kenya at the intersection of infrastructure, real estate and innovation. This is not just diversification; it is a value-led transformation."