Demand For Warehousing Taking Off

Demand for warehousing is expected to increase over the medium term due to the growth of e-commerce, logistics and manufacturing.

Kenyan demand is being driven by the governments implementation of its Vision 2030 policy to transform the economy from one reliant on agriculture to a middle-income industrialised country, according to Charles Macharia, head of research and strategic consulting at Knight Frank Kenya.

Inward international investment is being attracted by the establishment of Special Economic Zones SEZs and Export Processing Zones EPZs.

He cites the Nairobi Gate Industrial Park as an innovative build-to-suit concept which offers Grade A f lexible space, optimal accessibility, efficient circulation and ample loading facilities, all of which are key considerations for occupiers, particularly those of the international variety, he writes in the 2024/25 edition of the Knight Frank Africa Report.

Kenyas green-manufacturing strategy has resulted in warehouse space being taken up by assemblers of e-bikes and e-motorcycles.

This has contributed to prime warehouse rentals rising by 20 over the past six years, now averaging 6 m2.Economic growth of around 5.7 in 2024 and a projected 6 in 2025 is boosting demand for warehousing in Tanzania, particularly along Nyerere Road, Dar es Salaams prime industrial area, according to the report.