Nairobi Logistics Sector Gets Boost From New Warehousing Facilities

Kenya’s New Warehousing Hub at Tatu City Creates 1,000+ Jobs, Spurs Business Growth
Nairobi — On 5 March 2025, developers at Tatu City officially opened the first phase of the newly built The Link Warehousing & Logistics Park — a Sh 2.5 billion investment that has already generated over 1,000 jobs. The facility spans 12 acres and provides warehousing units ranging from 850 square metres to 10,000 square metres. According to the project backers, this marks a major boost for Kenya’s manufacturing and distribution sectors, reinforcing the role of Special Economic Zones in attracting investment and creating employment.
Inside the hub, several companies have set up operations. Among them are Bakels East Africa — a Swiss-based specialist in baking ingredients — and Novis PLC, a family-owned pasta manufacturer. The portfolio also includes beverage distributors and an electronics assembly firm. With those tenants on board, demand for warehousing space has surged: the first phase is reportedly sold out, and the second phase, slated for completion by the end of 2025, already has a waiting list. Once expanded, capacity will reach 25,000 square metres, complete with modern logistics infrastructure, integrated offices, 24/7 utilities, and safety features like fire systems and energy-efficient lighting.
Officials say the warehouse park is not just about buildings — it’s about transforming Kenya’s investment landscape. The Kenya Investment Authority (KenInvest) highlighted The Link’s role in enhancing Kenya’s competitiveness by attracting both global and local investors.
The special economic-zone incentives — including reduced corporate tax rates, VAT zero-rating, and exemptions on import and stamp duties — are expected to draw more businesses, boost manufacturing and create more job opportunities beyond the initial 1,000.
Looking ahead, the success of The Link may signal a broader expansion of logistics and manufacturing capacity in Kenya, with ripple effects for supply chains, trade and employment across multiple sectors. As the second phase progresses, analysts expect more firms to relocate or expand operations — potentially transforming Tatu City into a major economic hub. If managed well, this development could strengthen Kenya’s industrial base and foster long-term economic growth.