Small and Medium Enterprises (SMEs) in the country are set to benefit from multibillion-dollar warehousing facilities that have opened doors at Tatu City in Ruiru, Kiambu County.
The Link Warehousing & Logistics Park is a joint initiative between Tatu City Limited, Chandaria Properties, Mahesh & Tirth Construction, and Steel Structures. It is expected to provide space for the storage of diverse products, including perishable farm produce, in the region.
The project, worth KSh 2.5 billion, is Kenya’s first Small and Medium Enterprise (SME) Warehousing and Logistics Park with Special Economic Zone (SEZ) benefits. It has already created over 1,000 jobs, reinforcing its role as a catalyst for economic growth and a cornerstone of support for small and medium enterprises.
Already, about 10 companies have established their operations at the facility, including Bakels East Africa, a Swiss-based global specialist in baking ingredients and solutions, and Novis PLC, a family-owned pasta production company. Other companies include beverage distributors and an electronics assembly and supply company.
The first phase of The Link is sold out, and the second phase, whose construction was officially launched, will be completed by the end of 2025, with a waiting list already in place.
“The Link demonstrates the power of mixed-use Special Economic Zones to attract global and local investors while enhancing operational efficiency,” said Preston Mendenhall, Group COO of Rendeavour, the owner and developer of Tatu City SEZ.
John Mwendwa, CEO of the Kenya Investment Authority, commented that The Link is key to the government’s strategy for attracting and retaining investments in the country.
“A business ecosystem such as The Link, and what Tatu City has been able to achieve in attracting over 100 companies, are part of our country’s competitiveness,” Mwendwa said. “As the Kenya Investment Authority, we are the agency responsible for the country’s investment agenda. Whether in a Special Economic Zone or an Export Processing Zone, it is our business to make Kenya comfortable for investors.”
Mwendwa allayed fears about investors closing their businesses or relocating elsewhere, noting that new players are taking over that space.
The CEO noted that the impact of companies that have recently announced the cessation of operations in Kenya due to an unfavorable business environment is minimal, as more investors continue to set up operations in the country.
Mwendwa maintained that the government is making every effort to attract investors by ensuring the business environment is conducive. “It is normal for businesses to relocate or stop operations, but there is always room for others to invest in the country,” he said.
His view was echoed by the Special Economic Zones Authority (SEZA) Chief Executive, Dr. Kenneth Chelule, who said that there is huge potential to be exploited, particularly in medium and small enterprises. Chelule noted that over 70 special economic zones have been established in the country over the last three years, creating room for more than 80 business enterprises.
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On an area of 12 acres, The Link Warehousing & Logistics Park provides flexible, high-quality warehousing solutions and amenities, ranging from 850 sqm to 10,000 sqm.
In The Link’s second phase, the development will more than double its capacity to 25,000 sqm. Investors snapped up the first phase, attracted by integrated office and ablution facilities, advanced logistics infrastructure with wide internal roads for seamless transportation, 24/7 power and water, comprehensive fire safety, and energy-efficient lighting.
Companies setting up at The Link Warehousing & Logistics Park can benefit from the incentives of Tatu City’s Special Economic Zone, including 10% corporate tax for the first 10 years, then 15% for the next 10 years, compared to the standard 30%. Businesses also enjoy VAT zero-rating on goods and services and exemptions on import duty and stamp duty.
According to Mendenhall, more than 25,000 people live, work, and study in Tatu City.
More than 100 businesses are operational or under development, including Heineken, Naivas, Dormans, Kärcher, Cooper K-Brands, Grit Real Estate Income Group, Hewatele, Freight Forwarders Solutions, Roast by Carnivore, CCI Global, ADvTECH, Friendship Group, and Davis & Shirtliff.
By Kamau Njoroge.
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