KENYA – Nairobi Gate Industrial Park, the first Special Economic Zone (SEZ) with a fully consolidated customs-control area in East Africa, has launched a manufacturing and warehouse park for the country’s textile and apparel industry.
The 100 000m2 Textile Park will benefit tenants and create job opportunities in Kenya’s second-largest manufacturing industry (after food processing).
It will support the country’s economy significantly, attracting foreign direct investment, especially in bulk infrastructure projects.
“The cotton, textile, and apparel industry in Kenya is rapidly growing – and this has resulted in an increased demand for modern manufacturing and warehouse facilities to enhance efficiencies and productivity,” comments Dean Shillaw, Managing Director at Impact North, developer of the Nairobi Gate Industrial Park.
As an approved Special Economic Zone (SEZ), the 100-hectare Nairobi Gate offers fiscal benefits including corporate tax rate reductions from 10% – 30%, zero-rated VAT, reduced withholding taxes, preferential import duties, excise duty, import declaration fees, a 100% investment deduction allowance and lower business permit fees.
Shillaw believes that Kenya stands a good chance of capitalising on geo-political uncertainty in Ethiopia, traditionally a mainstay of international textile and apparel manufacturers because of the introduction of industrial parks in that country during the late-1990s.
Shillaw says when looking for new space, tenants primarily consider location, the availability of labour, the available skillset, quality, and size of warehouses as well as utility costs.
Nairobi Gate’s new Textile Park is in the SEZ closest to the inland container depot and the Jomo Kenyatta International Airport. It furthermore offers easy highway access to regions north and south of Nairobi via the Thika Highway and is close to labour markets.
The consolidated customs-control area provides for sophisticated weighbridges and offers all regulatory services such as Kenya Revenue Authority (KRA), Kenya Ports Authority (KPA), Special Economic Zones Authority (SEZA), customs, and other agencies under one roof, significantly smoothing the administrative burden and increasing efficiencies.
Nairobi Gate’s textile park sets a precedent for quality-built warehouse facilities and could act as a catalyst to drive growth in the market. It offers built-to-suit solutions based on tenant’s requirements with units measuring from 5 000 m2.
The A-grade warehouses incorporate office components on the ground and first floors, with tenant allowances for partitioning, doors, ceilings, electrical lights, and painting. Viewing panels overlook the warehouse floors.
The warehouse component comprises a minimum 9 metre height to underside of the lowest eaves for racking, multiple roller shutter doors and on-grade dock access as well as large panel, FM2 steel fibre reinforced floors. Yards are 35 metres deep to allow for efficient truck circulation. Three-phase power is provided with optional solar back-up and individual utility metering.
According to the Textile Global Market Report 2024 by Research and Markets, the textile industry is expected to grow from US$638.03 billion in 2023 to US$689.54 billion due to growing population, increased demand for man-made fibers, government initiatives supporting the textile industry, robust economic growth in emerging markets, and the implementation of restrictions on plastic usage.
Shillaw says Kenya’s textile and apparel industry has massive potential to create employment for the growing population while contributing positively to the economy.
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