Over the past seven years, the Nairobi Metropolitan Area (NMA) has been at the forefront of Kenya’s industrial market growth. This region, which includes Nairobi, Kiambu, Machakos, and Kajiado Counties, has recorded the highest concentration of industrial projects in the country.
The growth in the area has been driven by several factors such as the surge in e-commerce, demand for high-quality facilities, favorable demographics, enhanced infrastructure, government-led initiatives aligned with Vision 2030 and Nairobi’s role as East Africa’s business hub which has attracted foreign investments.
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The NMA Accounts for 90% of Kenya’s Industrial Market Space
NMA accounts for approximately 90% of Kenya’s industrial space, with Nairobi County holding the largest share at 66%, largely due to its status as the capital city. Kiambu follows, housing key industrial investments such as Tatu City, Nairobi Gate Industrial Park (NGIP), Tilisi, and Northlands City. These areas have attracted major industrial projects like ALP West in Tilisi and ALP North in Tatu City, bolstering Kiambu’s market share.
Other notable industrial hubs include Mombasa, Machakos, Nakuru, and Kisumu Counties, in descending order.
Nairobi and Kiambu Counties Lead in Industrial Rents and Prices
Nairobi remains the best-performing industrial location, driven by its central position and high demand from fast-moving consumer goods (FMCGs) and agribusiness sectors.
Industrial rents in Nairobi average Ksh 430 (US $3.4) per square meter, higher than the market average of Ksh 371 (US $2.9) per square meter.
Kiambu County follows closely with monthly rents averaging Ksh 409 (US $3.2) per square meter and sales prices averaging Ksh 71,000 (US $552.5) per square meter.
Industrial Area, Ruaraka and Mombasa Road Have the Highest Pricing Rates in the NMA
Within the NMA, areas such as Industrial Area, Ruaraka, and Mombasa Road command the highest monthly rents, ranging from Ksh 450 to 550 (US $3.5-4.3) per square meter. Their strategic locations near key infrastructure such as the Jomo Kenyatta International Airport (JKIA), the Standard Gauge Railway (SGR) station, and the Inland Container Depot make them prime industrial zones.
These areas have traditionally been the heart of industrial activity, benefiting from their proximity to the city center and other logistical hubs. Ruiru, which hosts Tatu City, Northlands City, and Nairobi Gate, follows with average rents of Ksh 409 (US $3.2) per square meter.
Recent Industrial Investments Focused on Nairobi’s Metropolitan Areas
While Nairobi has long been Kenya’s industrial hub, recent investments have shifted toward its surrounding areas, such as Kiambu and Machakos Counties. This shift is largely due to the establishment of Special Economic Zones (SEZs), improved infrastructure and more affordable land in these areas.
Kiambu County is home to Kenya’s first operational SEZ at Tatu City, as well as the Nairobi Gate Industrial Park. A notable project in the area is Impact North’s USD 40 million textile park in Nairobi Gate. Other significant developments include ALP West in Tilisi, The Link, ALP North, and Zhende’s medical supplies factory in Tatu City.
Machakos County has also seen notable investments, such as GRIT Real Estate Income Group’s acquisition and revamp of the Orbits factory. Furthermore, the ongoing development of Konza Technology City, which spans Machakos, Makueni, and Kajiado Counties, includes light industrial projects. According to Estate Intel, approximately 15% of the region’s industrial projects are currently in the pipeline, with most developments being private-sector initiatives.
Featured Project – Nairobi Gate Textile Park
- Grade: A
- Location: Ruiru, Kiambu County
- Size: 100,000 square meters
- Developer/Owner: Impact North
- Value: USD 40 million
- Construction Status: Ongoing
Conclusion
Kenya’s industrial sector plays a vital role in the country’s economic development through job creation, revenue generation, foreign direct investment (FDI), and the expansion of the manufacturing sector, one of the nation’s largest industries. Despite this progress, the market faces challenges, particularly with the recent unpredictability in taxation, which could hinder future investments. Companies may reduce or move their operations to regions with more stable and lower operating costs, potentially limiting the sector’s full growth potential.
This article was written in collaboration with Estate Intel.
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