Kenyan Market Overview
Market Size
KSh 28.7B
Warehousing industry revenue (2023)
Growth Rate
9.5% CAGR
Projected 2023-2028 (KNBS)
Avg. Cap Rate
8.2%
Prime Nairobi warehouses (Q1 2024)
Vacancy Rate
6.8%
Nairobi industrial (CBK 2023)
Kenyan Market Trends
Kenyan Investment Scenarios
Small Warehouse
5,000 sq ft (Nairobi)
Purchase Price
KSh 35M
Price/sq ft
KSh 7,000
Annual Rent
KSh 3.5M
Expenses
KSh 700K
NOI
KSh 2.8M
Cap Rate
8.0%
Medium Warehouse
15,000 sq ft (Mombasa)
Purchase Price
KSh 82.5M
Price/sq ft
KSh 5,500
Annual Rent
KSh 8.25M
Expenses
KSh 1.65M
NOI
KSh 6.6M
Cap Rate
8.0%
Large Warehouse
30,000 sq ft (Nairobi)
Purchase Price
KSh 150M
Price/sq ft
KSh 5,000
Annual Rent
KSh 15M
Expenses
KSh 3M
NOI
KSh 12M
Cap Rate
8.0%
Regional Performance
| Market | Price/sq ft | Rent/sq ft | Vacancy Rate | 1Y Rent Growth | Cap Rate |
|---|---|---|---|---|---|
| Nairobi (Westlands) | KSh 8,500 | KSh 85 | 5.2% | +11.5% | 7.8% |
| Mombasa (Port Area) | KSh 6,200 | KSh 62 | 7.1% | +9.8% | 8.5% |
| Nairobi (Industrial Area) | KSh 5,500 | KSh 55 | 6.8% | +8.2% | 8.2% |
| Thika (Industrial Zone) | KSh 4,800 | KSh 48 | 8.3% | +7.5% | 9.0% |
| Eldoret (Logistics Hub) | KSh 3,900 | KSh 39 | 9.5% | +12.1% | 9.5% |
Kenyan Investment Calculator
Projected Returns
Price per sq ft
KSh 6,250
Rent per sq ft
KSh 750
Net Operating Income
KSh 4.8M
Cap Rate
9.6%
Annual Debt Service
KSh 5.2M
Cash Flow
-KSh 400K
Cash on Cash Return
-2.7%
Kenyan Warehouse Market Drivers
Growth Factors
- E-commerce growth (25% annual increase in online retail - KNBS 2023)
- Lamu Port-South Sudan-Ethiopia Transport (LAPSSET) corridor development
- Manufacturing sector expansion under Big 4 Agenda (6.4% growth in 2023)
- Cold storage demand growth (18% increase in perishable exports)
Challenges
- High construction costs (cement prices up 15% YoY)
- Land tenure issues in key logistics corridors
- High financing costs (CBK rate at 13% in Q1 2024)
- Infrastructure gaps in emerging industrial zones
