Nairobi Gate launches Textile Park for international manufacturers

Judy Ndunge News & Updates April 13, 2024

Nairobi Gate Industrial has launched a manufacturing and warehouse park for the textile and apparel industry in Nairobi.

The 100,000m2 Textile Park is set to benefit tenants further creating job opportunities in Kenya’s second-largest manufacturing industry after food processing.

The project also aims at improving the Kenyan economy and attracting foreign direct investment (FDI), 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,” Dean Shillaw, Managing Director at Impact North said during the launch on April 11, 2024.

The textile park offers a built-to-suit solution based on tenants requirements with units measuring from 5,000m2.

The warehouses will incorporate office components on the ground and first floors, with tenant allowances for partitioning, doors, ceilings, and even electrical lights.

Its consolidated customs-control area will offer all regulatory services such as Kenya Revenue Authority (KRA), Kenya Ports Authority (KPA) and other agencies under one roof.This significantly smoothens the administrative burden further increasing efficiency.

“All our units are equipped with modern fire and safety provisions, such as smoke detection, fitted hose reels, fire extinguishers, and fire hydrants. The warehouses are fit for purpose, offering tenants plug-and-play convenience to International Labour Organisation standards,” added Shillaw.

According to the groups 2022/2023 Annual Report, Kenya is the largest manufacturing facility outside of Sri Lanka employing over 4 000 people.

The factory accounted for nearly 20% of Kenya’s total apparel exports, and generated 39% in revenue – second to Sri Lanka at 46%, with Ethiopia at 7%.

As a result of its stability and high economic growth, Kenya has emerged as a preferred location for many international tenants since 2021.

“Kenya is expected to become Africa’s textile and apparel hub. Nairobi Gate’s excellent location and SEZ status provide several financial and non-financial benefits for licensed tenants.With available land and capital, Nairobi Gate could be the first,” added Shillaw.

According to Shillaw, tenants prioritise several factors when searching for new spaces.These include location, labour availability, warehouse quality, size, as well as utility costs.

The Textile Park will be closest to the inland container depot and the Jomo Kenyatta International Airport. It will also offer easy highway access to regions North and South of Nairobi via the Thika Highway, closer to labour markets.

Globally, traditional textile parks employ about 100 million people and started in emerging markets including India and Sri Lanka.

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.Thus makes it a very viable investment in the industry.

Shillaw believes that Kenya has potential to contribute to Africa’s textile and apparel hub .And with time could eventually be in the frontline of the industry.

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