This archive report was first published on 4 August 2020.
With the country struggling with food deficiency and weak horticulture sales, the construction of modern warehouses is crucial in reducing post-harvest losses and improving food security in Kenya.
According to Cold Solutions Kenya Ltd, close to 60 percent of fruits and vegetables produced in Kenya are lost post-harvest, a figure that could rise with more perishable produce.
The company has pledged to spend $70 million (Sh7.5 billion) to construct a state-of-the-art refrigerated warehouse in Nairobi and Mombasa, with the flagship facility located at Tatu City on the outskirts of Nairobi.
Tatu City, a 5000-acre prime land with a logistics complex and over 50 local and international firms, offers an ideal location for the warehouse investor due to its proximity to agriculture-rich regions, abundance of land, and facilitative infrastructure.
Access to agriculture produce is critical to cold storage investors, and the construction of modern warehouses will help reduce post-harvest losses and improve food security in Kenya.
With the government prioritizing food security as a Big Four agenda, the construction of modern warehouses is a crucial step in achieving this goal.
As the country's population continues to grow, the demand for warehouse services for the agriculture sector presents attractive investment opportunities for players in the construction industry.
Location of such facilities is a critical weight in the convenience and profitability scales, and Tatu City has upped its attractiveness by providing power, water, waste management, roads, and ICT backbone to become an ideal operating environment for businesses entering or expanding in the region.
