According to www.cnbcafrica.com, a private infrastructure development group has approved a $15 million investment in African warehouse development, to be deployed via an Industrial Real Estate Investment Trust (REIT) — East Africa’s first — set for listing on the Nairobi Securities Exchange in March 2026.
Industrial REIT Marks Capital Market Milestone
Raghav Gandhi, Chief Executive Officer of Africa Logistics Properties, confirmed the firm — an integrated real estate company focused on institutional-grade industrial real estate — secured approval to launch the REIT. The listing aims to broaden access for institutional investors and scale high-quality project development across East Africa.
“Real estate is inherently capital-intensive, and with our belief in the importance of high-quality industrial real estate, accessing capital through this REIT will facilitate substantial growth.” — Raghav Gandhi, Chief Executive Officer, Africa Logistics Properties
Logistics Costs and Infrastructure Gap
Current logistics costs in Kenya account for 30% of GDP, compared to 10–12% in developed economies — a gap the source states reflects widespread reliance on lower-grade warehousing facilities commonly referred to as ‘godowns’. According to the report, modern warehousing is no longer viewed solely as a cost center but as a strategic enabler of productivity, especially for manufacturing and distribution firms.
E-commerce and Operational Impact
Though e-commerce represents only 2% of Kenya’s GDP, its growth is accelerating due to rising internet penetration. However, the source states existing infrastructure lacks the quality needed to support rapid, efficient distribution. Tenants at Africa Logistics Properties’ facilities reported a 60% reduction in goods turnaround time after moving into modern, technologically-enabled warehouses — a direct improvement in operational efficiency and top-line performance.
AfCFTA and Cross-Border Readiness
The Africa Continental Free Trade Agreement (AfCFTA) is expected to boost intra-African trade by 50% in the medium term — but only if supported by upgraded logistics infrastructure. The source states the agreement demands enhanced connectivity and improvements in roads, utilities, and ports. Gandhi emphasized that for Kenya — positioned as a regional logistics hub — investment in both real estate and hard infrastructure is essential to fulfill its strategic role.
- Logistics costs: 30% of Kenya’s GDP vs. 10–12% in developed economies
- E-commerce share of Kenya’s GDP: 2%
- Tenant-reported turnaround time improvement: 60%
- AfCFTA projected intra-African trade increase: 50%
Source: www.cnbcafrica.com
Compiled from international media by the SCI.AI editorial team.
