Tilisi, the mixed-use megaproject set at the meeting point of Tigoni, Limuru, and Sigona, on the outskirts of Nairobi, has today announced the sale of 49 acres of its light industry zone to Africa Logistics Properties (ALP).
The sale accounts for over half of the project’s phase 1 build, for which Tilisi is selling fully serviced plots for light industrial/ logistics use, with paved roads, street lighting, water, electricity and ICT reticulation, sewage treatment plants, matatu stops and recreational facilities for workers within the warehousing zone.
“With the administrative and approval process now complete for Tilisi, and the legal agreements signed, we are delighted to announce this sale to this dynamic and professional logistics developer. Construction of our infrastructure for phase 1 will commence in July,” said Ranee Nanji Co- CEO of Tilisi.
Tilisi Logistics Park is set to create more than 1,000 local jobs on completion, and will be set on the southern spur of its 400-acre mixed-use development, which is one of Kenya’s leading real estate developments, creating a new satellite town on the city’s outskirts.
Tilisi is the nearest megaproject to Nairobi’s city centre, located close to the junction of Nairobi’s new southern bypass, the Northern by-pass and just off the Nairobi – Nakuru Highway, which is the main road cargo route from Mombasa port to western Kenya, Uganda, and Rwanda, currently being upgraded to a six-lane highway by China Wu Yi Construction Company Ltd. “Being set on major arterial roads on the West of Nairobi and within easy reach of the airport was a critical factor in the design of the Tilisi masterplan,” said Kavit Shah, Co-CEO of Tilisi.
Tilisi’s location also makes for an easy reach from Kenya’s main airport, which remains one of Africa’s biggest airports for cargo. With a cargo capacity of 20.3m tonnes, according to the Kenya Airports Authority (KAA), Jomo Kenyatta International Airport is a major hub for regional traders, especially in the global flower business, which requires rapid transport.
The location additionally allows tenants and future owners to bypass the congestion through Nairobi, resulting in more efficient logistics in terms of time and cost.
ALP, which is developing Africa’s first grade A warehouses for rental occupiers in Nairobi, has bought its largest land purchase at Tilisi.
” The 49-acre site we are acquiring from Tilisi will be the location of our second modern grade-A logistics and light industrial park in Nairobi which will give strategic access to both Nairobi and the Western Kenya corridor for companies who operate from our facilities,” said Toby Selman, CEO of ALP.
Tilisi has dedicated 90 acres to warehousing in its first phase of development, with a further 41 acres remaining after its 49-acre sale to ALP. ALP will develop 80,000 square metres of international standard grade-A logistics and light industrial warehouse space for rental occupiers, while the remaining Tilisi plots are available for sale and are designated for owner occupiers to build their own units.
“ALP and Tilisi have complimentary business models, offering multinationals and domestic Kenyan producers a choice of an ownership model or rental model.” said Kavit Shah.
Africa Logistics Properties (ALP) has today announced the launch of Kenya’s first ever grade A logistics and distribution parks for the international and local occupier rental market in order to improve much needed supply chain infrastructure in the country.
The company today announced two land purchases situated in the North and West outskirts of Nairobi, unveiling the purchase of 22 acres at Tatu City, in Ruiru, and 49 acres from Tilisi, towards Limuru.
The two warehouse parks will offer international standard warehousing to multinational and local regional companies in the logistics, retail, light industrial, FMCG and e-commerce sectors.
Kenya is among many African nations suffering losses on inadequate warehousing facilities, with the cost of moving goods in Africa estimated to be up to three times higher than in developed countries, accounting for as much as 75 per cent of retail prices.
“Economic development in Africa now rests significantly on the development of modern grade A industrial and logistics warehouses, which we are moving to build across targeted African capital cities, beginning with Nairobi,” said Toby Selman, the Co-Founder and CEO of Africa Logistics Properties (ALP).
“We have now started construction at the Tatu site, while the construction of infrastructure and road junctions at our western Nairobi site is due to commence in the coming months.”
The design specifications for the ALP warehouses conform with international building standards. “Once complete, the units will also be managed to international property management standards by ALP’s team,’ said Selman.
The company expects to create up to 500 jobs in each of its new warehousing parks.
At Tatu, ALP will be creating 50,000 sqm of grade A warehouse space, to be called ALP North. It has, this month, also agreed terms with an international company for the park’s first rental lease, for 14,000 sqm of warehousing, in Kenya’s largest industrial lease to date.
Each warehouse will provide raised loading bays, 12m high operating eaves, large column grids of 12 x 24 metres, high load capacity, laser levelled flooring together with large high capacity truck yards and parking.
“These specifications enable operators to store up to eight pallets vertically, leading to lower storage costs and overall higher operating efficiencies,” said Selman.
Occupier service charges will also be lower than traditional ‘godowns’, thanks to environmental features such as solar power – with mains and generator back up – and rainwater harvesting.
ALP recently completed the first closing of its oversubscribed initial fundraising, raising $50m from CDC Group, the UK’s development finance institution, and from IFC, a member of the World Bank Group.
Other institutional investors include Maris, a Nairobi based private investment business focused on sub-Saharan Africa, and Mbuyu Capital Partners, an African focused UK based asset manager. ALP also announced last week a $4m investment by DOB Equity, a leading Dutch family office, closing its initial round of equity investments.
The scale and speed of the investor engagement has been driven by the expected economic impact of ALP’s investments and the ALP’s team deep sector experience and execution capability.
“ALP helps to drive down logistical costs by providing grade-A warehousing facilities that deliver built-for-purpose supply chain infrastructure. This infrastructure will create efficiencies that should lead to lower prices for consumers. It will also help both international and local companies to focus on their core business growth instead of having to construct, finance, manage, and maintain warehouses on their own,” said Selman.
ALP’s management team has 40 year experience in developing modern warehousing across emerging markets, having previously built 1.5 million square metres of modern warehousing across Eastern Europe.
An under supply of A-grade quality warehouses, and high demand by tenants for quality spaces, has presented a number of new opportunities for development in East Africa.
In Kenya, the industrial scene is slowly starting to grow and it is soon expected to change the landscape of the country, largely due to key logistics developments like the Africa Logistics Properties (ALP) developments in Tatu City and Tilisi, Actis’s new foray into the sector, as well as Infinity Industrial Park.
According to the Broll Kenya Market Report H1 2017, to be launched on 5 April at the EAPI Summit in Nairobi, key challenges within the industrial market still comprise an undersupply of A-grade quality warehouses, lack of multiple access points from warehouses to major highways, increased levels of traffic in and around Nairobi, and incomplete government projects which are meant to boost the manufacturing sector.
“Kenya’s strategic location makes it a critical transportation hub for logistical warehousing,” said Gordon Bell, Director and Head of East Africa Operations, Broll Property Group.
Unpacking this growing trend, this year’s EAPI summit will once again feature leading real estate development and investment companies from over 23 countries, including representation from all country members of the East African community.
“This year’s EAPI Summit agenda focuses on unlocking new areas of growth for East Africa’s real estate markets. In keeping with the growing interest and opportunities in the regions’ logistics industry, we have been able to bring together the sector’s largest investors, developers and operators. CDC, Emerge Developments, The IFC, Actis, ALP, Improvon, Chandaria Group and Bollore Logistics will all share their views on how to tap into East Africa’s lucrative industrial sector,” said Kfir Rusin, Managing Director of API Events.
The cost of moving goods in Africa is estimated to be on average two or three times higher than in developed countries and transport costs can count for as much as 50-75 per cent of the retail price of goods. The recent announcement by the CDC Group, in partnership with the IFC, to invest in ALP’s Nairobi developments, shows growing investor support for development on the continent and in particular Kenya.
“The existing logistics and supply chain industry across Africa is extremely fragmented and inefficient due to a lack of quality fit-for-purpose infrastructure. This has hampered the development of much needed supply chain and distribution operating efficiency improvements, said Toby Selman, CEO Africa Logistics Properties.
“Africa Logistics Properties is addressing this by developing the first pan-African portfolio of built-for-purpose modern grade-A logistics and distribution centres across key target Africa capital cities for the occupier rental market. Our first two projects will be in Nairobi and our pipeline stretches across Sub-Saharan and North African cities,” he said.
The lack of quality international standard warehousing space has long been a constraint on business growth and economic development. Such new developments now aim to improve operational efficiencies by reducing waste from poor storage, increasing the speed of product delivery and improving product security.
Commercial property development within Sub-Saharan Africa has, over the last decade, been concentrated on both the retail and office sectors, while logistics development has been side-lined, often due to uncertainty over market demand.
With volumes increasing, so has the demand for high quality space from retailers and consumer goods manufacturers seeking to expand their African operations and improve distribution networks and supply chains. A number of logistics and industrial parks are in the pipeline as part of wider urban developments such as Rendeavour’s Tatu City near Nairobi and Roma Park in Lusaka. Well situated near main ports, these locations have been identified as hotspots for logistics developers.
It is yet to be proven, however, that occupiers can be attracted in large numbers into the new developments:
“Although clearly dissatisfied with their existing accommodation, occupiers need to accept that gaining the efficiencies of modern space could mean moving further out of town and may lead to rent increases of up to 50 per cent. This will be the big test for Actis and ALP,” said James Hoddell, MD of Emerge Developments.
“Looking at the rapid growth of demand for warehousing in East Africa, the future of the African logistics sector is a topic we can no longer ignore. There are important questions that need to be answered, as affordability is still a problem. Can the industry adopt technology to bring the building costs associated with warehousing down? In terms of return on investment, how does warehousing compare with commercial and retail sectors? These discussions will be important for the future growth of this sector on the continent,” said Rusin.
With more than 400 delegates registered to attend, this year’s summit will also discuss the move into Kenya’s counties, new infrastructure projects, student housing, retail oversupply vs opportunity, as well as the growing role of pension funds in East African real estate.
The two-day conference will be held from the 5-6 April at the Radisson Blu, in Nairobi, Kenya.
Some of the notable companies in the industry attending include Fusion Capital, Africa Logistics Properties, The IFC, Old Mutual, Sanlam, Mara Delta, Stanlib, Jones Lang Lasalle, Stanbic Bank, The NSE and Safaricom Pension Fund.
M-Akiba is a USSD mobile system that allows Kenyans to invest in Government Bonds.
1. To invest in M-Akiba, dial USSD Code *889# on your line.
2. A prompt will appear on your screen requiring you to enter your preferred Service Personal Identification Number (PIN). Set your preferred PIN then press OK to proceed.
Please note that for subsequent transactions, you will use the preferred PIN you entered the first time. You are advised to keep your PIN a secret and protect it against unauthorized persons. In an event you forgot your PIN, press 0 and follow the prompts to set a new PIN.
3. Enter Your National Identity Number
The M-Akiba bond is open to Kenya’s citizens who have attained legal adult age of 18 years and are in a possession of a mobile money enabled phone, a duly registered line and a valid National Identity card.
4. Register to Participate in M-Akiba
After entering your National ID number, you will then be prompted to register by dialing 1.
5. Accept Terms & Conditions of M-Akiba
The service will revert with terms & conditions of M-Akiba. You are required to read and understand the terms & conditions, if you are in agreement press 1 for YES.
6. Complete Submission of Details
After accepting terms & conditions, you will receive notification from your network service provider informing you of your successful submission of details. You will then wait a few minutes for a confirmation message.
7. Receive M-Akiba Account Details via SMS
The confirmation message will have your M-Akiba Account Number, Your Name and the activation time & date of your M-Akiba Account. To continue trading, dial *889# on your line and follow the prompts.
You can now lend the Government as little as Ksh 3,000 through your mobile phone money transfer service. Through the initiative, the National Treasury is seeking Ksh5 billion from individuals through the Treasury Direct System, M-Akiba to collect the cash.
The Mobile phone USSD traded bond will see your registration, trading and settlement done through your handset. To register, dial *889#. To purchase the bond, you will open central depository accounts via your mobile phone without engaging in physical documentation.
This mobile phone-based purchase of the bond is the brainchild of the Nairobi Securities Exchange, the Capital Markets Authority (CMA), the National Treasury, stockbrokers, investment banks, Central Depository and Settlement Corporation, ICT Authority of Kenya and Nairobi International Financial Centre Authority. Interestingly, it comes hot on the heels of the lowering of minimum amount needed to purchase bonds from Sh50,000 to Sh3,000.
In the current bond issue, interests earned will be paid out every six months. Upon maturity of the bond, the principal amount you invested and the interests you have earned from the bond will be paid through your mobile.
Additionally, investors looking to purchase the bond will be able to continue buying in the subsequent periods up to the date of closure of the issue or when the targeted amount of Kshh5 billion will have been achieved. Investors, who miss out on the bond in the primary issue will have the option of buying it in the secondary market at the NSE.
However, purchase of the bond in the secondary market will be determined by the market forces. “The interest rate (on the bond) will be higher than the interest rates payable on small deposits by commercial banks and other investment channels, and as an infrastructure bond, interest payments to investors will be tax free,” Mr Rotich added.
Local banks currently offer between two and seven per cent for funds in fixed deposit and savings accounts. This means that Sh3,000 will earn you just Sh60 at savings account at two per cent interest rate.
M-Akiba bond will enable you to lend the government money repayable within specified periods. The final interest payable will be lumped together with the principal that you invested, providing you with a guaranteed and more profit than what you would get from your bank.
At 14 per cent rate, an investment of Sh3,000 is set to give investors a return of Sh210 every six months and Sh420 at the end of the year.
CBA Loop’s Lipa na M-Pesa paybill number is 714777.
CBA Loop is a digital banking application that is available via web and mobile. It is targeted at millennials who by culture do not want to visit bank branches. Loop has no branches except for a few stores that allow you to collect your CBA Loop Mastercard.
*Do not use these instructions if you want to deposit to a Commercial Bank of Africa (CBA) account.
The Procedure for depositing money via M-Pesa to your Loop account is as follows
Go to M-Pesa menu on your phone, select “Lipa na M-Pesa”
Select “Enter business no.” and enter the 714777 as the Loop business no and press “OK”
Enter your mobile number as Account Number and press “OK”
Enter amount i.e. amount you want to deposit and press “OK”
Enter your M-PESA PIN and press “OK”
Confirm all the details are correct and press “OK”
You will receive a verification window from M-Pesa where you have 1 minute to verify that the details are correct, if correct, dismiss or ignore, if wrong, enter the number 1 and press OK to cancel the transaction
You will receive a confirmation SMS from M-Pesa immediately.
Loop will then send you a confirmation SMS but you can check your loop account for confirmation of deposit.
If you have not registered for Loop and wish to do so, visit www.cbaloop.com. Registration is online and you only have to visit a Loop store to pick up your Mastercard.
The stores are currently available in the following locations -:
The Point Mall – Buru Buru
Masai Mall – Ongata Rongai
Hours of Business; 8am-8pm Monday to Sunday. Closed on public holidays
Uber has announced that in Kenya, where it is available in Nairobi and Mombasa, it is raising fares upwards to satisfy the demands by its drivers for a fair pricing model.
The full statement from Uber on Thursday reads as follows-:
“Uber works when both riders and driver-partners are benefiting. Riders need safe, reliable transport and drivers need to keep earning. We believe that riders and drivers should have transparency and certainty around our prices.
Prices are designed to encourage more riders on the road, to help increase trips for drivers, but equally, you want to make sure the basic economics of drivers are sustainable. We have always promised to closely monitor driver-partner’s economics, keeping cognisant of how inflation and fuel prices can affect drivers using our app. We continue to stand by that promise because Uber succeeds when our partners succeed.
That is why today we are raising our prices in Kenya. We believe driver-partners will earn more as a result of these changes and that riders will continue to enjoy access to a safe, affordable and reliable service.”
Kenyans are naturally inquisitive, more so about projects that generate public interest. One such project is the Standard Gauge Railway (SGR).
A question that isn’t going away is why Ethiopia has managed to build an electrified Standard Gauge Railway for less money than Kenya, yet ours is not even electric?
Engineers that are part of the SGR Kenya team have taken to Facebook to address that question in detail by providing a detailed comparison that provides an overview of how different the two projects are.
A quick comparison is drawn to the difference in speed, “It’s good to note that electric does not always mean super-fast. The Ethiopian line is only 40km/h faster than the Kenyan line.”
The Facebook post goes further to cast a light upon Ethiopia’s ability to produce enough power to run an electric railway line. “Ethiopia’s electricity generation is about to explode with the construction of the 6,000mw Grand Renaissance Dam , which will give the train service stable power supply. (Kenya Power comes to mind)”
Another reason that has contributed to the hefty bill on the Kenyan line is social and cultural factor that has meant that the Kenya Railway Corporation has had to listen to voices of communities that will be affected by the railway line such as environmentalists who are vocal about the impact of the project on Kenya’s wildlife.
Other issues that have led to the huge cost include land acquisition, the construction of bridges and stations.
China Road and Bridge Corporation (CRBC) was retained by Kenya Railways (KR) to undertake phase 1 of the Mombasa-Nairobi SGR Project while Third Railway Survey and Design Institute Group, Apec Consortium Limited and Edon Consultants International (TSDI/APEC/EDON Consortium) undertake design review and construction supervision of the contracts to ensure the quality standards are met.
A detailed analysis is given in the following pictures
poa! Internet in partnership with Liquid Telecom Kenya has launched a new Internet model into the Kibera slums, drawing thousands of subscribers in just a few months.
Delivered using solar powered hotspots and company has also provided free Internet access to Kibera schools, health centres, churches, mosques and youth centres.
Established in August last year in Kenya, poa! Internet is now employing 25 staff, mostly young people, the majority of them from Kibera, selling Internet for as little as Sh10 for 25MB.
The company’s aim is to bring millions of East Africans online over the next years, using innovative technology and ‘kidogo’ product pricing.
“We are selling internet to individuals in Kibera at affordable prices, and have also provided free Internet to more than eight health centres, 20 schools, and 20 cyber cafes’ in the area” said Mr Andy Halsall, CEO of poa! internet.
poa! is using Liquid Telecom Kenya’s fibre infrastructure, known as a local loop, from a connection near Kibera, to supply the internet to residents of Africa’s second largest slum.
“Liquid Telecom is our partner in ensuring that the less privileged population of Kibera access the same services and quality of Internet as their counterparts in other parts of the country, and at an affordable cost”, he said.
The partnership is making a swift and visible difference, he said.
“Internet has made life much better, with more youths engaging in businesses, such as cyber cafes, and shops where they are selling bundles. This has had a positive impact on these individuals and put great potential in their hands”, he said.
The cost of accessing the internet using poa! ranges from as low as Sh10 for 25 MB to Sh3,000 for 20 GB, in bundles that do not expire. “We have ensured that anybody in Kibera wanting to use high speed, high quality Internet can do so for just a few bob” said Andy.
poa! also provides its customers with free access to a wide range of digital content, including educational and healthcare and other socially beneficial materials as well as sports, entertainment and news. “We want to ensure that the people of Kibera can get access to the latest information even when they don’t have cash in their pocket”, he explained.
Andy raised seed funding in the UK to launch the business, on the basis that East Africa still holds huge potential for internet consumption.
“We are targeting millions of subscribers in this region, if our plans go as scheduled,” he said. “East Africa is highly educated but still not everybody has access to internet.”
This vision has seen Liquid Telecom Kenya name poa! internet as an outstanding example of last mile development of the group’s East African infrastructure.
“The launch and rapid rise of poa! Internet in Kibera represents a fulfilment of our own purpose and vision too, after we invested heavily in the new Nairobi metro network so that it can provide up to 20 times more internet data across the city with high quality and reliability,” said Mr Ben Roberts, CEO of Liquid Telecom Kenya.
He said Liquid telecom was looking forwards to supporting poa! internet as their business expands and rolls out to other areas.
Starting a business involves planning, making key financial decisions and completing a series of legal activities. These 10 easy steps can help you plan, prepare and manage your business.
Step 1: Write a Business Plan
A business plan is an essential road-map for business success. This living document generally projects 3-5 years ahead and outlines the route a company intends to take to grow revenues. While there are various templates that can help you get started online, the best outcome would result from you personalizing your business plan to your needs. Read as many case studies online to get a better understanding of the challenges entrepreneurs face while coming up with a business plan
Step 2: Get Business Assistance and Training
You will find that learning and growth is something that that you will need to embrace throughout the life of your business. An important step in starting your business is to get as much training as you can get from local forums, government as well as formal education about starting and running a business.
Step 3: Choose a Business Location
Your probably thinking that modern day businesses are working virtually. Well, you are right but every serious business needs a location where they can physically serve their customers. Selecting a customer-friendly location should be your priority. In Kenya, especially in Nairobi, the choice for location has been made easier by Co-Working spaces that not only ease your hassle but offer a range of support services that will get you started in the shortest time possible. You can even rent boardroom space at an hourly rate, can you believe that?
Step 4: Finance Your Business
Government backed loans, venture capital and research grants can help get you started.
Step 5: Determine the Legal Structure of Your Business
Depending on the type of business you are operating: sole proprietorship, partnership, corporation, nonprofit or cooperative, it is important to know the legal structure that can influence the way you do business in Kenya.
Step 6: Register a Business Name
Register your business name with the government. Depending on the type of business you choose to operate: sole proprietorship, partnership, corporation, nonprofit or cooperative, you will need to register it under the laws of Kenya
Step 7: Register for Taxes
The Kenya Revenue Authority will have a few instructions for you on which taxes to pay and how to pay them once you choose to do business in Kenya
Step 8: Obtain Business Licenses and Permits
You business will be requires to have the necessary licences and permits which are issued county and municipal councils to regulate how business is conducted in their jurisdiction.
Step 9: Understand Employer Responsibilities
Now that you are an employer, learn the legal steps you need to take to hire employees lest you get into trouble. Some responsibilities govern how you treat, remunerate and even house you employees. Be in the know!
Step 10: Associate your Business with the Industry
Now that your business is operational, taking the next steps for sales and marketing geared towards growth should be top of your agenda. Depending on the sector or industry of business, you can join institutions that lobby on your behalf. Private sector aligned businesses might want to consider KEPSA and other organizations that can help you network and grow the reach of your business.