Tilsi Hopes to ease Warehousing Shortages
Studies have shown an acute warehousing shortage in the country seeing as much as a third of agricultural output wasted. This is directly hurting the health system and curbing development of the country’s retail and manufacturing sectors. Tilisi is one of the first developers to offer such a product in Kenya.
Tilisi Developments Limited hopes to provide customers with ready-made infrastructure and paperwork for buyers to put up warehousing facilities. Tilisi has set aside 86 acres of its 400-acre master-planned development for warehousing and repackaging facilities, supporting infrastructure for the site along the Nairobi- Nakuru highway. The location is business friendly as it is only 10 minutes’ drive from both the Northern and Southern bypasses.
“Our clients and potential customers recognize that warehousing and storage market is lacking quality and number of units across many industries in Kenya. They have identified that storage facilities and being located within efficient logistics parks are now key to our national economic takeoff” said Ranee Nanji.
The estate location provides access to roads, water and electricity supplies, ICT connections, sewage connections, matatu stops, solid waste transfer stations, street lighting, parks and eating facilities for the warehouse staff. This means investors can only purchase the parcels of land and erect the warehousing sheds. World Bank has estimated the process to be complete within months.
Rapid increase in ease accessible warehousing facilities comes at a time National Cereals and Produce Board is only able to handle less than 10 per cent of the maize produced in the country. This is a shortfall in storage capacity according to the Agriculture Cabinet Secretary Felix Kosgey. Tilisi has now open ways to ease these shortages.
Kenya loses up to 30 per cent of its maize harvest every year and suffers repeated maize shortages. The dairy industry is also prone to wastage in times of milk gluts due to scarce storage facilities. It is almost entire agricultural sector which loses yearly. For example about 35 per cent of fish caught is lost due to poor storage according to Kiplagat, J, Wang R and Li T. Renewable and Sustainable Energy Review 15, 2960-2973
Research indicates that Kenya loses about a $100m a year to ruined flowers due to poor storage, according to Lennane A, 2013, Loadstar, 2013. About 30 per cent of harvested mangoes on inadequate storage, according to ACET, in Pathways to Transformation, African Centre for Economic Transformation, 2012
Two thirds of potential earnings from avocados, according to WEForum, Enabling trade forum Valuation to Action, 2014
Lack of sufficient and quality storage space has had an impact on the pharmaceuticals industry too. Shortage of quality storage facilities is causing unsafe materials to be distributed according to the Kenya Medical Supplies Agency.
“The increased growth in various sectors of Kenya’s economy and in the country’s population has not been met by a growth in the availability of quality warehousing to support and sustain them. What we are currently experiencing is demand vastly outstripping supply,” said Kavit Shah, co-CEO of Tilisi Developments Limited.
Kenyan manufacturing industry is poised for forth generating expanded warehousing needs. With a growth rate of 6 per cent in 2015, 6.6 per cent in 2016 and 7 per cent in 2017, forecast by the World Bank. It is expected to put further strain on existing storage facility.
Increase demand for quality warehousing units to adapt to market needs with warehousing is a critical element in supply chain management. Currently, despite being a leading investment destination in Africa, Kenya is behind Mauritius, Namibia and South Africa in the availability of in-demand cold storage facility. This is according to the most recent annual Global Cold Storage report.
To bring the gap between supply and demand in terms of numbers and quality warehousing units, Tilisi provides world class infrastructure providing an alternative to limited supply of traditional storage spaces in the ever increasingly congested Nairobi.
“Many companies have no business without achieving storage space in Nairobi, but are constrained by the options available in the city, many of which do not meet their specifications. Because we understand the vital role that logistics play in development and GDP growth, we are modeling our development to facilitate their operations,” said RaneeNanji, co-CEO of Tilisi.
Tilisi is strategically located in Limuru, investing amounts that go into the billions to support infrastructure for its master planned development, 30 minutes’ drive from Nairobi’s Central Business District.
Studies have shown an acute warehousing shortage in the country seeing as much as a third of agricultural output wasted. This is directly hurting the health system and curbing development of the country’s retail and manufacturing sectors. Tilisi is one of the first developers to offer such a product in Kenya. Tilisi Developments Limited hopes…