Real-Estate, Trade & Logistics

Situation Analysis & Competitive Advantage Strategic Interventions Areas of Opportunity

Situation Analysis & Competitive Advantage

Real Estate, Trade and Logistics - The Kenyan Context

Touted as one of the fastest-growing economies in the world, Kenya has often been referred to as the economic hub of East Africa with favourable trade memberships, improved infrastructure, and pro-business reforms being the key drivers underpinning this economic development.

To entrench the country’s strategic positioning as a regional hub and improve the efficiency of logistics efficiency, the National Government is implementing a number of policies and significant transport infrastructure projects.

The establishment of the Kenya Transport and Logistics Network (KTLN) to oversee the country's rail, pipeline, and port operations is a proactive policy effort by the government to enhance Kenya’s competitiveness in the region.

This policy framework was designed to catalyze the infrastructure projects in the sector including the upgrading of the existing road and highways network in the transport corridor connecting Kitale to South Sudan, the expansion work at the Port of Mombasa, the construction of the Lamu Port, the construction of the standard gauge railway as well as the  Lamu Port-South Sudan-Ethiopia Transport (LAPSSET) Corridor a US $23billion m ulti-modal project aimed at providing deeper economic integration between Kenya, Ethiopia, and South Sudan.

Despite the adverse impact of COVID-19 affecting supply chains across the globe, Kenya’s trade volumes with her neighbours remained fairly consistent. This resilience further enhances the investment opportunities in transport and logistics within the region.


Kenya’s Direction of Trade - Exports in millions of USD


2018 2019 2020 Jan-21 Feb-21 Mar-21
Somalia 148      
115      
106  
6 
7  
12
South Sudan 127 122 218 25 12 13
Tanzania 292 327 294 22 26 28
Uganda 659 619 676 48 81 72

Source: Kenya Revenue Authority


Real Estate, Trade and Logistics in Turkana County

Turkana County is the second-largest county in Kenya covering an area of over 77,000 square kilometers and accounting for 13.5 percent of the country’s total land area. Located in the North West, Turkana County shares a border with Uganda, South Sudan, and Ethiopia.

Source: Turkana County Integrated Development Plan 2018 - 2022

This strategic location positions Turkana County as a critical gateway to the East African sub-region and the Great Lakes region to facilitate regional trade, and promote regional integration as well as interconnectivity.

In 2018, saw the County record average trade inflows of USD 3.45 million. This mostly consisted of vegetables and beverages. Trade outflows consisting of food, basket products, and livestock averaged USD 432 thousand in the same year.

Trade and logistics continue to play a significant role in driving the local and national economies. Employing an estimated  190,000 people.  , the sector hosts a variety of domestic and foreign investment opportunities for both formal and informal players.  These opportunities are guaranteed by increased demand from a growing middle class as well as improved trade and logistics infrastructure that facilitate the movement of goods in and across the country

Land plays a significant role in the decision to invest in trade and logistics. With most of the in Turkana County held under the community land ownership system, the Turkana County Government, through the County Department of Lands, has developed Spatial Integrated Development Plans to guide investors on the strategic locations where they can set up their investments. The Turkana County Investment Promotion Unit, through advisory services, is also on hand to support investors to identify strategic parcels of land for investment

Strategic Interventions

To enhance the County’s competitiveness, the Turkana County Government has championed investor-friendly policies and has strategically invested in interventions that are designed to unlock opportunities across the County including:

  • Direct investment of  USD 41.6 million  between 2018 and 2022 for the effective planning, development, and management of infrastructure, as well as the efficient delivery of services to the County’s urban centers. This includes the designation of municipal status to Lodwar town and Kakuma town, as well as the implementation of the land registration strategy and integrated spatial plans to designate specific parcels of land for investments

  • Direct investment of USD 58 million to support enterprise development through the establishment of biashara centers, enhance the governance structures of cooperative societies as well as the legal framework to promote the equitable participation of women, youth, persons living with disabilities, and refugees in socio-economic activities

  • Investment in improving the security and access infrastructure to tourism sites in and around the county. This includes the LAPSSET corridor Resort City project, the rehabilitation and upgrade of the Eldoret-Kitale-Lodwar-Nadapal road and the rehabilitation of the 22 airstrips and airports in the county

  • Improved telecommunication infrastructure to enhance phone and Internet connectivity

  • Upgrading the Lodwar and Lokichoggio airports under the LAPSSET Project as well as the rehabilitation of airstrip infrastructure

  • Rehabilitation and routine maintenance of over 2,000km of intra-county roads connecting Lodwar to Lokichar, Lokichoggio, Kalokol, Kakuma, and Lokori

  • Rehabilitation and upgrade of inter-county roads including the 500km A1 tarmac road from Kitale to Nadapal - the border of Kenya and South Sudan



Areas of Opportunity

The Turkana County Government has established partnerships with the Kenya Investment Authority, the LAPSSET Corridor Development Authority , and the Kenya National Chamber of Commerce and Industry. Through these partnerships, the County Government, in consultation with stakeholders, is constantly profiling and documenting domestic as well as foreign direct investment opportunities in Real Estate, Trade, and Logistics

In line with the Kenya Vision 2030 and the County Government’s Nine-Point Development Agenda, the Turkana County Government invites interested investors and mid-sized startup enterprises to participate and develop opportunities in :

  • Development of industrial parks in Kakuma and Kalokol and an Export Processing Zone in partnership with the County Government and the Export Processing Zone Authority

  • Sand harvesting and processing plant for construction materials, glass, and ceramics

  • Development of commercial, industrial and residential property along the A1 transport corridor in line with the integrated spatial plans

  • Development of a water transport system connecting Turkana and Marsabit. This is to be done in partnership with the Kenya Maritime Authority

  • Last-mile Internet Service Providers to connect consumers spread across the urban centers

  • Transport and commodity trading opportunities with South Sudan, Ethiopia, and Uganda

  • Establishment of sales, service, and maintenance infrastructure for boda boda motorcycles

  • Procurement and spillover opportunities from the LAPSSET project

For more information regarding the advisory services and incentives available in these investment opportunities, please contact the Turkana County Investment Promotion Unit