United Kingdom Backed Investment Unlocks Africa Logistics Properties REIT Listing Worth KES 5 Billion on Nairobi Securities Exchange in Kenya

Kenya’s logistics and industrial property sector has received a major boost after a new investment vehicle successfully debuted on the stock market.

The listing aims to unlock funding for modern warehouse infrastructure while giving local investors a new opportunity to participate in the country’s economic growth.

The initiative brings together partners from both Kenya and the United Kingdom, combining public and private investment to support businesses that rely on efficient storage and distribution systems.

Landmark Listing on the Nairobi Securities Exchange

A new industrial Real Estate Investment Trust (REIT) launched by Africa Logistics Properties has officially been listed on the Nairobi Securities Exchange, marking a significant development in Kenya’s capital markets.

The listing was valued at more than KES 5 billion (around USD 39.95 million) and represents one of the first REIT listings on the exchange in recent years.

During the launch ceremony, ALP CEO Raghav Gandhi rang the traditional trading bell, symbolizing the start of trading for the new investment product.

The REIT is particularly notable because it is denominated in US dollars, allowing Kenyan investors to invest locally while benefiting from the stability of a hard currency.

UK Investment Plays a Key Role

The United Kingdom helped unlock the listing through a combined investment of approximately USD 24 million.

Funding came through the MOBILIST programme and the Private Infrastructure Development Group, with project development support provided through its infrastructure arm InfraCo.

Earlier backing from British International Investment also helped fuel the expansion of Africa Logistics Properties.

Together, these investments created the confidence needed to attract additional funding from Kenyan institutional investors, particularly pension funds that typically focus on assets listed on the stock exchange.

Addressing a Major Challenge for Kenyan Businesses

Limited access to quality warehouse facilities has long been a challenge for companies operating in Kenya.

Poor storage conditions often lead to damaged goods, supply chain delays, and higher costs for exporters.

The new REIT seeks to tackle this problem by pooling funds from investors and directing the capital into the construction and management of modern warehouses and logistics parks.

Better infrastructure can dramatically improve supply chains.

When businesses have reliable storage and efficient distribution hubs, products move faster, losses decline, and companies can compete more effectively in global markets.

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Strong Support from UK and Kenyan Leaders

Officials from both countries see the initiative as an important example of economic cooperation.

Diana Dalton, Deputy High Commissioner and Development Director at the British High Commission in Nairobi, emphasized that reliable warehousing is essential for supply chains and business profitability.

She noted that the partnership between Kenya and the UK helps unlock local investment, boost exports, and generate employment across the country.

ALP CEO Raghav Gandhi described the listing as a milestone for Kenya’s industrial real estate sector, highlighting how the pooled investment will allow businesses to operate more efficiently and expand into new markets.

Meanwhile, Frank Mwiti, CEO of the Nairobi Securities Exchange, called the dollar-denominated REIT a historic step for Kenya’s financial markets.

He explained that the new asset class gives investors access to Africa’s fast-growing logistics sector while offering the stability of a dollar-based investment.

Expanding Investment Opportunities for Kenyans

The project also plays a broader role in strengthening Kenya’s financial system.

By introducing new investment products on the stock exchange, authorities aim to give pension funds and individual investors more ways to channel their savings into productive sectors of the economy.

As more capital flows through formal markets, local companies gain easier access to funding for expansion and job creation.

The Bigger Strategy Behind the Partnership

The initiative forms part of the wider Kenya–UK Strategic Partnership, which focuses on increasing trade, supporting sustainable economic growth, and attracting investment.

It also aligns with the UK’s broader Africa strategy, which prioritizes economic transformation and job creation driven by African development priorities.

Through programmes like MOBILIST and infrastructure financing from PIDG, relatively small amounts of public investment are designed to attract significantly larger pools of private capital.

Impact and Consequences

The launch of the ALP REIT could reshape Kenya’s logistics landscape.

Improved warehousing infrastructure will help businesses store goods more efficiently, reduce supply chain losses, and increase export competitiveness.

Companies that previously struggled with inadequate storage facilities may now have access to modern logistics hubs.

The investment also strengthens Kenya’s capital markets by introducing innovative financial products that encourage local institutional investors to participate more actively.

Over time, the growth of industrial logistics infrastructure could lead to increased employment, stronger trade performance, and broader economic development.

What’s Next?

The next phase involves deploying the capital raised through the REIT into new logistics developments across Kenya.

Africa Logistics Properties is already planning further expansion projects, including additional warehouse space and logistics parks designed to meet international standards.

The company is also developing a new project known as ALP West Kivu, expected to be completed by 2026.

As the REIT matures, analysts expect it to attract additional investors and potentially inspire similar investment products across East Africa.

Summary

Kenya’s logistics sector has entered a new chapter with the successful listing of the Africa Logistics Properties REIT on the Nairobi Securities Exchange.

Backed by investment from the UK and supported by Kenyan institutions, the initiative aims to fund modern warehouse infrastructure while offering new investment opportunities to local investors.

By addressing storage and logistics challenges faced by businesses, the project is expected to boost exports, support job creation, and strengthen the country’s financial markets.

Bulleted Takeaways

• The Africa Logistics Properties REIT launched on the Nairobi Securities Exchange with a valuation exceeding KES 5 billion.
• Investment support of about USD 24 million came from the MOBILIST programme and the Private Infrastructure Development Group.
• The REIT is denominated in US dollars, allowing Kenyans to invest locally in a hard currency product.
• Funds raised will finance modern warehouses and logistics parks across Kenya.
• Improved storage and distribution infrastructure will help exporters reduce losses and reach global markets more efficiently.
• The initiative supports the broader Kenya–UK Strategic Partnership aimed at boosting trade, investment, and job creation.