Kenya’s industrial and warehousing sector has received a major boost after the Private Infrastructure Development Group (PIDG) approved a Ksh 1.95 billion ($15 million) investment into the Africa Logistics Properties Industrial Real Estate Investment Trust (ALP iREIT).
The investment will be made through PIDG’s project development arm, InfraCo, with the group set to act as an anchor investor in the REIT, subject to the successful completion of the ongoing capital raise.
The move signals growing confidence in Kenya’s industrial property market, which has been expanding on the back of increased trade, manufacturing and demand for modern logistics facilities.
The ALP iREIT was approved by the Capital Markets Authority (CMA) in December 2025, becoming the first industrial income-focused Real Estate Investment Trust in East Africa. The REIT allows investors to earn rental income from industrial assets such as warehouses and logistics parks, a segment that has traditionally been difficult for individual investors to access.
Funds raised through the REIT will be used to finance ALP’s existing developments, including approximately 35,000 square metres of warehouse space at ALP North in Tatu City and about 20,000 square metres at ALP West in Tilisi. Additional industrial facilities will be transferred into the REIT once they are fully completed and operational.
ALP Chief Executive Officer Raghav Gandhi said the REIT is designed to offer investors stable, dollar-denominated returns while supporting the growth of Kenya’s industrial real estate sector.
“The ALP REIT will give institutional investors confidence to invest in infrastructure assets while supporting the expansion of modern warehousing in Kenya,” Gandhi said.
PIDG Head of Investment Management for InfraCo, Claire Jarratt, said the group is building on its previous experience in supporting REIT structures in Kenya and sees strong potential in the industrial property segment.
“We are pleased to extend our support into the industrial real estate sector and help unlock long-term investment,” she said.
The anchor investment is expected to attract additional funding from pension funds, insurance companies and mutual funds, helping to meet the rising demand for efficient, high-quality industrial space across the country.
ALP’s warehouses are certified under IFC EDGE standards, meaning they are designed to be energy-efficient and environmentally friendly.
The green buildings help businesses reduce operating costs while improving productivity, aligning with Kenya’s broader push for sustainable infrastructure development.
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