Tatu City stands as a unique success story in African urban development.
- •With an investment now hitting approximately $4 billion, it is confidently considered the home of the largest Foreign Direct Investment (FDI) in Kenya.
- •This sprawling Special Economic Zone (SEZ) hub has attracted over 100 businesses, both local and international, by offering international best standards in urban design and development.
- •Solomon Mahinda, Executive Vice President of Tatu City, attributes this rapid influx to the failure of traditional urban and industrial spaces to support modern growth.
For businesses previously operating in limited areas, such as industrial areas that have reached a plateau, Tatu City provides a natural fit for expansion. Investors are seeking well-planned, well-managed spaces supported by robust infrastructure—specifically road networks, power, water, and logistics connectivity—which Tatu City delivers as a ready product.
Beyond Infrastructure: Governance as a Service
While Tatu City builds world-class infrastructure, Mahinda explains that their offering goes beyond mere construction; they provide a different level of governance and management, sometimes perceived as "government as a service".
A major draw for investors is the underlying regulatory policy and framework that allows businesses to thrive. As an SEZ, businesses enjoy exemptions in terms of tax and access to supportive regulatory structures. Crucially, Tatu City is gazetted as a project of strategic national importance and a special planning area. This status means that the investors do not have to travel to government offices; the government comes to them.
This commitment manifests through the one-stop shop, where officers from the Kenya Revenue Authority, Bureau of Standards, and the Ministry of Lands are seconded on-site. This process lifts the "heavy burden" of administrative setup, enabling both local and foreign direct investors to focus purely on their core business. This effectiveness builds credibility and confidence: Fullcare Medical, for instance, expanded from 20 acres to 70 acres after witnessing the ease of setting up, leading to the creation of about 8,000 jobs within 24 months.
The Mixed-Use Ecosystem and the SME Opportunity
Tatu City’s appeal is broadened by its evolution into a mixed-use urban center. While manufacturing remains important, there is a natural progression attracting more service-based firms. The core attraction is the integrated lifestyle ecosystem where people can live, work, and play. This means workplaces are intentionally situated close to residences, social amenities, and schools.
A significant recent focus has been the "democratization of infrastructure" for small and medium-sized enterprises (SMEs). Recognizing that not every SME can afford to buy large pieces of land, Tatu City developed the Link warehousing product.
This leasing option provides SMEs with world-class warehousing and infrastructure, allowing them to benefit from SEZ incentives and access to larger players. This product has been highly successful, running at 90% occupancy and prompting a Phase 2 expansion. Furthermore, Tatu City is now making smaller parcels of land—such as quarter-acre, half-acre, and one-acre lots—available for purchase by SMEs.
The Global View and Future Competitiveness
The long-term vision of Tatu City extends to environmental and community sustainability. The organization is deliberate about allocating green spaces, often designating 20–22% of the master plan area, exceeding the required threshold.
The impact on the community has been massive: the number of people working in Tatu City has ballooned from 5,000 five years ago to over 25,000 today. These benefits extend outward, supporting the general public with six schools (four public), a police post, hospitals, and expanded internet services.
The $4 billion investment signals to international investors that the fundamentals in Kenya are strong and can sustain business interests over the long term.
To sustain this growth, Kenya must adjust its view of competition. Mahinda emphasizes that the country is not competing with neighboring nations, but with global hubs like Vietnam and the Philippines. To secure future FDI, the government must adopt a more long-term perspective on regulatory and policy frameworks to enhance Kenya’s global competitive edge.
