More and more companies are making the shift from Nairobi’s long-established Industrial Area to Tatu City Special Economic Zone (SEZ).
The trend reflects both the rising costs and inefficiencies in Nairobi and the opportunities that SEZs- like Tatu City– are opening up for businesses that want to scale across Kenya and into the wider region.
For decades, the Industrial Area has been the heartbeat of manufacturing and logistics. But today, it faces significant pressure. Land has become extremely expensive, averaging around KShs 130 million per acre, making it hard for businesses to expand. Space is also limited, and companies often contend with unreliable infrastructure and long bureaucratic processes. These realities are pushing firms to look for better alternatives that support growth, efficiency, and regional integration.
Tatu City, licensed in 2015 as Kenya’s first mixed-use SEZ, has positioned itself as that alternative. The development sits on 5,000 acres and offers affordable land, reliable utilities, and modern infrastructure. Additionally, the SEZ framework comes with preferential incentives such as reduced corporate taxes, duty exemptions, and a one-stop shop for business registration, that cut down the time and costs of setting up operations.
So far, more than 100 companies have invested in Tatu City, with local firms accounting for about 70% of them. The zone covers 10 sectors, from ICT and agriculture to pharmaceuticals and logistics. It has drawn in big names like Fullcare, the world’s third-largest government medical producer, alongside logistics players who benefit from Eastern and Central Africa’s first 50,000-square-meter Grade A warehousing facility. Recently, Airtel signed a deal to establish a 44-megawatt data center at Tatu, underlining the SEZ’s growing role as a hub for digital infrastructure.
Location is another advantage. Tatu City sits within easy reach of Nairobi’s Inland Container Depot, just a 30-minute drive away, which makes it efficient for imports and exports. Utilities are far more reliable than in the city. Electricity- 95% of it renewable- and water supply are guaranteed, allowing operations to run smoothly. Importantly, businesses also have the flexibility to design and build their own facilities at a fraction of Nairobi land costs, giving them space to grow at their own pace.
The impact is already clear. Tatu City has created 25,000 jobs to date and is expected to eventually house around 250,000 residents while integrating local value chains across industries. It is steadily becoming not just a business hub, but also a driver of Kenya’s broader economic transformation, linking investment, employment, and urban development.
The migration from Nairobi’s Industrial Area to Tatu City is part of a wider shift towards SEZs globally. These zones are designed to attract investment, create jobs, and test new policy frameworks in a way that traditional industrial centers cannot always do. For Kenyan businesses with regional ambitions, Tatu City offers a springboard into Eastern and Central Africa.
While some firms remain cautious, often because of limited knowledge of SEZ benefits, momentum is building. With its mix of affordable land, dependable infrastructure, and enabling policies, Tatu City is proving to be more than just an alternative to Nairobi, it is emerging as a blueprint for how Kenya can position itself in the global investment landscape.
