Cold Solutions Kenya Limited, a leading temperature-controlled warehouse and logistics service provider, has announced an investment of Sh7.5 billion in astate-of-the-art, temperature-controlled cold storage warehouses in the country.
The cold storage facilities will be located in Nairobi and Mombasa.
In Nairobi, the flagship facility will be built in Tatu City Special Economic Zone.
The grade ‘A’ cold storage complex on six acres — quality, size (much bigger in scale than typical warehouses), hook height and dock levellers, large lay-down area — will be the country’s largest, most advanced and efficient in the region.
Utilising a combination of local and international specialists, the facility at Tatu City is expected to be operational in 12 to 18 months.
It has been flexibly designed to cater for numerous temperature ranges from +26 to -40 C and multiple product ranges, from fresh fruit and vegetables, to pharmaceuticals and vaccines, meats and poultry, and frozen foods.
Cold Solutions Kenya Limited is a portfolio company of ARCH Cold Chain Solutions East Africa Fund, a private equity fund advised by ARCH Emerging Markets Partners Limited (ARCH).
ARCH is a specialist emerging markets investment advisor with deep experience of emerging markets, private equity, asset management and legal and governance matters over many decades.
ARCH focuses on delivering added value to investments, based on a risk-adjusted approach.
By establishing the Cold Chain Solutions East Africa Fund, ARCH Emerging Markets Partners Limited intends to spearhead the development and operation of large scale energy efficient cold chain solutions facilities and end to end logistics throughout five countries in East Africa covering Ethiopia, Kenya, Rwanda, Tanzania, and Uganda.
“We are proud to announce the inaugural Cold Solutions facility in Kenya, the first of a network of industrial scale, cold chain solutions throughout East Africa. Cold Solutions’ one-stop-shops are designed to allow businesses to keep track of products in real-time and facilitate transportation across East Africa through temperature-controlled trucks, either within the inner city or to long-haul destinations. Our storage facilities, together with our transportation and management services, will mean dependability and reliability,” Jared Irving, Managing Director ARCH Emerging Markets Partners Limited said.
Chris Barron, Kenya Country Head for Rendeavour, Tatu City’s owner and developer, said they are delighted to welcome Cold Solutions’ transformational cold storage complex to Tatu Industrial Park, which is home to more than 50 Kenyan, East African and multi-national businesses.
“By providing power, water, waste management, roads and ICT, Tatu City has created an ideal operating environment for businesses entering or expanding in East Africa,” Barron said.
The United Nations’ Food and Agriculture Organization estimates that over 40 per centof food in Sub-Saharan Africa perishes before it reaches a consumer (this is often referred to as food loss). This can be as high as 60% for fresh produce in Sub-Saharan Africa.