Industrial Area Nakuru: A Comprehensive Analysis of Kenya's Emerging Economic Hub.
Nakuru’s Industrial Area, located within Nakuru Town East Constituency, is rapidly emerging as a significant economic zone in Kenya’s third-largest city. As Nakuru continues to cement its status as a vital commercial center, understanding its area facts, property values, and infrastructure developments provides crucial insights for investors, residents, and policymakers alike. This report examines the current landscape of Industrial Area Nakuru, highlighting its growing importance in Kenya’s economic development trajectory.
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Geographical Context and Economic Significance.
The Industrial Area of Nakuru sits within the larger urban landscape characterized by the floor of the Rift Valley, with the Menengai Crater and Lake Nakuru being prominent topographic features. The city’s CBD and adjacent areas, including the industrial zones, are situated on gently sloping land with a gradient of 0-2 degrees, creating favorable conditions for urban and industrial development. This topography has facilitated the expansion of manufacturing and industrial facilities without major engineering challenges.
Nakuru County has been recognized as an increasingly preferred investment destination due to its strategic location approximately 150 kilometers from Nairobi, Eldoret, and Nyeri, effectively positioning it as a central hub in Kenya’s highland region. This strategic positioning has contributed to the United Nations recognizing Nakuru as one of the fastest-growing urban centers in Africa, with substantial economic potential.
The World Bank’s 2015 survey placed Nakuru County’s GDP per capita at $1,413, ranking it fourth highest in Kenya after Kiambu, Nyeri, and Kajiado. The county recorded a 10-year GDP growth rate of 5.1% per annum, primarily driven by industrial activity, tourism, trade, energy, and agriculture. These indicators reflect the robust economic foundation supporting Industrial Area’s development.
Land and Property Market Analysis.
Commercial Land For Sale in Nakuru-Land Prices and Trends.
The Industrial Area of Nakuru presents diverse land pricing, reflecting varying levels of infrastructure development and proximity to key amenities. Current market data reveals significant price points:
- A 0.9-acre plot in the Upper Industrial area near Eveready is valued at KSh 80,000,000.
- Industrial plots in Barnabas (Nakuru Town East) are listed at approximately KSh 2,700,000 per plot.
- A 1/8th acre residential plot in Bangladesh (Industrial Area) is priced at KSh 6,500,000.
Cytonn’s real estate analysis demonstrates that land in Nakuru Town has appreciated at a 3-year Compound Annual Growth Rate (CAGR) of 8.8%. Specific areas within Nakuru have shown even stronger performance, with Kiamunyi and Milimani registering growth rates of 11.6% and 10.7% respectively. The land sector’s annualized capital appreciation rate of 8.8% is attributed to increased speculation and rising demand for land in residential zones adjacent to industrial areas.
Houses & Apartments for Sale in Nakuru-Residential Property Market.
While the Industrial Area is predominantly focused on commercial and manufacturing activities, the surrounding residential areas show varied pricing:
- Rental properties in neighboring areas range from KSh 3,000 to KSh 30,000 per month.
- A 3-bedroom bungalow in nearby Ngata/Verovian was recently listed at KSh 30,000 monthly.
The residential sector in Nakuru is described as being in its emerging stages, with most developments less than 5 years old. The market is increasingly attracting institutional developers creating investment-grade housing units, with uptake rates of 39.7% for mid-end apartments and 22.9% for high-end apartments. This indicates that developers can successfully exit developments within approximately three years, signaling a healthy turnover rate.
Recent Infrastructure Developments.
Industrial Parks.
The Nakuru Industrial Park represents a significant development in the area’s industrial infrastructure. After a two-year hiatus, construction resumed in December 2024, with the project currently at 15% completion. This Sh 3 billion project is expected to create more than 4,000 employment opportunities upon completion. Completed works include site clearance, mass excavation, foundation excavation, construction of two column bases, and the establishment of an administration block.
The park aims to transform the Central Rift region into a major commercial hub hosting diverse industries including ICT hubs, energy-sector companies, engineering and construction firms, and chemical industries. This project is a partnership between the State Department for Industry and the Council of Governors (COG), with Nakuru County allocating Sh 250 million toward the initiative, matched by an equal amount from the national government.
Additionally, preparations for the County Aggregation and Industrial Park (CAIP) in Njoro Sub-county have commenced. The project has received endorsement from President William Ruto and Governor Susan Kihika, with the county government demonstrating its commitment by providing 500 acres of land to supplement the initial 250 acres designated for the park. Each CAIP will house a minimum of four manufacturing sheds spanning 4,000 square meters each, effectively devolving manufacturing capacity to the county level.
In April 2025, President William Ruto announced an allocation of Sh 1 billion for another industrial park, which would be the second after the Naivasha Industrial Park. This development aims to boost the county’s industrial growth, with county leadership tasked to secure 500 acres of land for its establishment.
Transportation Infrastructure.
Nakuru City has undergone significant transportation infrastructure improvements, enhancing connectivity both within the city and to other regions. Roads such as Free Area Loop Road and Mashindano Road in Nakuru East have been upgraded, facilitating smoother traffic flow and improved access to business premises. These enhancements have boosted economic growth while reducing congestion and improving safety for both pedestrians and motorists.
The National Government has invested more than Sh 7 billion in infrastructure upgrades, including numerous road projects and an airport development. The Lanet airport project’s first phase was scheduled for completion within 18 months, with plans to extend the runway from 1.7km to 3.1km in the second phase to accommodate larger aircraft.
Notable road projects include:
- Gilgil-Machinery road (Sh 1.5 billion, 23 kilometers).
- Elementaita-Mau Narok Road (Sh 1.076 billion, 24 kilometers).
- Maintenance works on Naivasha-Narok and Mai Mahiu-Narok roads (Sh 289.9 million and Sh 288 million respectively).
These infrastructure investments are strategically aligned to support the industrial growth and enhance Nakuru’s position as a logistics and manufacturing hub.
Urban Infrastructure Improvements.
Beyond industrial and transportation developments, there are ongoing efforts to upgrade infrastructure in informal settlements, including Gilani, Kaptembwo, and Kwa Rhonda. These projects encompass drainage systems, sewerage, and road improvements aimed at enhancing living conditions for residents and mitigating environmental hazards.
The city administration has gathered feedback from residents regarding completed infrastructure projects, with suggestions for further improvements including additional pedestrian crossings, enhanced drainage systems to manage flooding, and the inclusion of cycling lanes to promote sustainable transportation. The city has expressed commitment to incorporating these recommendations into future projects.
Investment Climate and Future Prospects.
The investment climate in Nakuru’s Industrial Area is increasingly favorable, driven by a combination of strategic governance decisions and economic factors. A survey by the Institute of Economic Affairs indicated that it is easier to start a business in Nakuru compared to five other populous urban areas in Kenya, primarily due to a reduced tax burden that has enhanced the county’s attractiveness to investors. The study awarded Nakuru an overall score of 89 in the tax sub-cluster, surpassing Eldoret (78), Machakos (67), Kisumu (64), and Nairobi and Mombasa (56).
Recent industrial investments further illustrate this positive trend:
- BIDCO Africa Group unveiled a Sh 1.2 billion ultra-modern animal feeds manufacturing plant in Nakuru’s Industrial Area.
- Maxim Agri International established a Sh 1 billion factory at the Oserian Two Lakes Industrial Park in Naivasha.
The county has established an investment board tasked with seeking investors from Western countries and Africa to capitalize on the region’s opportunities. This board, chaired by industrialist Martin Kariuki, comprises a multi-sectoral group including CEOs from the private sector, members of the Kenya Association of Manufacturers, Nakuru Business Association, and the Nakuru Chamber of Commerce and Industry..
A technical team has been formed to guide investments and marketing of the Naivasha Special Economic Zone (SEZ), which has already attracted 11 investors expressing interest in injecting more than Sh 50 billion to develop industries in the area. Approximately 75% of the zone space has been occupied, with SEZA having signed lease agreements with investors and issued letters of offer to others.
Conclusion
Industrial Area Nakuru represents a dynamic and rapidly evolving economic zone within Kenya’s third-largest urban center. With strategic investments in industrial parks, transportation infrastructure, and urban facilities, the area is positioned for substantial growth in the coming years. Land prices continue to appreciate at competitive rates, offering attractive investment opportunities in both industrial and residential sectors.
The convergence of favorable geographical positioning, supportive governance structures, infrastructure development, and economic incentives creates a compelling case for Industrial Area Nakuru as an investment destination. As Nakuru continues its trajectory toward becoming a major commercial and industrial hub in Kenya, the Industrial Area stands to benefit significantly from these developments, potentially yielding substantial returns for early investors while contributing to the region’s economic transformation.
For potential investors, closely monitoring the completion of the various industrial parks and infrastructure projects will provide valuable insights into the optimal timing and locations for investment within this promising area.
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1.What are the current house prices in Barut East?
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4.Are there any upcoming projects in Barut West?
5.How does the Kivumbini project aim to transform the region?