Cold Solutions Kenya Limited, a temperature-controlled warehouse and logistics service provider, has announced that it will invest USD 70 million (KSh 7.5 billion) in constructing state-of-the-art, temperature-controlled cold storage warehouses in the country.

The cold storage facilities will be located in Nairobi and Mombasa. The firm will construct Cold Solution’s flagship facility in Tatu City Special Economic Zone in Nairobi.

The 15,000 sqm grade ‘A’ cold storage complex on six acres at Tatu City will be the country’s largest, most advanced and efficient in the region.

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).

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.

The fund plans to build up to 10 state-of-the-art temperature-controlled cold storage warehouses in the region. The warehouses will be built to international standards to enable food and product safety. The investment into East Africa will be at least KSh 21.4 billion.

Chris Barron, Kenya Country Head for Rendeavour, Tatu City’s owner and developer notes that 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.