KTDA ICD

active

The IFC project involves the establishment of a greenfield inland container depot (ICD) in Nairobi, Kenya by Kenya Tea Development Agency Holdings Limited (KTDA).  The ICD includes a container stacking yard (6.7 acres), covered warehouses (0.9 acres) and auxiliary facilities.  The ICD is located in a commercial area in Embakasi in Nairobi, adjacent to the ICD owned by Kenya Ports Authority (KPA). The KTDA ICD will provide logistics services to importers in Kenya. The ICD is expected to contribute to an improvement of cargo processing logistics chain in by adding cargo storage and handling capacity in Nairobi. The ICD will offer an alternative to the congested KPA ICD for customers and support ICD-bound traffic growth in the area. It is also expected to improve efficiency in the cargo processing logistics chain.The estimated cost of the project is US$17.3m and IFC will provide a US$10m secured A loan to support the project.  Chai Trading Company Limited (CTCL), KTDA's logistics arm and 100% subsidiary, will be the operator of the ICD.  CTCL currently operates multiple storage/logistics facilities throughout Kenya, including one previously financed by IFC in Mombasa (project no. 32216; disclosure information - https://disclosures.ifc.org/#/projectDetail/ESRS/32216. In addition, IFC provided financing for the construction and operation of seven small hydro power projects for KTDA tea factories (project no. 36402; disclosure information - https://disclosures.ifc.org/#/projectDetail/ESRS/36402).  The E&S issues associated with the hydro projects are being managed satisfactorily by KTDA.The construction of the ICD commenced in February 2019 and is expected to be completed within 16 months.  The construction of the ICD will be managed by KTDA Management Services (KTDA-MS) and the contractor is Arcon Works Limited. At the time of IFC’s site visit, the construction activities were limited to site clearing.