People Daily

Firms report warehouse shortages

Almost two thirds of companies in Kenya are currently facing warehousing shortages, with some being forced to deliver goods directly to their clients’ premises.

A poll released yesterday by Tilisi Developments, a local player in the logistics real estate sector, of 52 companies polled across Kenya’s manufacturing, fast-moving consumer goods, pharmaceuticals, logistics, import, export, retail and e-commerce sectors, 62 per cent reported they had experienced some kind of warehousing shortage in the recent past.

“Of the 62 per cent of warehousing users that have experienced warehousing shortages, 35 per cent said they had to rent out extra space, 10 per cent were forced to deliver the goods directly to the clients’ premises rather than storing them, incurring extra costs, 12 per cent expanded their own warehousing space, while six per cent did not find any solution,” said the report.

Companies polled also reported constraints caused by quality of their warehousing, with 60 per cent of users, spanning both warehouse owners and warehouse tenants, highlighting quality issues including poorly ventilated spaces, leakages, power shortages and poor structural planning which caused difficulties in accessing goods within the warehouse.

Respondents said this had increased stock contamination rates and in cases where food and flowers were being stored, it accelerated deterioration.

Of companies polled by Tilisi, half said they sought new warehousing facilities but pharmaceutical and food producers reported scarcity in warehousing with cold storage, and temperature control.

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