A few years ago, I visited a manufacturing company tucked inside a sprawling warehouse in one of Kenya’s fastest growing suburbs. From the outside, it looked like a typical industrial block with high steel gates, tight security, trucks lining the driveway, and industrial activities humming in the background signaling booming business.
But once I stepped in, the reality was different: the same space was being used for everything; production, storage, distribution and even administrative roles. It was noisy, cluttered, and borderline chaotic. The admin staff wore earphones to muffle the noise, while the marketing team huddled in a corner trying to hold Zoom calls over the sound of metal clanging.
Contrast that with another business I visited; this time in an industrial office complex off Mombasa Road. It was a breath of fresh air. The offices were upstairs. bright, quiet, and organized. Downstairs, storage and light production were happening in a controlled, well-ventilated space. An even more exciting feature was a fully stocked kitchen where staff could catch a break. The difference in productivity and employee morale was obvious.
Whether you’re a manufacturer, importer, logistics manager, or small business owner in Kenya, choosing between a godown, a warehouse, or an industrial office can make or break your efficiency. In the Kenyan context, all these types of industrial spaces are avaible.
So what does your business really need? Let’s break it down.
Do I need a godown, a warehouse, or an industrial office?
While these terms are often used interchangeably, they serve different purposes and choosing the wrong one can cost your business time, money, and efficiency.
In this article, we break down each type of industrial space, explore their uses, and help you determine what’s right for your operations in the Kenyan context.
What’s the Difference – And Does it Matter?
What is a Godown
A godown is a traditional industrial storage unit used by businesses to store different types of goods. Depending on the nature of a business, a godown can be used to store raw materials before manufacuring or finished goods before distribution. Think of a textile company storing all its imported or unused textiles in a godown while producing, selling and distributing garments in a separate space. In Kenya and much of East Africa, the term godown is used used interchangeably with “warehouse,” but there are key differences. A godown is:
- Usually part of a row or block of units.
- Located in industrial zones like Mombasa Road or industrial area.
- Often used by importers, wholesalers, or distributors.
Fun Fact: The term “godown” originates from the Malay word “gudang,” meaning warehouse. It became common in British colonial territories like Kenya and India. In Kenya, Dunga Road – possibly named after this borrowed term – which is located in Industrial area, Nairobi is the most famous location for godowns.
What is a Warehouse
A warehouse is a larger, often stand-alone facility, slightly more sophisticated with advanced features. Beyond storage, warehouses make it easier to track inventory and organize stored goods. Warehouses can also be used for manufacturing activities, light production and supply chain processes such as receiving inventory, order tracking and distribution. Modern warehouses in Kenya increasingly feature:
- High eaves height for vertical racking.
- Loading bays with roller shutter doors.
- Concrete floors with high load capacity.
- Three-phase power for reliable energy supply and sometimes backup generators or solar.
- Security systems and on-site management.
- Temperature control features
- Convinient designs that make loading, offloading and trucking time-efficient.
Warehouses can serve a range of industries; from FMCG and pharmaceuticals to construction material storage and agritech processing.
Unlike godowns which are primarily used for basic storage, modern warehouses have become increasingly more sophisticated with reliable and backup power supply, advanced security, efficient layouts, and temperature controlled designed.
Fun Fact: The concept of warehousing dates back to ancient civilizations, where granaries and storehouses were essential for preserving food surpluses. With the advent of industrialization and mass production in the 18th and 19th centuries, warehouses evolved into larger, more sophisticated facilities. The growth of global trade and the rise of e-commerce in the 20th and 21st centuries have further revolutionized warehousing, leading to highly automated and technologically integrated “distribution centers” that are far more than simple storage spaces.
What is an Industrial Office
As the cost of commercial real estate and business operations increase, businesses have began appreciating flexi rental spaces that serve all their needs. The perfect workplace should not only be cost effective but also effective in streamlining business operations. An industrial office is a hybrid facility that combines:
- Office space for administrative, marketing or sales teams -well designed to boost productivity.
- Light storage or production areas for goods, machines, or tech equipment.
- Flexible parking lots
- Integrated securty features.
In the past, many businesses DIYed their warehouses or godowns to serve as office spaces. However, developers are now more aware of emerging needs and warehouses are being designed to accommodate all these needs. Industrial offices or flexi-warehouses are ideal for businesses like:
- E-commerce companies needing back-end operations.
- Logistics firms managing fleets and goods.
- SMEs doing light assembly, packaging, or repair services.
- Businesses that run with highly syncronized but diverse teams that rely on prompt communication. e.g manufacturing companies relying on online orders and home deliveries.
What Type of Industrial Space Does Your Business Need?
| Business Type | Recommended Facility | Why |
|---|---|---|
| Large-scale importer | Godown | Affordable, accessible, cluster of units for bulk storage |
| Online retailer | Warehouse or industrial office | Need for packaging, inventory control, and dispatch. An industrial office is necessary for timely order delivery and general customer satisfaction. |
| Manufacturing plant | Modern warehouse | Requires reliable power, efficient space, controlled acess for workers, advanced security and controlled environment for quality control |
| Tech, repair services or light manufacturing | Industrial office | Combines admin and technical work making businesses operations seemless. |
| Perishable goods distributor | Cold storage warehouse | Temperature-controlled and hygienic |
Types of Warehouses in Kenya
- Bonded Warehouse
Licensed by KRA to store imported goods before duties are paid. Often used by clearing & forwarding agents. - Cold Storage Warehouse
Maintains low temperatures—ideal for food, flowers, medicine, and dairy products. - Distribution Centers
Typically located near transport hubs (e.g. Inland Container Depot in Embakasi or Naivasha SGR). Focused on fast turnover. - Smart Warehouses
Tech-enabled with automation, inventory tracking, smart shelves and integration with e-commerce platforms. Rare in Kenya but gaining popularity. - Build-to-Suit Facilities
Custom-built warehouses tailored to a specific tenant’s specifications. Usually leased long-term.
Cost Considerations in Kenya
Ultimately, cost is the biggest consideration for any business. While cost is determined by factors such as location, size of leased space and features (modern or basic), godowns tend to be cheaper compared to warehouses, while industrial offices are likely to be costlier. However, the cost of leasing an industrial space might cancel out the cost of operating from a separate office space.
A business can start small, with a godown and scale as revenues and operations increase.
Don’t forget to factor in:
- Zoning regulations
- Access to transport infrastructure
- Power and water reliability
- Service charge & maintenance fees
Final Thoughts: How to Choose The Right Industrial Space
Before signing a lease or buying space, ask yourself:
- What are my storage or processing needs?
- How frequently will I access the goods?
- Do I need staff amenities (toilets, offices, canteen)?
- Will I grow fast and need to scale operations?
