Athi River is no longer just a pass‑through town on Mombasa Road. In 2025, it has emerged as one of Kenya‘s fastest‑growing business hubs, attracting major industrial investments, retail expansions, and residential developments. From the Sh6.2 billion dual carriageway to a Sh64 billion mixed‑use SEZ project, the evidence of economic acceleration is everywhere. This guide breaks down the key drivers – transport infrastructure, industrial investment, logistics growth, retail expansion, and real estate trends – using verified 2025 data.
1. Strategic Location – Why Athi River Works for Business
Athi River sits approximately 30 km southeast of Nairobi‘s CBD, directly on the Mombasa Road corridor. Its location offers unmatched access to:
- JKIA – 15‑20 minutes via Expressway.
- Port of Mombasa – direct highway connection.
- SGR (Standard Gauge Railway) – freight and passenger services nearby.
- Nairobi Expressway – 30 minutes to Westlands.
- Konza Technopolis – 45 minutes south, part of the emerging tech corridor.
This central positioning has made Athi River a natural choice for logistics firms, manufacturers, and commuters alike. As Purple Dot International‘s Sales Manager Kelvin Mutuma noted: “Ease of doing business. If you look at the larger Nairobi metropolitan area, Athi River has the ease of doing business and from the manufacturers’ perspective, is better than the other areas.“[reference:0]
2. Infrastructure – Roads That Unlocked Growth
The most significant recent development is the completion of the Sh6.2 billion Athi River–Machakos dual carriageway. This 20‑kilometre road, an extension of the Mombasa Road dual carriageway, was co‑funded by the World Bank and the Government of Kenya on a 60:40 basis.[reference:1]
Despite delays caused by land acquisition disputes and the COVID‑19 pandemic, the road was finally handed over to KeNHA in 2025. It features three modern interchanges – at Green Park Estate, Daystar University junction, and Mua – as well as two flyovers. Both the Athi River and Stoni Athi River bridges were elevated to withstand flooding, and the road‘s slopes were landscaped to prevent erosion.[reference:2]
The economic impact has been immediate. A spot check by the Nation showed rapid business expansion along the new road – major eateries have set up outlets, new residential estates are springing up, and commercial buildings are on the rise. Landlords have reported rent hikes, with some tripling in just three months.[reference:3]
Motorists have also welcomed the relief. John Mutuku, a Nairobi commuter, said his journey from the city centre to his Green Park home in Athi River now takes just 30 minutes via the Nairobi Expressway. “This road was long overdue. Athi River has become Nairobi‘s bedroom, and now more PSVs are plying the route,” he said.[reference:4]
Beyond the dual carriageway, the government has also completed an access road to the Stoni Athi Affordable Housing Project at a cost of Sh120 million, further unlocking the area’s development potential.[reference:5]
3. Industrial & Manufacturing Boom – Major Investment Inflows
Athi River‘s industrial sector has attracted multi‑billion‑shilling investments in 2025, cementing its status as a manufacturing hub.
MojaEV Electric Vehicle Plant (Sh multi‑billion)
Chinese electric vehicle manufacturer MojaEV has unveiled plans to set up a local EV assembly and manufacturing plant in Athi River. The company is in the final stages of approvals and site preparations, with construction expected to begin in early 2026. Once operational, the plant will create up to 3,500 direct jobs and thousands more indirectly across supply and logistics chains. It will focus on producing electric taxis, motorcycles, and light commercial vehicles, targeting urban transport and delivery markets. The Athi River facility will also serve as a regional distribution hub for Tanzania, Rwanda, Uganda, Mauritius, Ghana, Nigeria, Botswana, and Zambia.[reference:6]
Kenya‘s electric mobility ecosystem is expanding rapidly. Data from EPRA shows registered EVs rose from 3,753 in 2023 to 5,294 in 2024, and further to 6,442 by mid‑2025. Electricity consumption under the e‑mobility tariff surged nearly 300 %, from 1.26 GWh to 5.04 GWh in the same period. Kenya‘s 85 % renewable energy mix has further made EV adoption both cost‑effective and sustainable.[reference:7]
Athi River Textile Hub – EPZA
The government has allocated significant funding to develop the Athi River Textile Hub under the Export Processing Zones Authority (EPZA). Budget allocations for the project were KSh 700 million in 2024 and KSh 1.38 billion in prior years, with completion targets of 75 % by 2025 and 100 % by 2027.[reference:8] The hub is part of Kenya‘s broader strategy to boost textile manufacturing for export, leveraging the African Growth and Opportunity Act (AGOA) and regional trade agreements.
Logistics Hub Construction
A dedicated logistics hub is under development in Athi River, with a 2024 allocation of KSh 624 million and a 2025 allocation of KSh 150 million. The project is expected to be 10 % complete by 2025, 50 % by 2026, and 80 % by 2027, significantly boosting rail and road freight capacity in the region.[reference:9]
Why Manufacturers Are Moving to Satellite Towns
Industrial developers are increasingly relocating to satellite towns like Athi River for practical reasons. A standard industrial property requires up to 100 acres of land or more – something Nairobi‘s Industrial Area can no longer offer. “Getting 100 acres in any other place other than satellite town, is almost impossible, and if found, costs more,” noted Clive Ndege, head of sales at Superior Homes.[reference:10]
Harvest Industrial Park in Athi River, a master‑planned industrial zone sitting on 120 acres of land, is currently in phase 2 of development and is expected to reach phase 6. The developer says demand for industrial investors is high in Athi River because it “offers a very unique location for manufacturers and logistics.”[reference:11]
4. Logistics & E‑Commerce – Warehousing Hotspot
Athi River has become a prime location for warehousing and logistics, driven by Kenya‘s booming e‑commerce sector. In 2023, the logistics and warehousing market hit KES 180 billion and continues to expand.[reference:12]
As land prices climb, more companies are turning to satellite towns – Athi River, Ruiru, Mlolongo – where they get affordable space and access to vital links like the Standard Gauge Railway and Northern Bypass.[reference:13]
Kenya‘s Special Economic Zones (SEZs) and Export Processing Zones (EPZs) are playing a critical role. By offering tax breaks, duty exemptions and streamlined customs processes, these zones have become magnets for global logistics firms, e‑commerce operators and light manufacturers. Tatu City, Athi River, and Naivasha are emerging as hotspots, giving investors confidence to commit capital to long‑term infrastructure.[reference:14]
Africa‘s e‑commerce market is projected to surpass $75 billion by 2025, according to McKinsey Global Institute.[reference:15] This potential has translated into a rush for modern logistics facilities, with prime warehouse rents in Nairobi standing at US $6 per square metre per month and industrial yields averaging 9.5 % – among the most attractive in Africa.[reference:16]
5. SEZ & EPZ – The Athi River Advantage
Athi River hosts both a Special Economic Zone (SEZ) and an Export Processing Zone (EPZ), offering significant tax incentives to investors. The Athi River EPZ is already mature, focused on garments and agro‑processing, while the Athi River SEZ is government‑led with a strong industrial base, attracting export‑oriented manufacturers.[reference:17][reference:18]
Key incentives include:
- Import raw materials and equipment at 0 % import tax.
- Corporate tax: 10 % for first 10 years, then 15 % for next 10 years (vs. standard 30 %).
- VAT exemptions within the zone.
- 100 % foreign ownership permitted.
- Free repatriation of profits.[reference:19]
The EPZA zones have contributed significantly to Kenya‘s job market, with over 60,000 jobs generated nationally and 25,000 at EPZ Athi River alone.[reference:20]
In a separate major investment, Business Bay Square owner Abdiweli Hassan is committing Sh64 billion to a 60‑acre mixed‑use development within the Tatu City Special Economic Zone (SEZ), featuring residential, retail, office, and logistics spaces over a 10‑year timeline.[reference:21]
6. Retail & Commercial Growth – A Self‑Sustaining Town
Athi River has transformed into a “mini‑city” powered largely by the rapid rise of gated communities. Thousands of families now live in estates that offer almost everything a modern urban resident needs, without ever stepping outside the gate. Most estates within Athi River now have their own mini‑malls, supermarkets, barber shops, salons, pharmacies, gyms, churches, daycare centres and even restaurants. “I only leave the estate to go to work,” says one resident of Great Wall Gardens.[reference:22]
Naivas Opens 113th Store – Integrated Convenience Hub
In December 2025, Naivas Supermarket officially opened its 113th branch at the Shell Athi River service station, creating a first‑of‑its‑kind integrated convenience hub. The launch partnered with Vivo Energy Kenya, Pharma Plus, and electric mobility pioneer BasiGo, offering customers a seamless ecosystem where they can refuel, shop for groceries, access pharmacy services, and engage with sustainable transport solutions – all under one roof. Naivas CEO Andreas von Paleske highlighted the strategic importance: “This is one of Kenya‘s fastest‑growing urban corridors.“[reference:23]
Athi River market itself has also received a major upgrade. The county government broke ground on a new shed that will host over 120 traders, replacing harsh conditions where vendors sold goods under the blazing sun and pouring rain. “The ongoing construction of this shed is a blessing in disguise. We hope it will be completed as quickly as possible to spur growth at Athi River market,” said Shantel Muema, a trader who has worked at the market for more than a decade.[reference:24]
7. Real Estate – Land Values & Housing Boom
Athi River‘s property market has seen steady appreciation. According to the HassConsult Land and Property Price Index for Q3 2025, land prices per acre in satellite towns averaged Sh32.3 million, significantly lower than the Sh223.9 million average in Nairobi suburbs. Prices per acre stood at Sh21.4 million in Athi River, compared to Sh25.5 million in Juja, Sh48.7 million in Kiambu, and Sh18.7 million in Kitengela.[reference:25]
Suburban areas around Nairobi, including Athi River, are seeing a 20 % year‑on‑year growth in property values, driven by infrastructure projects like the Nairobi Expressway and planned railway expansions.[reference:26]
Affordable Housing Project – 10,500 Units
The government plans to develop 10,500 houses on 150 acres of land in Athi River, including 5,000 affordable housing units and 5,500 medium to high‑end units. The first phase – Stoni Athi Affordable Housing Project – targets 2,820 low‑cost residential units on a 23‑acre site along Mombasa Road, with the government seeking Sh9.2 billion in private funds through a Public‑Private Partnership (PPP) model.[reference:27] The winning bidder will construct both affordable and market‑rate residential units.[reference:28]
8. Future Outlook – What’s Next for Athi River
The growth trajectory shows no signs of slowing. Key upcoming projects include:
- MojaEV electric vehicle plant – construction early 2026, 3,500 direct jobs.
- Sh64 billion mixed‑use SEZ development – residential, retail, office, logistics over 10 years.
- Athi River Textile Hub completion – 100 % by 2027.
- Logistics hub completion – 80 % by 2027.
- 10,500 affordable housing units – multi‑phase development.
- Digital Hub launch – Machakos County has launched the Athi River Digital Hub, offering training in digital marketing, AI, and robotics for local youth.[reference:29]
With continued infrastructure investment, a growing population, and an increasingly favourable business environment, Athi River is well positioned to become one of Kenya‘s most important economic corridors outside Nairobi.
For more insights on doing business near JKIA, read our Expressway travel guide and discreet accommodation in Athi River.