How Storage Central is Expanding Secure Self-Storage Across Nairobi

Give us an overview of what Storage Central is all about what you do and also a status report on it? An update on current operations, recent developments and strategic direction?

Since our last conversation, we have raised an additional 700,000 dollars to develop the rental capacity of our first store. We added approximately 1,800 square meters, which we inaugurated last month. This expansion includes about 180 rooms, of which approximately 20 have already been rented.

This increase in capacity is significant. It represents a one-third expansion while maintaining a relatively fixed cost base. As a result, all revenue generated from the additional capacity contributes directly to the bottom line. This is a notable characteristic of the self-storage industry, where fixed costs remain stable and incremental revenue translates into profit.

We continue to experience strong demand and a positive response to our services, and we anticipate this trend will continue throughout the year.

Our strategic vision for expansion into East Africa remains unchanged. We aim to develop between 15 and 20 stores in key East African cities within a seven- to ten-year time frame, with the long-term goal of pursuing a potential listing in London.

Our early-mover advantage positions us competitively. We maintain a narrow focus, enabling us to compete effectively with moving companies, international shippers, logistics providers, and security firms. While these competitors may offer storage as an add-on service, it is typically either high-security or very basic. Customers increasingly seek dedicated storage solutions, which positions us as the preferred provider.

This has validated the attractiveness of the self-storage market in Nairobi, and we are optimistic about replicating this success in other major East African cities.

What are your specific growth projections over the next two years, and how prepared are the new markets such as Kampala, Dar es Salaam, and Mauritius for self-storage services? How competitive is the landscape in these regions?

We have served over 2,700 clients with our current facility, which has steadily expanded over the past few years. In 2023, we had 4,500 square meters of leasable space. By 2024, that figure increased to 6,100 square meters. In May 2025, we opened an additional 1,800 square meters, bringing the total to approximately 7,800 to 7,900 square meters of leasable space within the existing facility.

At the end of last year, the facility reached 90 percent occupancy, prompting the expansion. Following the additional capacity, occupancy is currently at approximately 75 percent. This demand has driven our decision to expand further, and we have identified two new sites. Each of these sites will offer approximately 6,000 square meters of leasable space once fully developed. These locations are situated in one of Nairobi’s most affluent areas, considered the second most affluent neighborhood in East Africa after Cape Town.

Regarding revenues from the current facility alone, we project approximately 1.2 million dollars in 2025. In 2026, projections rise to approximately 1.6 million dollars, and by 2027, we anticipate reaching approximately 2.4 million dollars. These figures do not include contributions from the two additional facilities currently under development.

On the question of market readiness, we assess several variables when evaluating new locations: urban density, income levels that support self-storage affordability, the size and activity of the SME sector, and the number of entrepreneurs. These indicators help define both the size and quality of a potential market and inform our positioning strategy.

For example, considering the number of households that could support self-storage: Nairobi has between 2 and 2.5 million; Dar es Salaam, approximately 2 million; and Kampala, about 1 million. In terms of high-end shopping centers, Nairobi and Dar es Salaam each have nine, Kampala has approximately five, and Mauritius has around six or seven. We also evaluate the number of high-rise or luxury apartment blocks in the area, which serves as another key indicator of demand.

In terms of competition, with the exception of Mauritius, these cities do not currently offer modern self-storage facilities designed to serve this market segment. While container rental companies may operate in some areas, they do not compare to purpose-built self-storage facilities that offer multiple unit sizes and value-added services.

What is the total capital requirement needed to achieve the immediate goal of establishing these stores in Kenya, along with the subsequent support of the original expansion plans?

We are looking to raise approximately 20 million dollars. This figure assumes the purchase of each plot, full development of the buildings, and fit-out with storage units. If we were to lease the plots and install drive-up storage units, the required capital would be lower.

Our objective is to raise 20 million dollars, which would enable us to develop five additional stores within Nairobi.

What is the financing structure like? Is it equity, debt, or a hybrid model? Which approach do you prefer for raising capital, and what factors influence that decision?

We consider a combination of financing options, largely influenced by the availability of capital, the tenor, cost, and collateral requirements of the financing.

Typically, when financing a single facility through a bank or similar institution, they are unlikely to finance more than 50% of the project. This means 50 % of the capital must be raised through equity, and 50% through debt.

We prefer debt over equity, as it results in less dilution for shareholders. However, this must be balanced carefully. Unlike in the United States or Europe, where 30-year commercial mortgage loans are common, financing tenors in Africa generally range from five to seven years.

There is also greater availability of dollar-denominated debt compared to local currency debt, which introduces foreign exchange risk that must be managed. We are conservative in our use of debt to avoid financial strain, but we aim to utilize it where possible because it is more tax-efficient and delivers better returns on capital for shareholders.

Ultimately, the decision is driven by the availability and sustainability of financing options.

Given the economic volatility in East Africa, how is Storage Central structuring its business model to maintain financial resilience, sustainability, and effective risk management?

The self-storage model is fundamentally designed to weather economic fluctuations, which is why it is popular globally. Unlike traditional rental properties, self-storage offers month-to-month rental terms. For example, if someone rents an apartment, they typically commit to a one-year lease. If that person loses their income or the local currency depreciates significantly against the dollar, they are still obligated to meet that rental commitment. However, in self-storage, tenants pay monthly, which allows for more flexibility on both sides.

This flexibility enables us to adjust rental rates in line with inflation and market conditions. Additionally, we are not dependent on a single large tenant. In commercial real estate, if a major tenant like a large corporation vacates, it can significantly impact occupancy and revenue. In contrast, we operate a high number of small individual units, 860 in this facility alone with approximately 75 percent occupancy. Rent is collected from hundreds of customers, which diversifies risk and enhances financial stability. If a few tenants default, it has a minimal impact on overall revenue.
Our rents are denominated in Kenyan shillings, which eliminates exposure to foreign exchange risk on the local facility side.

Furthermore, the operational efficiency of self-storage is a key contributor to resilience. For example, we operate this facility with just three staff members. By comparison, a serviced office or co-working space would require a much larger team. This lean structure keeps operational costs low and margins high.

The business model is designed for resilience and sustainability. Our highly atomized customer base ensures that no single client can influence financial performance. We have the flexibility to adjust prices based on demand, and construction and operating costs are relatively predictable.

The model has proven its strength across economic cycles, including during COVID-19 and various financial crises. Demand for storage remains consistent, particularly during downturns when individuals and businesses downsize or shift to remote work both of which drive demand for secure storage solutions.

In terms of risk management, we take several measures. We manage foreign exchange exposure through a currency-buying program, which ensures we have sufficient dollars to meet obligations such as payments to corporate administrators in Mauritius, shareholder dividends, or contractor fees. Aside from FX, we monitor operational risks, including security, and continuously update our policies in collaboration with our suppliers.

Can you explain how the currency buying program operates?

We have forward currency buying contracts with two banks. They set the rate, and we have one-month, two-month, three-month, and six-month options. We act on that purchase based on the amount of shillings we need to dedicate to that currency. The banks will present an offer for example, as of today, you can buy $100,000 at a specific shilling-to-dollar rate. We can lock in that rate for a future date or, when we reach that point, choose the spot rate instead. It is a flexible arrangement.

More broadly, on risk management, this is an important issue, especially in African markets. To manage risk effectively, we follow three principles. First, we work with reliable partners, people who deliver on their commitments, which is not always guaranteed in emerging markets. Second, we ensure everything is set up solidly from the beginning to avoid shortcuts and operational traps. Third, we monitor risk continuously to determine whether it is escalating or manageable. This is our overall approach to risk management.

Let us talk about your Tenure Develop CRM system in a centralized call centre. How will these innovations scale across expanding regional footprints? And additionally, do you have plans to introduce value-added services, such as logistics, packaging, etc., to enhance occupancy rate and revenue streams?

Just to clarify, we don’t operate a call centre. That’s not part of our current infrastructure. However, we do have a robust CRM system that supports our service delivery. The core principle of self-storage is to offer customers a secure, weather-protected environment where they can store their belongings with peace of mind.

To facilitate this, we offer a digital experience starting with our website, where customers can use a space calculator to estimate the storage size they might need. For example, whether you’re storing 20 boxes, bicycles, or the contents of a three-bedroom home, the calculator gives you a reliable guide on the unit size required.

Once a customer arrives at the facility, our sales team will assess and fine-tune the space recommendation based on the client’s actual storage needs. Our platform also enables customers to reserve and pay online, giving them flexibility and convenience, especially useful for those who already know what they need.

In terms of value-added services, each storage unit includes insurance coverage worth KES 50,000, roughly equivalent to USD 350. Clients can top this up if they wish to increase coverage. We also provide locks and transport assistance for moving items into storage.

While we don’t offer full logistics or packaging services, we do create an enabling environment. We provide access to co-working space, loading areas, and parking so that businesses or residential users can handle inventory management and deliveries efficiently. For instance, if a customer wants to offload the contents of a five-bedroom house, we have the space and structure to support that, but we are not in the business of managing logistics or outbound shipping that’s outside our core mandate.

It’s also important to note that 85% of our customers are Kenyan, and 65% are residential users. This demonstrates that we primarily serve individuals and households needing temporary or mid-term storage, such as during relocations or renovations.

To address your point on operational scalability, as we expand into new markets like Uganda and Tanzania, language and digital infrastructure play an important role. For example, Swahili is a widely spoken language in both regions, allowing us to localize and standardize our CRM and web systems across markets more efficiently. That said, English remains Uganda’s official language, but Swahili still offers additional accessibility.


The second point to note is that artificial intelligence is reshaping how customers interact with companies. Today, it’s common for a customer to visit a website and engage immediately with a chatbot receiving information, direction, and education in real-time. AI has made these interactions faster and more efficient.

That said, we recognize that in the markets we are expanding into, self-storage is a relatively new concept. As such, we anticipate a significant need for face-to-face engagement and education in the early stages. Our team plays a key role in guiding first-time customers, answering their questions, and helping them understand how self-storage can meet their needs. Over time, as awareness grows, the concept becomes more familiar, and customer onboarding becomes more streamlined.

While the industry globally is moving toward kiosks, automation, and self-service apps, we believe that in emerging markets like Africa and Latin America, there’s still a strong demand for human interaction, especially in the early adoption phase.

We consistently receive positive reviews from customers who highlight our outstanding customer service, and this isn’t due to an intelligent chatbot it’s because we have well-trained, responsive staff who actively listen, solve problems, and ensure a smooth customer experience. For us, this personalized approach is not only necessary, it’s a competitive advantage.

When it comes to education and customer engagement, culture plays a major role, and in Kenya, people generally prefer speaking to someone directly. The majority of our closed sales can be attributed not to a sleek website or online reservation features, but to the personal interaction with our sales team.

Whether it’s Peter or McKenna, that face-to-face engagement walking customers through the facility, answering their questions, building trust is what ultimately drives conversions. Customers feel comfortable, valued, and confident, and that goes a very long way.

Regarding value-added services, to expand on Nicholas’s point: our clients rarely come to us expecting us to handle logistics, packaging, or distribution. Most of our customers are SMEs, and they typically prefer to manage those functions in-house. Only a handful those who’ve reached a certain scale begin to engage third-party distribution companies. In such cases, they use our facility as a base, where motorcycles or tuk-tuks come to load up goods and head out for delivery.

We do occasionally facilitate third-party services for our clients, and we charge a fee for making those arrangements. However, offering those services ourselves would tie up a lot of capital and management resources. Given the size and scale of the typical customer, it’s not always efficient or justifiable. It takes a significant amount of effort to acquire a client that would warrant such investment.

So looking at the economic impact of your original expansion in the areas you mentioned, in your opinion, what do you think that impact will be?

At its core, Storage Central acts as a catalyst for micro-SMEs, SMEs, NGOs, and early-stage businesses. We provide scalable, flexible storage solutions that allow entrepreneurs and organizations to operate efficiently without the burden of long-term commitments or large overheads.

For example, we offer units as small as three square meters about the size of a closet. That’s ideal for someone selling T-shirts, stationery, or any other small goods. Instead of working out of a cramped apartment or a relative’s garage, they can store their inventory in a safe, secure, well-located facility. Whether it’s BodaBodas or delivery vehicles, access is seamless and professional.

Over time, we’ve watched businesses scale up during peak seasons, like Christmas, and scale down during slower periods. That flexibility has allowed them to operate more sustainably. We’ve also supported clients whose businesses didn’t work out as expected, allowing them to adjust their footprint without penalty, which is vital in volatile markets.

A practical example is our Matumba clients dealers in secondhand clothing. They typically buy unsorted bales and come to our facility about four times a year, renting up to 100 square meters at a time. They sort, pack, and distribute to various Matumba markets across Nairobi. Because of our proximity to the airport, it’s cost-efficient and logistically smart for them. And importantly, they only pay for the space they use, when they use it no five-year lease, no wasted capital.

We’ve also supported larger scale-ups. One of our long-term clients is Field Technologies, a medical supply chain company backed by UNICEF, the Gates Foundation, and the Clinton Health Access Initiative. They began with just 20 square meters, 4 employees, and 3–4 orders per week. Today, they operate from 325 square meters, have grown to nearly 20 staff, and now fulfill 20 orders a day, servicing 130 rural pharmacies and managing the supply chain for 19 clinics around Nairobi.

That’s the kind of economic impact we’re proud of enabling growth, creating jobs, and improving healthcare access through logistical efficiency.

Beyond that, we also value community engagement. Last year, we supported two children’s homes in our immediate area. These partnerships not only create goodwill but also reflect our commitment to uplifting the communities we operate in. As we expand into new markets, we intend to maintain this local-first, impact-driven approach.

If you are speaking to an investor, a fund, or members of the international community, and it can also be personal, what would your core message be?
Our message to the international community is simple: There is a rare, untapped market opportunity in East Africa, and we’re already proving what’s possible.

We’re sitting in Nairobi, at the heart of East Africa, and what we see is striking: a region of rapid urbanization, growing SMEs, increasing mobility and virtually no self-storage industry. In markets like North America, Europe, and parts of Asia, self-storage is a well-established, multi-billion-dollar sector. But here, in large parts of Africa, it’s nonexistent or underserved. That gap represents both a commercial opportunity and a chance to help shape a new industry from the ground up.

We opened our first facility five years ago, after launching the company seven years ago. Since then, we’ve seen remarkable traction. We’ve connected with the Kenyan market, converted skeptics into loyal customers, and helped businesses and individuals alike store smarter, safer, and more flexibly.

This is not about introducing a luxury, it’s about offering a better alternative to a need that already exists. People are already storing their belongings, just inefficiently: in containers, relatives’ garages, crowded warehouses, or their own living spaces. Much like the mobile phone disrupted traditional landlines, we’re offering a modern, accessible, and flexible solution to an old problem.

And it’s working. We’re not just building a business, we’re catalyzing small business growth, enabling job creation, and contributing to key social development goals, including decent work, innovation, and sustainable cities. Our clients range from micro-enterprises and NGOs to fast-scaling companies that started with 20 square meters and now operate out of 300+.

So for investors, this is more than just a financial proposition, it’s a chance to be part of building something transformative, both economically and socially. The returns are compelling, and the impact is real.

As one of our team members put it: we’re not creating a market, we’re improving one that already exists. And in doing so, we’re unlocking opportunity in a part of the world too often overlooked.