Listed logistics and warehousing company Express Kenya PLC has announced a bold diversification plan through the launch of a massive KSh13 billion mixed-use development project named Project Nexus. The initiative, which will unfold in four phases over the next five years, is expected to reshape a portion of the Mombasa Road corridor in Nairobi by introducing residential, commercial, and medical facilities.
The announcement comes at a time when Express Kenya is grappling with continued financial losses. In the financial year 2024, the company posted a net loss of KSh107.9 million, up from KSh103.4 million in 2023. The firm’s revenue also dipped by 4%, falling to KSh26.4 million, while cash reserves dropped sharply to just KSh608,000. In addition, shareholders’ equity shrunk from KSh520 million to KSh412 million, and accumulated losses stood at KSh606.5 million.
Despite these setbacks, Express Kenya is pushing forward with Project Nexus, which the company hopes will serve as a major revenue-generating venture and mark its entry into the real estate and property development sector. To encourage early buy-in, the company is offering a 5% discount on apartment purchases to shareholders and staff between September 2025 and April 2026.
According to details shared by the company, Project Nexus will be implemented in four major phases. Phase One, estimated to cost KSh250 million, involves the development of a strip mall and a petrol station, expected to be completed by the third quarter of 2026. Phase Two is the most ambitious, with a projected cost of KSh7.65 billion. In this phase, Express Kenya plans to construct 1,200 residential apartments between the fourth quarter of 2026 and the fourth quarter of 2029 through a joint venture partnership.
Phase Three, which will run from the second quarter of 2027 to the second quarter of 2029, will see the construction of a 200,000 square foot commercial mall at an estimated cost of KSh2.1 billion. The final phase, Phase Four, includes plans for an 80,000 square foot medical center and 450 serviced apartments by the third quarter of 2030. This final stage will cost approximately KSh3 billion.
A dedicated sales office is set to open in September 2025 to manage buyer inquiries and coordinate the launch of Phase One developments.
Even as it looks to real estate for growth, Express Kenya continues to face operational and structural financial difficulties. The company’s logistics business has seen reduced performance, largely due to rising direct costs and a sharp drop in warehousing income. The situation worsened with the departure of key clients, notably East African Breweries Limited (EABL), which had been a significant contributor to Express Kenya’s earnings.
Nonetheless, the company has continued operations with financial support from its principal shareholder, whose identity was not disclosed in the latest announcement. This backing has been critical in keeping the company afloat as it seeks new growth paths through real estate and property investment.
Industry analysts say that while Express Kenya’s move into property development may offer fresh revenue streams, the company will need strong financial discipline, robust project management, and consistent investor support to see Project Nexus through to completion. They warn that delays or mismanagement could worsen the company’s fragile financial position.
The choice of the Mombasa Road corridor for the project reflects growing demand for urban housing and commercial spaces in areas with access to major highways and Nairobi’s expanding infrastructure. The location is already home to multiple residential estates, logistics parks, shopping malls, and office spaces, making it a strategic area for property development.
Project Nexus represents one of the largest private sector real estate bets by a logistics firm in recent years. Express Kenya is banking on its brand name, strategic location, and new partnerships to breathe life into the company and restore investor confidence. The success or failure of this ambitious project could determine the company’s long-term future on the Nairobi Securities Exchange, where it remains a listed entity.
