- The Government of Kenya, through the Ministry of Investments, Trade, and Industry, has officially declared the Olkaria area in Naivasha, a Special Economic Zone (SEZ).
- This milestone is set to position Kenya as a regional hub for industrialization while leveraging the country’s world-class geothermal resources for sustainable economic growth.
The Olkaria Special Economic Zone in Nakuru County spans approximately 8,292 acres and will serve as a key driver for industrial investment, clean energy manufacturing, and export-oriented production. By providing businesses with incentives such as tax exemptions, infrastructure support, and access to affordable geothermal power, the SEZ is expected to attract local and international investors seeking cost-effective, sustainable operations.
Speaking on the designation, KenGen Managing Director and CEO, Eng. Peter Njenga, emphasized the strategic importance of the Olkaria SEZ in Kenya’s economic transformation agenda and transition to clean energy.
“This declaration cements Kenya’s commitment to industrialisation, job creation, and sustainability. Olkaria’s abundant geothermal energy makes it an ideal location for industries looking for reliable, low-cost, and green power, aligning with Kenya’s vision of becoming a global leader in renewable energy-driven industrialization,” said Eng. Njenga.
According to the NSE-listed energy generator, the Olkaria SEZ will support industries in green manufacturing, agro-processing, electric mobility, and data centres, among others. The move aligns with the government’s Bottom-Up Economic Transformation Agenda (BETA) and Kenya’s commitment to net-zero industrialisation.
With its strategic location along key transport corridors, including the Standard Gauge Railway (SGR) and the Nairobi-Mombasa Highway, the Olkaria SEZ will provide investors with seamless access to both local and global markets.
The Olkaria SEZ which hosts KenGen’s Green Energy Park is part of Kenya’s broader strategy to enhance industrial competitiveness by offering a conducive business environment with world-class infrastructure, reliable green energy, and investor-friendly policies. It aims to attract manufacturers, technology firms, and energy-intensive industries looking to capitalize on Kenya’s geothermal potential.
“Our Green Energy Park represents a transformative shift in Kenya’s approach to industrial development. By integrating clean energy solutions into manufacturing and industrial operations, we are not only reducing carbon emissions but also ensuring long-term sustainability and cost efficiency for businesses. This initiative aligns with our vision of making Kenya a top destination for investors seeking green energy-powered industrial operations,” said Eng. Peter Njenga.
According to KenGen, the park is expected to attract industries such as Agro-processing and companies seeking sustainable and cost-effective power for food processing and value addition, textile and apparel manufacturing, electric mobility production, Data centers and ICT firms, all looking to transform their businesses into fully sustainable, green-powered enterprises.
“With industries globally transitioning to net-zero operations, the Olkaria SEZ offers an ideal platform for businesses looking to integrate renewable energy into their production processes. By directly connecting industries to geothermal energy, we are not only lowering operational costs but also reinforcing Kenya’s leadership in green industrialization,” said Eng. Njenga.
With government backing, private sector interest, and KenGen’s commitment to providing reliable clean energy, the Olkaria SEZ is set to become a cornerstone of Kenya’s industrialization strategy. The first phase of investor engagement has already begun, with several multinational firms expressing interest in setting up operations within the SEZ.
Author: Bryan Groenendaal
