Kenya leverages geothermal supply in newly declared Olkaria Special Economic Zone
KenGen's newest 83MW geothermal power plant, Olkaria I Unit 6 (source: KenGen)
Carlo Cariaga
28 Feb 2025
The Government of Kenya has declared Olkaria a Special Economic Zone, drawing industries to benefit from geothermal energy supply and other fiscal incentives.
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). With this designation, businesses and industries in the area can benefit from access to clean and affordable geothermal power, as well as other incentives like tax exemptions and infrastructure support.
The Olkaria Special Economic Zone spans approximately 8,292 acres and hosts KenGen’s Green Energy Park. Speaking on the designation, KenGen Managing Director and CEO, Eng. Peter Njenga emphasized that the abundant geothermal energy in Olkaria makes it ideal for industries looking reliable, low-cost, and green power. “This declaration cements Kenya’s commitment to industrialisation, job creation, and sustainability…. aligning with Kenya’s vision of becoming a global leader in renewable energy-driven industrialization.”
The Olkaria SEZ will support industries in green manufacturing, agro-processing, electric mobility, and data centres, among others. 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.
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.
Source: KenGen
