The Olkaria geothermal power hub, located near Naivasha, is on track to become Kenya’s 16th Special Economic Zone (SEZ), with plans to transform it into a regional industrial hub powered by renewable energy. The vast Olkaria SEZ, spanning 8,292 acres, aims to attract both local and international investors by offering incentives such as tax exemptions, infrastructure support, and access to cost-effective geothermal power.
The Ministry of Investments, Trade, and Industry has emphasized that the establishment of the SEZ will drive sustainable economic growth while aligning with the government’s commitment to net-zero industrialization. Positioned strategically along key transport corridors, including the Standard Gauge Railway (SGR), Olkaria serves as a vital link connecting Kenya’s Eastern and Western economic strongholds, thus enhancing regional trade and logistics.
KenGen CEO Peter Njenga noted, “Olkaria’s abundant geothermal energy resources make it an ideal location for industries seeking stable, low-cost, and environmentally friendly power.” Currently, Kenya derives around 40% of its electricity from geothermal energy, with KenGen overseeing all five power plants in the Olkaria region. Various sectors, including manufacturing (particularly textile and apparel), agro-processing, electric mobility, and data centers, can leverage this renewable power source to meet their green energy goals.
Moreover, the SEZ will be integrated with KenGen’s Green Energy Park, aimed at incorporating renewable energy into industrial operations to enhance energy efficiency and promote environmentally sustainable business practices. CEO Peter Njenga emphasized, “By directly connecting industries to geothermal power, we lower costs and reinforce Kenya’s leadership in green industrialization.”
With strong government backing and active private sector involvement, the Olkaria Special Economic Zone is poised to become a cornerstone of Kenya’s industrialization strategy. The initiative aligns with the vision of making Kenya a premier destination for investors seeking green energy-powered industrial operations.
This new development at Olkaria signifies a significant step towards sustainable economic growth and environmental conservation in Kenya. As the country continues to prioritize renewable energy sources and green industrial practices, the Olkaria SEZ is set to play a pivotal role in driving the nation towards a more sustainable and environmentally conscious future.
