The government, through the Ministry of Investments, Trade and Industry, has officially designated Olkaria in Naivasha as a Special Economic Zone (SEZ).

This is seen as a strategic move to align Kenya’s interest in becoming a regional industrial growth hub through the provision of geothermal energy. The Olkaria SEZ, located in Nakuru, spans 8,292 acres and has become a prime spot for local and international investors.

Olkaria SEZ is set to catalyse industrial investment, green energy manufacturing and increase export-driven production. Firms who set up operations around Olkaria will enjoy benefits such as tax exemptions, modern infrastructure and access to affordable geothermal power.

KenGen’s Managing Director and CEO, Peter Njenga remarked that the SEZ was an important milestone in Kenya’s economic progress and transition to renewable energy.

He noted the abundant geothermal resources will offer industries a reliable source of affordable, sustainable energy.

Modern industries expected to be facilitated by Geothermal energy from Olkaria include green manufacturing, agro-processing, electric mobility and data centres.

“This announcement confirms Kenya’s dedication to growing industries, creating jobs, and protecting the environment. With plenty of geothermal energy, Olkaria is a perfect place for businesses that need steady, affordable, and clean power, supporting Kenya’s goal of becoming a world leader in green energy industries,” said Njenga.

This initiative aligns with the government’s Bottom-Up Economic Transformation Agenda (BETA) and Kenya’s vision for net-zero industrialization.

By virtue of its strategic position along major transport railway and road transport corridors, the SEZ will ensure businesses have smooth access to local and global markets.

The SEZ also features a Green Energy Park, which KenGen says will enhance Kenya’s competitiveness through investor-friendly policies and infrastructure that mitigates carbon emissions and promotes a steady supply of renewable energy.

As the demand for sustainable production rises worldwide, the park is setting Kenya up as a leading hub for industries powered by renewable energy.

“Our Green Energy Park marks a major change in Kenya’s approach to industrial growth. By incorporating clean energy into manufacturing and industrial activities, we are cutting carbon emissions while ensuring businesses remain sustainable and cost-effective in the long run. This initiative supports our goal of positioning Kenya as a leading destination for investors looking for green energy-powered industrial operations,” said Njenga.

“As businesses around the world work towards net-zero targets, the Olkaria SEZ gives them a chance to use renewable energy in their production processes. Connecting factories directly to geothermal power not only lowers costs but also strengthens Kenya’s position as a leader in green industrialization,” said Njenga.

Investor engagement is already in progress, and several multinational firms have shown interest in setting up operations within the zone.