Olkaria, a geothermal power hotspot near Naivasha, will become Kenya’s 16th Special Economic Zone (SEZ), positioning it as a regional hub for industrialization driven by renewable energy.
- The 8,292-acre Olkaria SEZ is set to attract local and international investors with incentives such as tax exemptions, infrastructure support, and access to affordable geothermal power.
- The Ministry of Investments, Trade, and Industry announced that the SEZ will promote sustainable economic growth alongside the regime’s goal in attaining net-zero industrialization.
- The region is also located along key transport corridors such as The Standard Gauge Railway (SGR) and is between Kenya’s Eastern and Western zones — connecting both regions’ economic strongholds.
“Olkaria’s abundant geothermal energy makes it an ideal location for industries looking for reliable, low-cost, and green power,” KenGen CEO Peter Njenga said.
About 40% of Kenya’s electricity is sourced from geothermal power by KenGen which operates all five power plants in the area. By tapping on the renewable power sources, companies — such as those in manufacturing (especially textile and apparel), agro-processing, electric mobility, and data centers — will honor their green energy commitments.
The development will also be linked to KenGen’s Green Energy Park, which integrates renewable energy into industrial operations. This aims to make businesses environmental friendly and more efficient in their power usage.
“By directly connecting industries to geothermal power, we lower costs and reinforce Kenya’s leadership in green industrialization,” Njenga noted.
“This initiative aligns with our vision of making Kenya a top destination for investors seeking green energy-powered industrial operations,” he added.
With government backing and private sector engagement, the OlKaria Special Economic Zone is set to become a cornerstone of Kenya’s industrialization strategy.
