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Grace Ashiru
Olkaria, a leading geothermal power hub near Naivasha, is set to be designated as Kenya’s 16th Special Economic Zone (SEZ), transforming it into a regional industrial hub powered by renewable energy.
Spanning 8,292 acres, the Olkaria SEZ is expected to attract both local and international investors through incentives such as tax exemptions, infrastructure support, and access to cost-effective geothermal power.
The Ministry of Investments, Trade, and Industry has highlighted that the SEZ will drive sustainable economic growth while advancing the government’s commitment to net-zero industrialization.
Strategically positioned along key transport corridors, including the Standard Gauge Railway (SGR), Olkaria connects Kenya’s Eastern and Western economic strongholds, enhancing regional trade and logistics.
“Olkaria’s vast geothermal energy resources make it an ideal location for industries seeking stable, low-cost, and environmentally friendly power,” said KenGen CEO Peter Njenga.
Kenya derives approximately 40% of its electricity from geothermal energy, with KenGen managing all five power plants in the Olkaria region. Companies in 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 commitments.
The SEZ will also be integrated with KenGen’s Green Energy Park, designed to incorporate renewable energy into industrial operations. This initiative aims to enhance energy efficiency while promoting environmentally sustainable business practices.
“By directly connecting industries to geothermal power, we lower costs and reinforce Kenya’s leadership in green industrialization,” said KenGen CEO Peter Njenga.
“This initiative aligns with our vision of making Kenya a top destination for investors seeking green energy-powered industrial operations,” he added.
With strong government support and active private sector involvement, the Olkaria Special Economic Zone is poised to become a key pillar of Kenya’s industrialization strategy.
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