Kenya Designates Olkaria a Special Economic Zone for Clean Energy

Kenya is taking a bold step toward green industrialization with the establishment of the Olkaria Special Economic Zone (SEZ)—the country’s 16th SEZ and a game-changer for industrial investment. Spanning 8,292 acres, Olkaria is set to attract both local and international investors by offering tax incentives, world-class infrastructure, and direct access to affordable geothermal energy. This initiative aligns with Kenya’s commitment to net-zero industrialization, reinforcing its position as a leader in sustainable economic development.

Strategically located near Naivasha, along major transport corridors such as the Standard Gauge Railway (SGR), Olkaria connects Kenya’s Eastern and Western economic regions, ensuring seamless trade and logistics. With abundant geothermal power—accounting for 40% of the country’s electricity supply—industries operating within the SEZ will benefit from low-cost, reliable, and renewable energy, making it an attractive hub for green manufacturing and technology-driven industries.

The Kenya Electricity Generating Company (KenGen), which operates all five geothermal power plants in the region, will directly supply energy to industries in the SEZ. This means companies in manufacturing, agro-processing, electric mobility, and data centers can significantly lower their operational costs while achieving their green energy commitments. This transition to clean, renewable power strengthens Kenya’s reputation as a global leader in sustainable industrialization.

The Olkaria SEZ will also be linked to KenGen’s Green Energy Park, an initiative that integrates renewable energy solutions into industrial operations. By reducing carbon footprints and increasing energy efficiency, businesses in Olkaria will not only contribute to economic growth but also lead the charge in eco-friendly industrial practices.

Government support and private sector engagement will be instrumental in making Olkaria a key pillar of Kenya’s industrialization strategy. As KenGen CEO Peter Njenga emphasized, connecting industries directly to geothermal power will lower costs and strengthen Kenya’s position as an investment destination for green industries. This initiative is a clear demonstration of Kenya’s ambition to drive industrial growth while preserving the environment.

With its strong policy framework, renewable energy advantage, and investor-friendly incentives, the Olkaria SEZ is poised to become a regional hub for sustainable industrialization. This is not just an economic milestone—it’s a step toward a greener, more resilient future for Kenya and Africa.

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