Kenya Increases Economic Zones, Leveraging Olkaria's Geothermal Energy
The Olkaria Special Economic Zone (SEZ) in Kenya is set to revolutionise the nation's industrial sector, with a focus on renewable energy, particularly geothermal power. This strategic initiative aims to boost industrial growth, promote sustainability, and attract foreign investments.
Located in Olkaria, a geothermal power hub that is Kenya's 16th Special Economic Zone (SEZ), the zone benefits from an abundant supply of clean, affordable, and stable energy. Approximately 40% of Kenya's electricity comes from geothermal energy, with KenGen managing all five power plants in the Olkaria region.
The Olkaria SEZ spans 8,292 acres and is poised to become a key pillar of Kenya's industrialization strategy. With strong government support and active private sector involvement, it is expected to drive sustainable economic growth and advance Kenya's commitment to net-zero industrialization.
The zone offers significant investment incentives, such as reduced corporate tax rates, tax exemptions on capital goods, VAT zero-rating on exports, and duty-free import exemptions. These incentives, part of Kenya’s broader strategy to promote SEZs and export processing zones, foster a competitive environment for investors.
Moreover, the Olkaria SEZ benefits from strategic location along key transport corridors, including the Standard Gauge Railway (SGR), which enhances its attractiveness to investors. The SEZ will be integrated with KenGen’s Green Energy Park, designed to incorporate renewable energy into industrial operations, further lowering costs for businesses.
By focusing on renewable energy, the Olkaria SEZ reduces carbon emissions linked with industrial power consumption and supports Kenya’s commitments to clean energy transition. It also encourages sustainable industrial practices and community development by creating skilled jobs tied to green energy industries.
According to KenGen CEO Peter Njenga, Olkaria's vast geothermal energy resources make it ideal for industries seeking stable, low-cost, and environmentally friendly power. With the Olkaria SEZ, Kenya is positioning itself as a top destination for investors seeking green energy-powered industrial operations. This aligns with the vision of making Kenya a leading player in the global green industrialisation movement.
- The Olkaria Special Economic Zone (SEZ) in Kenya, given its location in a geothermal power hub and abundant clean energy supply, presents an attractive opportunity for industries focusing on sustainable-living and renewable energy, such as finance and business sectors looking to invest in home-and-garden or lifestyle industries.
- With Kenya's commitment to net-zero industrialization and the Olkaria SEZ's focus on reducing carbon emissions, energy industries investing in this zone can enjoy a competitive edge by demonstrating their dedication to environmentally friendly practices and supporting the global clean energy transition.
- As the Olkaria SEZ offers significant investment incentives like reduced corporate tax rates and VAT zero-rating on exports, it attracts businesses in various sectors, including energy, seeking a stable and affordable environment for growth and expansion, allowing them to thrive in the realm of sustainable-living.
