Kenya Opens the Door to SEZ Incentives at the Olkaria Green Energy Park
The new customs-controlled area designation gives businesses at the Olkaria Green Energy Park access to Special Economic Zone incentives and a clearer path for moving goods
Kenya’s effort to build an industrial base around geothermal energy has moved into a new phase after the Olkaria Green Energy Park received customs-controlled area status, clearing a key administrative hurdle for companies planning to establish operations within the zone.
The designation, granted to KenGen Energy Services (SEZ) Limited through Gazette Notice No. 8412 dated June 5, places the Naivasha-based development within the customs framework applied to Special Economic Zones. The approval allows businesses operating inside the park to access incentives and customs procedures available under Kenya’s SEZ regime.
For investors evaluating manufacturing and export projects, the change brings a defined system for moving equipment, raw materials and finished products through the zone. Cargo entering or leaving the area will be handled through designated customs channels governed by the East African Community Customs Management Act.
The development strengthens a broader strategy by Kenya Electricity Generating Company (KenGen) to attract industries that require large and continuous power supplies. Rather than focusing solely on electricity generation, the state-owned company has increasingly positioned Olkaria’s geothermal resources as the foundation for industrial activity.
KenGen says companies have already committed to projects spanning data infrastructure, green fertiliser production, electric mobility, logistics, steel fabrication and manufacturing. Those investments are expected to rely on geothermal baseload power, a resource that provides uninterrupted electricity and remains one of Kenya’s most significant energy advantages.
The customs approval also reduces uncertainty that can accompany newly established economic zones. Investors considering long-term industrial projects typically require clarity on taxation, import procedures and regulatory oversight before committing capital, particularly in sectors with high upfront infrastructure costs.
Located within Kenya’s geothermal corridor, the Green Energy Park has been developed to accommodate industries seeking access to renewable energy, industrial land and water resources within a single location. The project forms part of national plans to expand manufacturing output, increase exports and attract investment linked to low-carbon production.
Demand for cleaner industrial supply chains has grown across global markets as companies face pressure to reduce emissions associated with manufacturing and logistics. Kenyan policymakers view geothermal-powered industrial development as an opportunity to position the country within that transition while creating new production capacity closer to export markets.
With the customs framework now in place, attention is likely to shift toward the pace of investor implementation, construction activity and the scale of industrial output eventually generated from the Olkaria site.
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