KenGen unveils the continent’s first geothermal-powered industrial city
Sponsored by KenGen
President William Ruto is received by KenGen Managing Director and CEO, Eng Peter Njenga, at Olkaria, Naivasha, during the ground-breaking ceremony for the Kaishan Olkaria Green Fertilizer Plant at KenGen Green Energy Park on November 3, 2025.
By Pauline Kairu
Kenya has taken a decisive step toward becoming Africa’s green manufacturing leader with the roll-out of the KenGen Green Energy Park, a 3356 hectares industrial complex in Olkaria that will run entirely on geothermal power.
Touted as Africa’s first fully integrated geothermal-powered industrial ecosystem, the project is expected to stimulate new manufacturing growth, attract foreign investment, and unlock the vast commercial potential of the geothermal-rich Rift Valley.
Positioned inside the Olkaria fields in Naivasha – home to one of the world’s largest geothermal reservoirs – the park will offer investors uninterrupted 100 percent renewable energy, full Special Economic Zone (SEZ) benefits, and direct access to geothermal steam, brine, and raw water. Together, these incentives form one of the most competitive industrial value propositions on the continent.
“This industrial park represents a transformative opportunity for Kenya’s industrialisation journey,” says KenGen Managing Director and CEO Eng Peter Njenga. “By leveraging our geothermal resources, we are creating an environment where businesses can thrive while contributing to sustainable development.”
The project aligns closely with the Government’s Bottom-Up Economic Transformation Agenda (BETA), which positions manufacturing as a key driver of job creation and GDP growth. Its SEZ status unlocks tax incentives, streamlined licensing, and preferential treatment for export-oriented industries. “It ensures that manufacturing becomes a key driver of economic growth and job creation for all Kenyans,” adds KenGen Board Chairman Hon Alfred Agoi.
Kenya Electricity Generating Company (KenGen), which produces over 60 percent of Kenya’s electricity – 93 percent from renewable sources – is developing the Green Energy Park in four phases to be completed by 2045. This long-term investment will transform Olkaria from a purely energy-producing zone into a fully-fledged green industrial city.
At a time when global manufacturers are seeking clean, reliable, and low-cost energy, Olkaria offers a rare advantage: Industrial-scale geothermal power directly at the factory gate. Kenya is already among the world’s leading geothermal producers, and the park builds on this strength to position the Rift Valley as a continental hub for energy-intensive industries.
The park specifically targets manufacturers requiring heavy and stable energy loads. Still, it will accommodate light manufacturing, warehousing, logistics, and technology-led enterprises such as cloud computing facilities, research centres, and innovation campuses. By clustering these diverse sectors within a single renewable-energy ecosystem, KenGen aims to create an integrated, export-ready hub serving both domestic and international markets.
Investors will benefit from a package rarely available elsewhere in Africa: 100 percent renewable electricity, subsidised industrial tariffs, direct geothermal steam for process heating, geothermal brine for industrial use, and a dependable supply of raw water. This combination positions Olkaria as one of the region’s most cost-efficient and stable production environments.
Spanning 3356 hectares, the park is being master-planned as a modern green industrial city featuring zones for heavy and light industry, steam-intensive operations, and logistics hubs. It will also include technology campuses, Tier III and IV data centres, administrative complexes, and commercial amenities. Hospitality facilities, research and development hubs, and recreational areas will make the park a self-contained ecosystem where manufacturing, innovation, and business services coexist.
The inclusion of geothermal-cooled data centres signals a strategic push beyond traditional manufacturing into high-tech infrastructure. With surging global demand for green cloud computing, Olkaria offers data centre operators significant cost and carbon advantages compared to fossil fuel-reliant sites elsewhere on the continent.
Strategically located just 130km from Nairobi, the park enjoys strong logistical connectivity through the Standard Gauge Railway, key national highways, and dedicated access roads linking it to the ports of Mombasa and Lamu. Its proximity to Jomo Kenyatta International Airport and the Naivasha Inland Container Depot further strengthens the site’s role within East Africa’s industrial and export corridors.
Despite its long-term timeline, the park has already attracted major investors. KenGen has secured three anchor clients. They are Konza Technopolis Development Authority and ECO Cloud, which plan to build a geothermal-powered data centre; Kaishan Group of China, which will establish a green fertilizer production plant using geothermal steam and brine; and AquilaStar Corporate Investment Company, which intends to set up an electric vehicle assembly facility.
KenGen Chairman, Hon Alfred Agoi Masadia, exchanges an MoU with Abdulatif Alsayegh, Group Chairman of Alsayegh, during the ground-breaking of the AquilaStar-backed EV manufacturing plant at the Olkaria Green Energy Park in Naivasha.
The ground-breaking for the AquilaStar-backed EV manufacturing plant at the Olkaria Green Energy Park, Naivasha.
Additional firms are in the pipeline, signalling strong global appetite for low-carbon manufacturing destinations.
Beyond industry, the Green Energy Park is expected to generate wide-ranging economic benefits through tourism.
The Olkaria geothermal landscape – famous for Hell’s Gate National Park, geothermal spas, and panoramic Rift Valley views – is already a popular attraction. The park’s visitor centres, hospitality offerings, and educational tours will deepen Naivasha’s appeal as both a business and leisure destination.
Visitors will be able to explore geothermal features, tour innovative green factories, and enjoy eco-friendly hospitality experiences. This blend of industry and adventure is expected to strengthen local economies and create new income streams for surrounding communities.
KenGen, with its installed capacity of 1,785MW across hydro, geothermal, and wind resources, remains central to Kenya’s clean-energy transition. The Olkaria project elevates the company beyond electricity generation, into a direct driver of industrial and economic transformation.
The Green Energy Park represents one of the boldest attempts to embed renewable energy at the core of Africa’s manufacturing growth. As global companies face increasing pressure to decarbonise supply chains, Olkaria positions Kenya as a destination where firms can dramatically reduce emissions without compromising industrial efficiency. In doing so, the park signals a new era of green, resilient, and investment-ready industrial development for Kenya and the broader continent.
