A few years ago, Maai Mahiu in Naivasha was little more than a dusty, semi-arid town dotted with thorny bushes, struggling to attract investors.
The town, named "hot water” after nearby springs, had long depended on sand harvesting, livestock trade, and small businesses to sustain its economy.
Despite being less than a two-hour drive from Nairobi, investors often bypassed Maai Mahiu, viewing it as economically unviable.
Once known primarily as a stopover for truck drivers heading to Western Kenya, the town also gained notoriety for its nightlife and a thriving commercial sex trade.
However, Maai Mahiu is now experiencing a transformation, thanks to the nearby multi-billion-shilling Naivasha Special Economic Zone (SEZ), a project spearheaded by the national government.
The SEZ is breathing new life into Maai Mahiu and its surrounding region. With Sh20 billion in funding from the African Export-Import (AfriExim) Bank, the project is rapidly shaping up, moving Kenya closer to realising a major industrial hub in East Africa.
The zone’s strategic location near key transport and logistics infrastructure—including the Standard Gauge Railway and the Naivasha Inland Container Depot—positions it as a gateway for trade across East and Central Africa.
Kenya Railways Corporation officials during a tour of the New Naivasha Standard Gauge Railway (SGR) and Metre Gauge Railway (MGR) link at the Naivasha Inland Container Depot (ICD) on January 17, 2022.
Photo credit: Dennis Onsongo | Nation Media Group
More than 20 investors have already lined up to set up operations in the zone, with expected investments exceeding Sh100 billion, according to Trade Cabinet Secretary Lee Kinyanjui.
“The Special Economic Zone Authority has allocated land to 11 investors, while about 10 others are pending approval. The government has introduced attractive incentives, including relaxed taxes and lower power tariffs, to accelerate growth, create jobs, and reduce the country’s import bill,” Mr Kinyanjui said during a site visit on Monday.
The government has also allocated an additional 5,000 acres of land to the already earmarked 1,000 acres to accommodate more investors.
Some of the companies that have already opened shop at the Naivasha SEZ include TAD Motors Electric Vehicle Assembly, Jumbo AAA Holdings Ltd (specialising in pre-owned vehicles imported from Japan), and Crystal Frozen and Chilled Foods Limited, a Sh 650 million potato processing plant.
The latter, the third of its kind after Egypt and South Africa, is expected to process one million kilograms of potatoes monthly, addressing market challenges for farmers in Nakuru, Nyandarua and neighbouring regions.
Kenya has also signed a memorandum of understanding with UAE’s G42 and Microsoft to develop the country’s first multi-billion-shilling data centre powered by geothermal energy from Olkaria. This 1GW mega data centre will be built within the economic zone under the EcoCloud-G42 partnership.
Other investors expected to set up operations in Maai Mahiu include a Japanese firm investing Sh13 billion in steam energy production from Olkaria and a Turkish SEZ Limited investing USD 760 million (Sh91 billion). Companies already issued licenses include Accurate Steel Mill Ltd, Jafro SEZ, Africa Global Logistics Ltd, Ceylon Energy Ltd, and TAD Motors SEZ Ltd.
Nakuru Governor Susan Kihika delivers her speech during the launch of the Nakuru County enterprise and co-operative revolving development funds at ATC Soilo on May 29, 2025.
Photo credit: Boniface Mwangi | Nation Media Group
Nakuru Governor Susan Kihika described the SEZ as a game-changer that will turn Nakuru into a major industrial hub in Kenya and East Africa.
“The funding is a major boost for operationalizing the Naivasha SEZ. Once fully operational, over 100,000 jobs will be created for locals and deserving youths,” she said.
The county boss urged local investors, including SMEs, to take advantage of the zone’s benefits which include cheaper geothermal power and favourable tax incentives.
Nakuru’s strategic location, good infrastructure, affordable geothermal power from Menengai and Olkaria, the upcoming Lanet airport and the SGR connecting Naivasha to the Mombasa Port are attracting both local and international investors.
The government has invested billions in infrastructure to accelerate development within the SEZ, including a Sh1 billion water project and a Sh154 million ultra-modern Level Four hospital. Residents of Longonot and Maai Mahiu will also benefit from subsidised water supply through kiosks along the main pipeline.
President William Ruto and then-Deputy President Rigathi Gachagua with Nakuru Governor Susan Kihika and other leaders at the commissioning of the Naivasha Special Economic Zone 90 MVA sub-station on January 13, 2024.
Photo credit: Boniface Mwangi | Nation Media Group
Recently, President William Ruto launched a 90 MVA power station to serve the SEZ and issued licenses to six investors across sectors including bottling, electric vehicles, logistics, power, steel and plant essence extraction. The project is expected to generate 2,486 jobs.
“By equipping our Special Economic Zones with clean energy and essential infrastructure, we aim to attract foreign direct investment, drive industrial growth, and enhance exports,” President Ruto said.
Once operational, factories within the Naivasha SEZ will export 70percent of their production, earning Kenya over USD 350 million (Sh42 billion) in foreign currency annually.
Last year, the SEZ received a further boost with a Sh295 million allocation alongside the Kenanie Leather Industrial Park and Athi River Textile Hub.
With affordable energy, strategic location, and significant government support, the Naivasha Special Economic Zone is poised to transform Maai Mahiu and the wider region into a thriving industrial powerhouse.
