Nairobi, Friday, February 28, 2025: The Government of Kenya, through the Ministry of Investments, Trade, and Industry, has officially declared the Olkaria area in Naivasha, a Special Economic Zone (SEZ). This milestone is set to position Kenya as a regional hub for industrialization while leveraging the country’s world-class geothermal resources for sustainable economic growth.

The Olkaria Special Economic Zone in Nakuru County spans approximately 8,292 acres and will serve as a key driver for industrial investment, clean energy manufacturing, and export- oriented production. By providing businesses with incentives such as tax exemptions, infrastructure support, and access to affordable geothermal power, the SEZ is expected to attract local and international investors seeking cost-effective, sustainable operations.

Speaking on the designation, KenGen Managing Director and CEO, Eng. Peter Njenga, emphasized the strategic importance of the Olkaria SEZ in Kenya’s economic transformation agenda and transition to clean energy.

“This declaration cements Kenya’s commitment to industrialisation, job creation, and sustainability. Olkaria’s abundant geothermal energy makes it an ideal location for industries looking for reliable, low-cost, and green power, aligning with Kenya’s vision of becoming a global leader in renewable energy-driven industrialization,” said Eng. Njenga.

According to the NSE-listed energy generator, the Olkaria SEZ will support industries in green manufacturing, agro-processing, electric mobility, and data centres, among others. The move aligns with the government’s Bottom-Up Economic Transformation Agenda (BETA) and Kenya’s commitment to net-zero industrialisation.

With its strategic location along key transport corridors, including the Standard Gauge Railway (SGR) and the Nairobi-Mombasa Highway, the Olkaria SEZ will provide investors with seamless access to both local and global markets.

The Olkaria SEZ which hosts KenGen’s Green Energy Park is part of Kenya’s broader strategy to enhance industrial competitiveness by offering a conducive business environment with world-class infrastructure, reliable green energy, and investor-friendly policies. It aims to attract manufacturers, technology firms, and energy-intensive industries looking to capitalize on Kenya’s geothermal potential.

“Our Green Energy Park represents a transformative shift in Kenya’s approach to industrial development. By integrating clean energy solutions into manufacturing and industrial operations, we are not only reducing carbon emissions but also ensuring long-term sustainability and cost efficiency for businesses. This initiative aligns with our vision of making Kenya a top destination for investors seeking green energy-powered industrial operations,” said Eng. Peter Njenga.

According to KenGen, the park is expected to attract industries such as Agro-processing and companies seeking sustainable and cost-effective power for food processing and value addition, textile and apparel manufacturing, electric mobility production, Data centers and ICT firms, all looking to transform their businesses into fully sustainable, green-powered enterprises.

“With industries globally transitioning to net-zero operations, the Olkaria SEZ offers an ideal platform for businesses looking to integrate renewable energy into their production processes. By directly connecting industries to geothermal energy, we are not only lowering operational costs but also reinforcing Kenya’s leadership in green industrialization,” said Eng. Njenga.

With government backing, private sector interest, and KenGen’s commitment to providing reliable clean energy, the Olkaria SEZ is set to become a cornerstone of Kenya’s industrialization strategy. The first phase of investor engagement has already begun, with several multinational firms expressing interest in setting up operations within the SEZ.

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Note to Editor:

About KenGen

Kenya Electricity Generating Company PLC - KenGen is the leading electricity generation company in the Eastern Africa region, with an installed generation capacity market share of more than 60%. The company’s primary business is to provide safe, reliable, and competitively priced electric energy for the country in an environmentally friendly and sustainable manner while creating value for its stakeholders.

Today, KenGen PLC has an installed generation capacity of 1,785MW, of which over 93% is drawn from green sources, namely Hydro (826MW), Geothermal (754MW), and Wind (25.5MW). The balance is from Thermal.

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Nairobi, Thursday, February 6, 2025: The Kenya Electricity Generating Company (KenGen) PLC, East Africa’s largest electricity producer, has reported a 79% growth in profit after tax for the six months ending 31st December 2024, accentuating the company’s resilience in a shifting energy landscape.

The NSE-Listed (KEGN) power producer posted a net profit of Ksh.5.30 billion, up from Ksh.2.96 billion in the same period last year, a gain primarily driven by aggressive cost-cutting measures and enhanced operational efficiencies.

At the same time, KenGen achieved a 49.4% increase in operating profit, reaching Ksh.6.65 billion from Ksh.4.45 billion in the previous period. This improvement was fueled by a 13.7% reduction in operating expenses, which fell to Ksh.17.67 billion from Ksh.20.47 billion. Revenues, on the other hand, remained stable at Ksh.27.5 billion.

“This performance is a testament to KenGen’s financial discipline and strategic focus on efficiency,” said Eng. Peter Njenga, the company’s Managing Director and CEO. “We are optimizing our assets, streamlining operations, and leveraging our leadership in renewable energy to drive long-term value for our shareholders and the country.”

The company’s finance income rose to Ksh.2.45 billion from Ksh.1.87 billion, augmented by higher returns on cash investments and a more stable Kenyan shilling. Meanwhile, finance costs dropped to Ksh.1.13 billion from Ksh.1.49 billion, reflecting improved capital management and debt optimization.

KenGen remains at the forefront of Kenya’s renewable energy transition, supplying 4,291GWh of electricity in the half-year period, up from 4,211GWh in the previous period. This increase was primarily supported by improved hydrology and availability of our generation fleet.

Looking ahead, KenGen is focused on expanding its renewable energy portfolio under its G2G 2034 Strategy, a long-term blueprint aimed at bolstering Kenya’s green energy transition. Between 2025 and 2027, the company plans to add 194.4MW of installed capacity across geothermal, hydro, and solar projects, along with 100MWh of battery energy storage to enhance grid stability.

With a strong balance sheet and a firm commitment to sustainability, KenGen is positioning itself as a key player in Africa’s clean energy future. However, the company’s Board has opted not to declare an interim dividend for the period, prioritizing reinvestment and long-term strategic growth to maximize shareholder value.

KenGen’s earnings per share (EPS) surged by 78% to Ksh.0.80, up from Ksh.0.45, reinforcing the company’s ability to create shareholder value in a dynamic energy market.

“We are driving the future of energy in Kenya,” said Njenga, adding: “Our commitment to operational excellence and innovation ensures that Kenyans will continue to benefit from reliable and affordable electricity for years to come.”

KenGen remains at the heart of Kenya’s transition to a low-carbon energy future, leveraging its geothermal stewardship and renewable energy expertise. With a resilient business model, strong financial fundamentals, and a clear vision for growth, KenGen is primed to play a catalytic role in shaping the future of Africa’s energy industry.

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Note to Editor:

About KenGen