KenGen Green Energy Park Secures Zero Tax Incentives via Customs Controlled Area Status

The Olkaria Green Energy Park has crossed a major milestone with its official designation as a Customs Controlled Area. This activates zero tax and duty incentives under the Special Economic Zone framework for investors at the Naivasha site.

The Kenya Gazette Notice No. 8412, published on June 5, granted the status to KenGen Energy Services (SEZ) Limited. It operationalises the full suite of benefits available under the Special Economic Zones Act, 2015.

Investors now gain streamlined import and export procedures, duty exemptions and tax advantages on eligible inputs, faster cargo clearance, and simplified regulatory processes. The park functions as a distinct customs jurisdiction with bonded handling systems.

KenGen Managing Director and CEO Eng. Peter Njenga called the gazettement the key that turns the long-term vision into reality. He described the facility as Africa’s foremost geothermal-powered industrial hub.

Five investors have already committed to the park. Their projects cover data centres, green fertiliser production, electric mobility, steel fabrication, logistics and manufacturing. All rely on reliable geothermal baseload power from KenGen.

This combination of renewable energy, industrial land, water access and now zero tax incentives creates a compelling package. The timing matches growing global demand for low-carbon production environments.

Kenya’s abundant geothermal resources give the park a strong competitive edge. As supply chains place higher value on carbon credentials and energy stability, few African zones can offer similar conditions.

Njenga emphasised that global industries are actively seeking stable, low-carbon sites. The Olkaria park delivers precisely that.

The development forms part of Kenya’s strategy to build green industrial capacity. Its progress in Naivasha supports national goals for sustainable manufacturing, export growth and job creation.

Site works have advanced alongside the regulatory achievements. The new status now clears the way for accelerated tenant operations and full-scale industrial activity.

The built environment sector sees this as an important test for other SEZ projects. Effective delivery could boost Kenya’s appeal for green investment across East Africa.

Additional details on specific investor timelines and further incentives are expected as operations scale up. The focus remains on converting the policy breakthrough into actual industrial output and economic impact.