The Kenya Revenue Authority (KRA) has declared an industrial park owned by power producer Kenya Electricity Generating Company (KenGen) in Naivasha a customs-controlled area, unlocking tax breaks for businesses setting up shop within the facility.
The KenGen Green Energy Park, which is situated within the Olkaria geothermal field, was designated a customs-controlled area on June 5, 2026.
Firms in customs-controlled areas enjoy tax breaks extended to businesses in Special Economic Zones (SEZs), such as not being required to register for value-added tax (VAT). The supply of goods or taxable services to an SEZ is also zero-rated.
Additionally, the firms operating from these bases enjoy a reduced corporate tax rate of 10 percent in the first 10 years of operations. They are also exempted from all duties and taxes payable under the Income Tax Act and the East African Community Customs Management Act.
Five investors, including steel fabricator Synergetic Development Group, Konza Technopolis, Kaishan Group and electric vehicles assembler, AquilaStar, have already signed deals to set base in the facility.
The Green Energy Park was declared a SEZ last year and is an integral part of KenGen’s revenue diversification push.
Additionally, it is also key in Kenya’s quest to attract foreign investors and create jobs.
“The gazettement of the KenGen Green Energy Park as a customs-controlled area is the operational key that turns our vision into reality. The designation under Kenya Gazette Notice No.8412 unlocks the full SEZ investment framework at Olkaria, cementing the park as Africa’s foremost geothermal-powered industrial hub,” Peter Njenga, Chief Executive at KenGen, said on Wednesday.
Other benefits extended to businesses in customs-controlled areas include work permit facilitation for a defined number of foreign workers and protection and repatriation of profits.
The incentives and benefits woo the investors by lowering the costs they incur to set up and run the businesses, with the ultimate goal being attracting more investors to increase our exports and also create jobs.
The Green Energy Park sits on an estimated 845 acres and is one of the over 25 SEZs gazetted in Kenya. Others are Dongo Kundu SEZ, Naivasha Special Economic Zone, Konza Technopolis and Mombasa Industrial Park.
There are also private SEZs in the country, and these include Tatu City SEZ, Two Rivers International Finance and Innovation Centre SEZ, Northlands SEZ and the East Africa Free Zone SEZ.
SEZs have emerged as a strong selling point that Kenya is using to attract investors and boost efforts to create jobs and address the unemployment crisis.
KenGen is betting on the green park as a major plank of its diversification strategy as the company seeks to remain on the profitability path.
The State-owned electricity producer’s net profit for the half-year to December 2025 dipped to Sh4.22 billion from Sh5.29 billion a year earlier despite increased electricity sales to Kenya Power.
KenGen attributed the 25.3 percent dip in net profit to a higher tax bill and an increase in reimbursable costs like fuel and water.
