KenGen signs deal for steel plant at Olkaria Green Energy Park

Kenya Electricity Generating Company (KenGen) has signed an investment agreement with Synergetic Development Group to establish a steel logistics hub and fabrication plant at the Olkaria Green Energy Park in Naivasha, marking the fourth industrial investment at the geothermal-powered facility.

The agreement was signed during the 2026 WRC Safari Rally at KenGen’s geothermal stage in Olkaria, where officials said the project signals growing investor confidence in the company’s clean energy offering.

Under the deal, Synergetic Development Group will develop an integrated logistics centre for steel products alongside a steel fabrication facility within the park.

The plant will operate using 18 megawatts of geothermal power generated from Olkaria’s geothermal fields.

The investor will also use about 10 acres of land within the park and approximately 360 cubic metres of water annually for its operations.

KenGen Managing Director and Chief Executive Officer Peter Njenga said the new investment reflects increasing interest among industrial players seeking reliable renewable power for manufacturing.

“The onboarding of Synergetic Development Group as our fourth investor at the KenGen Green Energy Park is a testament to the growing confidence that industry players have in our green energy offering,” Njenga said.

He added that KenGen is positioning geothermal energy not only as a power source for households but also as a catalyst for industrial development and job creation.

The steel facility is expected to support Kenya’s growing demand for construction materials while strengthening local supply chains tied to infrastructure development across East Africa.

Synergetic Development Group Chief Executive Officer Stephen Kiarie said the company plans to fast-track development of the project.

“With our expertise in project delivery in Kenya and across 14 countries in the region, we will hit the ground running to deliver this project on time and on budget,” Kiarie said.

KenGen officials say the steel project could create up to 150 direct and indirect jobs once operational.

The investment brings the number of companies operating within the Olkaria Green Energy Park to four, as KenGen continues marketing the site as a hub for energy-intensive industries seeking clean and affordable electricity.

Located within the Olkaria Special Economic Zone in Naivasha, the Green Energy Park is designed to host manufacturers that require large and stable power supplies.

The facility provides investors with direct access to geothermal electricity, land, and water within a single industrial ecosystem, reducing operational costs and carbon emissions.

KenGen says the park is part of the government’s broader plan to accelerate industrialisation under Kenya Vision 2030.

Other projects planned or underway at the site include green fertiliser production, electric vehicle assembly, and data centre infrastructure.

A $1 billion green data centre project backed by Microsoft and UAE-based AI firm G42 is also expected to be developed within the park.

KenGen says the 342-hectare facility is designed to host a mix of industrial and commercial developments, including research centres, offices, and innovation hubs powered entirely by renewable geothermal energy.

Kenya is among the world’s top geothermal energy producers, and officials believe leveraging this resource could give the country a competitive advantage in building low-carbon manufacturing industries.

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