KenGen reveals industrial park plans

Kenya Electricity Generating Company. FILE PHOTO | POOL

Kenya Electricity Generating Company (KenGen) has set 2025 as the start date of constructing its Naivasha industrial park that targets large firms such as those producing fertilizer and steel, offering hope to the project that has been planned for years.

The firm says the project, which will sit on its 1,824 hectares of land in Olkaria Geothermal Hub in Naivasha, will now be implemented in phases.

KenGen has now submitted to National Environment Management Authority (Nema) the environmental impact assessment report as it gears to start the first phase after next year.

“The proposed masterplan is scheduled to be implemented in four phases of five years each with the initial phase anticipated to kick off in the year 2025,” says Nema in a notice inviting public comments on the project.

This means the project, whose planning started over eight years ago, will take 20 years to be completed, with the last phase being finished in 2045.

KenGen brief shows the park is anticipated to have industries including fertilizers, iron and steel, plastics and packaging, fabricated metal products, pulp and paper, wood and wood products and textiles and apparel.

Other industries viewed as steam-intensive and targeted by KenGen are Textiles and Apparel, Food and Beverages, food and beverages and warehousing and logistics.

KenGen in October 2014 opened the search for a consultant to undertake the feasibility study on the proposal including the preparation of a master plan and estimating costs of the infrastructural development.

The consultant was also to prepare the project’s implementation roadmap, institutional framework, marketing plan and financial model.

KenGen in February 2016, appointed a South Korean consultant to carry out a feasibility study for the project, which is estimated to cost $884 million (Sh113 billion) when completed.

The firm in June 2017 then opened the search for build-own-operate-transfer contractors for the project that will involve establishing the park, constructing manufacturing units, warehouses, and power plant and installation of steam generation facilities.

The industrial park will cater for both small, medium and heavy industries which will benefit from electricity provided by KenGen at an estimated tariff of Sh5 per kilowatt.

The firms, mostly industries with high energy needs, could see a relatively lower power bill as they will be getting power directly from the producer and in close proximity to the production plants thus lower transmission losses and distribution costs.

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