KenGen Secures Customs-Controlled Status for Olkaria Green Energy Park

Olkaria Green Energy Park has officially been designated a Customs Controlled Area under Gazette Notice No. 8412 in the operationalization of the Special Economic Zone (SEZ).

In a gazette notice dated May 28, 2026, KenGen stated that the designation, issued under the East African Community Customs Management Act, 2004, provides a structured customs framework governing entry, exit, cargo handling, and compliance within the area.

“PURSUANT to Section 12 of the East African Community Customs Management Act, 2004, the Commissioner of Customs and Border Control appoints the following, Customs Area its Entrance and Exit,” read part of the gazette notice.

KenGen Chief Executive Officer Peter Njenga described the gazettement as a transformative step in advancing the company’s vision of turning the Olkaria Green Energy Park into a geothermal-powered industrial hub.

“The gazettement of the KenGen Green Energy Park as a Customs Controlled Area is the operational key that turns our vision into reality,” said Peter Njenga.

KenGen Secures Defined Customs Framework for Olkaria SEZ Operations

Under the First Schedule of the Gazette Notice, M/s KenGen Energy Services (SEZ) Limited was appointed as a Customs Area covering approximately 1,825 hectares on L.R. No. 8396/4 and L.R. No. 8396/12.

The boundaries of the area are defined through precise geographic coordinates, formally mapping out the controlled industrial zone within the Olkaria geothermal region.

Additionally, the Second Schedule of the notice establishes official entry and exit points for the customs area.

These include designated coordinates marked CP 01, CP 02, CP 03, CP 04, and CP 05 within the SEZ layout plan, which has been deposited with the Commissioner of Customs and Border Control.

All movement of goods into, within, and out of the zone will now be regulated through these controlled access points.

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Benefits of SEZ Incentives to Investors

Following the designation, investors operating within the Olkaria Green Energy Park will now access tax and customs incentives provided under the Special Economic Zones Act, 2015.

Kenya Revenue Authority (KRA) will oversee customs operations within the zone, including monitoring cargo movement, enforcing customs procedures, and managing designated stations, bonded systems, and compliance mechanisms.

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Under the SEZ framework, licensed enterprises benefit from a range of incentives, including exemptions from stamp duty on business-related instruments, relief from certain county government fees such as business service permit fees, advertisement fees, and selected liquor licensing charges.

Therefore, this new status is expected to streamline import and export processes, reduce clearance times, and improve efficiency in cargo handling.

Investors will also benefit from duty and tax efficiencies on qualifying inputs, as well as simplified regulatory oversight factors that will reduce operational uncertainty often associated with early-stage SEZ implementation.

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