Once a vibrant, bustling industrial hub known for the Eveready battery brand among others, Nakuru over the past two decades witnessed a disturbing trend of grand industrial meltdown.
The devolved unit has, however, started rising again and regaining its industrial groove with several investors trooping to the region eyeing a piece of the pie in the county.
And in its quest to reclaim its yesteryear’s status as a vibrant commercial and industrial hub, Nakuru, which is home to Africa’s largest geothermal power plants located at Olkaria in Naivasha and Menengai, is banking on steam power to fuel its industrial revolution.
The region is already witnessing several multi-million-shilling projects coming up, in Naivasha and Nakuru towns.
Nakuru seeks to use geothermal energy to spur its industrial revolution at a time when the drive to turn Naivasha into a major economic hub in Kenya and East Africa is picking steam.
Already, over 50 local investors have expressed interest in setting up shop within the Naivasha Special Economic Zone.
Geothermal energy exploration
Smart Business established that various businesses including firms dealing in textiles, auto motives, gas, animal feeds, building and construction, mobile phones, foods and beverages, paper, hospitality among others have applied through the Nakuru department of trade, to take up space on the 50-acre piece.
In the wake of plans to construct an industrial park in Naivasha, Nakuru is now on the brink of experiencing major flows of new investments following an unprecedented boom in geothermal energy exploration and production.
The county government also targets key investments that would turn around fortunes and bolster the devolved unit’s revenue base, according to governor Lee Kinyanjui.
“Due to ongoing geothermal production, we are anticipating a boom in the geothermal industry in the county, which will in turn open some of the most exciting investment opportunities for investors. Various investors have shown interest in putting up industries in the county because of an affordable source of power. We want geothermal energy to support the economic fortunes of Nakuru,” said Mr Kinyanjui.
He added: “Nakuru is famed for tourism and flamingos, on top of that, we are rebranding ourselves as a geothermal energy economy.”
According to the Chamber of Commerce, Industry and Agriculture director in charge of East Africa, Njuguna Kamau, the cost of power has been the biggest challenge facing many investors in various parts of Kenya, but in Nakuru investors will access cheap energy.
Preferred investment destination
“Power consumes over 50 per cent of cost of production adversely affecting the profit margins of investments. Nakuru County will provide an opportunity for investors to access cheaper energy for their investments,” he told Smart Business.
East Africa Chamber of Commerce and Industry director representing Kenya, Mr Kamau Njuguna, says interest by investors is a clear indication that Nakuru is the most preferred investment destination in the country.
“Governor Lee Kinyanjui’s administration should use the goodwill by investors to fast-track the upgrade of infrastructure, health, and water services in the region as the demand for these services will peak in the next five years as more investors troop to Naivasha and other towns in the county,” said Mr Kamau.
Nakuru County executive in charge of Trade and Tourism Raymond Komen has now urged local businesses to take up space at the special economic zone, to enjoy favourable taxes and tariffs.
“We encourage local investors including small medium enterprises to take advantage of this opportunity and apply for space at the special economic zone, through the department of trade. The businesses at the Naivasha special economic zone will enjoy cheaper power to run their industries and pay favourable taxes,” said Mr Komen.
Some of the firms that want to set up base in the special economic zone include; Cactus Ventures, Digiera Logistics Enterprises Ltd, Mabati and Steel Enterprises, Buffloc Investment, Metro Contractors, Trigger Agencies and Suppliers Ltd and Sepima Ltd.
Naivasha economic zone
Others are Apex Resort, Kester Kenya Ltd, Barebone Company, Bahati Africa Ltd, Gatke International Ltd, Ng’awam Ltd, Bonzo Investment Ltd, Mwachecom General Construction Ltd, Kika One Sixty-Five Ltd, Regence Enterprises, Utugi Enterprises, Eserian Ltd and Donfab Enterprises Ltd.
Others based in Nairobi, but which are interested in expanding to Naivasha, are Marimo Construction Ltd, Enkavilla properties Ltd, Cool Breeze Gardens, Swing Valley Group, Pick and Go Ltd, Edge Advantage Ltd, Nyawawa Ltd, Tristesil Ltd and Enka Engineering Ltd.
Potential investors from Kiambu include Kereitta Enterprises Ltd, Cascade Company Ltd, K. Pipes and Fitting Centre Ltd and Thika View Service Station.
Companies that will be situated within the Naivasha economic zone will enjoy access to cheap geothermal power connected directly from the Olkaria geothermal power plant, infrastructure that will facilitate a wide range of activities such as storage, export and re-export, cheap Standard Gauge Railway transport to and from Mombasa port and special tax incentives-in line with provisions of the Fiscal Incentives Act, 2015.
Mr Komen revealed that the special economic zone will comprise more than six sections that will host affordable housing, commercial zones, hotels, shopping malls, light industries and petrol stations. BY DAILY NATION