Free Zone Africa
Interview with Dr. Kenneth Chelule, P.Eng.
Chief Executive Officer of Tech, FIET, EBS
Origin and strategy of the Free Zone
What were the main reasons for choosing Naivasha as the location for the Free Zone?
The choice of Naivasha was dictated by a combination of strategic factors. Its geographical position, in the center of the Great Rift Valley, offers privileged access to the main trade routes of Kenya and East Africa. Furthermore, its proximity to Nairobi allows us to benefit from the capital’s dynamism, while avoiding urban congestion. Finally, the availability of vast land areas and the presence of existing infrastructure made Naivasha an ideal site for the development of an SEZ.
How have the geographical location and the availability of geothermal energy influenced this decision?
Naivasha’s geographical location, with its proximity to important transport arteries and the Nairobi market, is an undeniable logistical advantage. But it is the availability of geothermal energy from the Olkaria plants that has really made the difference. This clean and abundant energy source not only reduces operating costs for businesses, but also allows us to attract companies that place a strong emphasis on environmental sustainability.
What were the main difficulties encountered during the planning phase and what solutions were adopted?
The planning phase was complex, especially regarding the development of the infrastructure necessary to support industrial activities. We had to face challenges related to road construction, energy and water supply, and the creation of telecommunications networks. To overcome these difficulties, we adopted a collaborative approach, working closely with the Kenyan government and local authorities.
Company participation and sectors involved
Which economic sectors are most represented in the Free Zone?
The sectors most represented include manufacturing and logistics. We are also trying to attract companies in the technology sector, leveraging the availability of geothermal energy to power data centers and other energy-intensive operations.
Are there incentives for companies that decide to establish their businesses in the SEZ?
Yes, we offer incentives to companies that invest in sustainable technologies. These incentives include tax breaks, simplification of bureaucratic procedures, and support for consulting services.
Which prominent companies, both nationally and internationally, have already taken part in the initiative and which new companies have recently joined?
The Naivasha Special Economic Zone (SEZ) is proving to be a pole of attraction for prominent companies globally. Microsoft has already formalized a collaboration agreement, recognizing the strategic potential of our SEZ in terms of sustainable energy and cutting-edge infrastructure. Furthermore, giants like Google and Amazon have expressed strong interest and are currently in the due diligence phase, a crucial step for their accession. We are optimistic that we will soon be able to welcome them into our community. I would also like to emphasize the recent issuance of a license to Omining, a company represented by Italian entrepreneurs, which is demonstrating remarkable entrepreneurial capacity and exceptional speed in realizing its project. I am sure that Omining’s positive experience can encourage other European companies to consider the Naivasha SEZ as a strategic investment opportunity.
Employment impact and indirect effects
What are the projections for staff expansion and what training plans are in place to improve local skills?
We anticipate significant staff expansion in the coming years, with the creation of thousands of direct and indirect jobs. To ensure that the local workforce has the necessary skills, we are collaborating with vocational training institutes and universities to develop specific training programs for the key sectors of the SEZ.
Competitive advantages and business attractiveness
What are the main advantages for companies that choose to settle in the Free Zone?
Companies that choose to settle in the Naivasha Special Economic Zone (SEZ) enjoy a series of competitive advantages. First, access to low-cost geothermal energy ensures a significant reduction in operating costs, especially for energy-intensive industries. Secondly, the Kenyan government has implemented very advantageous tax incentives, which make the SEZ an attractive option for national and international investors. But one of the most significant advantages is the presence of the Naivasha Dry Port. This intermodal terminal, connected to the port of Mombasa via the Standard Gauge Railway (SGR), acts as a strategic transfer point for goods, reducing transport costs and improving logistical efficiency.
Environmental sustainability and green energy
How is the use of geothermal energy managed and what are the observable environmental benefits?
Geothermal energy is managed through a network of production and distribution plants, which provide clean and constant energy to companies in the SEZ. The environmental benefits are evident: reduction of greenhouse gas emissions, less dependence on fossil fuels, and protection of natural resources.
Geothermal energy contributes substantially to electricity production in Kenya. In the 2020–2021 biennium, approximately 48% of all electricity generated in the country came from geothermal sources. According to data from the Energy and Petroleum Regulatory Authority (EPRA), geothermal energy represents the largest share in the country’s energy mix, at 48.4%.
What measures are taken to ensure long-term environmental sustainability?
We have adopted a series of measures to ensure long-term environmental sustainability, including the promotion of sustainable production practices, responsible waste management, and the encouragement of the use of clean technologies.
Are there ongoing research and development projects to further improve energy efficiency?
Yes, we are collaborating with research centers and universities to develop research and development projects aimed at improving energy efficiency and promoting the use of new sustainable technologies.
Infrastructure and support services
What type of infrastructure (logistical, technological, communication) is provided to companies?
The Naivasha SEZ offers world-class infrastructure. Logistically, the Naivasha Dry Port, connected to the Standard Gauge Railway (SGR), is a crucial hub for the transport of goods. We also provide modern roads, warehouses, and equipped industrial spaces. On the technological front, we guarantee high-speed internet connectivity, state-of-the-art data centers, and reliable telecommunications services. Furthermore, we are investing in renewable energy solutions, leveraging our abundant geothermal resource, to ensure a stable and sustainable energy supply.
What consulting, networking, and training services are offered to facilitate the establishment and growth of businesses?
We offer a full range of business support services, including legal advice, assistance with obtaining permits and licenses. We regularly organize networking events to connect companies with potential partners and customers.
Challenges and future perspectives
What are the main current challenges of the Free Zone and how are they addressed?
Among the main challenges is the need to attract investments in high value-added sectors and to ensure the environmental sustainability of industrial activities. To address these challenges, we are implementing targeted marketing strategies, offering incentives for companies that adopt clean technologies, and promoting collaboration with research centers and universities.
Economic impact and collaboration with the territory
How does the Free Zone contribute to regional and national economic development?
The Naivasha SEZ is an engine of economic growth for the region and the entire country. Through job creation, investment attraction, and the promotion of innovation, we contribute to increasing GDP, diversifying the economy, and improving the population’s standard of living.
Are collaborations planned with local entities, universities, and research centers to promote innovation?
Absolutely. Collaboration with local entities, universities, and research centers is essential to promote innovation and technology transfer. We have already started partnerships with several institutions to develop joint research programs, business incubators, and specialized training centers.
What role does the Free Zone play in enhancing Kenya’s image as a destination for foreign investments?
The Naivasha SEZ plays a crucial role in enhancing Kenya’s image as a destination for foreign investments. We demonstrate to the world that Kenya is a modern, dynamic, and future-oriented country, capable of offering unique and advantageous investment opportunities.
Government vision for industrial and free zones
What is the Kenyan government’s vision regarding the development of industrial zones and free zones?
The Kenyan government sees industrial and free zones as key tools to accelerate economic development, attract investments, and create jobs. The vision is to transform Kenya into a regionally and globally competitive industrial hub.
How does the Naivasha Free Zone fit into the national strategic plan for economic and industrial development?
The Naivasha SEZ fits perfectly into the national strategic plan, thanks to its emphasis on renewable energy, sustainability, and innovation. We are a model for the development of new-generation special economic zones, capable of attracting quality investments and promoting inclusive and sustainable economic growth.
Role of Nairobi and its connection with Naivasha
Considering its proximity to Nairobi, how does the Free Zone integrate into the broader economic and infrastructural context of the capital?
The proximity to Nairobi allows us to benefit from the capital’s dynamism, in terms of market access, logistics networks, and financial services. At the same time, the Naivasha SEZ offers a more efficient and convenient environment for businesses, thanks to lower energy costs and less congestion.
What benefits arise from being near a dynamic urban center like Nairobi, both in terms of market access and logistical and service networks?
The proximity to Nairobi allows us to attract companies that wish to operate in a dynamic urban environment, but that at the same time seek a more efficient and sustainable industrial environment. We benefit from access to a large consumer market, well-developed logistics networks, and advanced financial services.
Social and cultural aspects
How is the attraction of foreign investments in a region focusing on renewable energy perceived by the local population?
The local population perceives the attraction of foreign investments positively, especially because the Naivasha SEZ creates job opportunities and promotes sustainable development. We are committed to collaborating with local communities to ensure that the benefits of the SEZ are shared equitably.
What opportunities for training and professional development are available for Kenyan youth?
We offer a wide range of training and professional development opportunities for Kenyan youth, in collaboration with vocational training institutes and universities. Our training programs aim to develop the skills necessary for the key sectors of the SEZ, such as technology, renewable energy, and agro-industry.
Regional competitiveness
What are the main differences between the Naivasha Free Zone and other similar initiatives in East Africa?
The Naivasha SEZ stands out for its emphasis on geothermal energy, its strategic location, and its cutting-edge infrastructure. We are a model for the development of sustainable and regionally competitive special economic zones.
How does the project help strengthen Kenya’s position within the competitive regional context?
The Naivasha SEZ strengthens Kenya’s position as a logistical and industrial hub in East Africa. Through the attraction of investments and the promotion of innovation, we contribute to making Kenya a more competitive and attractive country for international investors.
Security measures for infrastructure and data
What security measures have been adopted to protect the Free Zone’s infrastructure, both physically and digitally?
We have implemented an integrated security system. Regarding data security, we use state-of-the-art encryption and firewall technologies, and we follow strict security protocols to protect sensitive company information.
Government policies and institutional stability
What specific policies has the Kenyan government implemented to promote a safe and stable investment environment?
The Kenyan government has implemented a series of policies to promote a safe and stable investment environment, including investment protection, simplification of bureaucratic procedures, and the fight against corruption. Furthermore, the government has invested in infrastructure and training programs to improve the skills of the workforce.
Risks and emergency protocols
What are the main threats (e.g., cyber-attacks, political instability, natural emergencies) identified and what emergency protocols have been established?
We have identified a series of potential threats, including cyber-attacks, political instability, and natural emergencies. To address these threats, we have established detailed emergency protocols, which include evacuation plans, emergency communication systems, and incident response procedures.