Kenya’s Green Economy Gains Momentum as Sh19 Billion Electric Vehicle Plant Breaks Ground in Naivasha

Kenya’s ambition to lead Africa’s green industrial revolution has taken a major leap forward with the launch of a Sh19 billion electric vehicle assembly plant in Naivasha. The project, driven by UAE-backed Aquilastar Corporate Investment, is set to transform the country’s automotive and clean energy landscape by merging sustainable power with modern manufacturing.
The plant, located within the Kenya Electricity Generating Company’s Green Energy Park in Olkaria, will be powered entirely by geothermal energy. Once operational, it is expected to produce up to 50,000 electric and plug-in hybrid vehicles each year. According to the company, the facility will create 3,000 direct jobs and about 10,000 indirect ones, providing a major boost to the government’s job creation agenda and industrialisation goals.
During the groundbreaking ceremony, Aquilastar Group Chairman Abdulatif Alsayegh said the decision to invest in Kenya was influenced by the availability of reliable and competitively priced geothermal power as well as the government’s supportive policies on renewable energy and manufacturing. He noted that Kenya’s green energy ecosystem provides an ideal foundation for a future built on clean mobility and industrial innovation. “This investment goes beyond vehicle production. It represents a bold step toward shaping the future of mobility, sustainability and innovation in Kenya,” Alsayegh said.
Kenya Electricity Generating Company (KenGen) Chairman Alfred Agoi described the investment as a turning point for Kenya’s manufacturing sector. He said the company is proud to partner with investors committed to sustainability, adding that the new plant will help position Kenya as a leading hub for green technology in Africa. Agoi added that KenGen’s Green Energy Park, which spans more than 8,000 acres, has already attracted seven investors and continues to draw interest from companies seeking clean and affordable power. He said the Special Economic Zone status of the park ensures investors enjoy tax incentives, lower energy costs and access to consistent renewable energy, creating a business-friendly environment for industries focused on sustainability.
KenGen’s Commercial Services Manager Kibet Rono said the company is working to increase renewable energy generation by an additional 1,500 megawatts by 2034, most of it from geothermal sources. He said this expansion will ensure industries have access to stable and cost-effective electricity as the country moves closer to achieving its target of 100 percent renewable power by 2030. “This investment in Olkaria is part of Kenya’s larger effort to build a clean industrial base powered by green energy. Investors are assured of reliable, cost-friendly power all year round as we drive the country’s and Africa’s green industrialisation future,” Rono said.
Aquilastar’s Chief Executive Officer Barbara Modani Alwena said the new plant is expected to help reduce Kenya’s heavy dependence on fossil fuel imports. She noted that Kenya spends between KSh600 billion and KSh700 billion every year on imported petroleum products, and transitioning to electric mobility could significantly cut that expenditure. “This project is not just about unveiling a new product. It is about lighting up a bold vision for sustainable mobility and a cleaner, more resilient economy,” Alwena said.
KenGen Chief Executive Officer Peter Njenga said the new investment represents more than just another factory opening. He described it as a foundation for a new era of industrialisation that will rely on renewable power and local innovation. “We are not just breaking ground on a plant. We are breaking ground on a new chapter of industrialisation in Africa, one powered by clean energy, durable jobs and homegrown expertise,” Njenga said.
Nakuru County Executive Committee Member for Lands, John Kihagi, welcomed the development, saying it would bring significant economic benefits to the region. He said the county government will continue to support investors setting up operations in the Green Energy Park through infrastructure development and regulatory facilitation.
The EV plant is part of a broader effort by KenGen to create a fully integrated green industrial ecosystem at Olkaria. The park will host a variety of facilities, including data centres, research and development hubs, offices and hospitality establishments. Another major project planned for the park is a billion-dollar geothermal-powered data centre by G42, which will further enhance the area’s status as a hub for clean technology investment.
Kenya’s steady progress in renewable energy and its growing capacity for industrial development have positioned it as a model for sustainable growth in Africa. The Aquilastar project demonstrates how foreign investment, clean energy and innovation can align to create a thriving green economy that benefits both people and the planet.
With geothermal energy providing a stable and cost-efficient power base, Kenya’s electric vehicle industry now has the potential to expand rapidly, opening doors for local manufacturers, suppliers and skilled workers. The success of this venture could redefine the country’s economic future, reduce carbon emissions and enhance its reputation as a leader in climate-smart industrialization.