Aquilastar Corporate Investment, with the support of a United Arab Emirates investor, has begun the construction of a KES 19.37 billion ($150million) Electric Vehicle (EV) assembly plant at Olkaria, Naivasha.
The plant will sit within Kenya Electricity Generating Company’s (KenGen) 845-acre Green Energy Park at the Olkaria Geothermal field. According to KenGen Chairman Alfred Agoi, seven investors have shown interest in the industrial park. Agoi said that affordable and reliable power is one of the key incentives for investors. Aquilastar is looking forward to capitalising on the clean, reliable, and affordable power available at the park.
The industrial park, which has been designated as a Special Economic Zone (SEZ), will also host non-industrial activities such as administrative and commercial uses, data hubs, offices, research and development centres, and hospitality.
Benefits of the Olkaria EV plant
During the groundbreaking event, Aquilastar Chairman Abdulatif Alsayegh said that the plant will produce up to 50,000 EV units annually. Additionally, it will be able to directly employ 3,000 Kenyans and generate another 10,000 indirect jobs, while developing a local supply chain for EV accessories.
Aquilastar Chief Executive Officer Barbara Modani Alwena said that the adoption of electric vehicles will allow Kenya to reduce its heavy reliance on fossil fuel imports. Kenya spends KES 600 billion to KES 700 billion every year on fossil fuel imports.
“This EV plant project is not just unveiling a new product but lighting up a bold vision for the future mobility, sustainability, and innovation in Kenya,” she stated.
KenGen During Aquilastar’s Groundbreaking
KenGen CEO Peter Njenga said that the EV plant would help drive Kenya’s industrialisation goals.
“This is not just breaking ground on a new plant. We are breaking ground on a new chapter of industrialisation on the continent. It is a chapter powered by clean energy, durable jobs, and local innovations,” said Njenga.
He also assured investors that KenGen is revamping its installations to ensure an uninterrupted power supply, with a target of generating 1,500 MW by 2034, of which 834 MW is expected to come from geothermal energy.
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