Affordable power; recipe of elevating Nakuru to energy, industrial hub

As devolution takes root, the focus in many counties rests on seeking business opportunities in different sectors. Governors have embarked on foreign trips to woo investors to their counties.

From Israel to USA, the governors have engaged potential investors and Nakuru County has not been left behind with projections that it could be the next hub of industries and energy within the region.

The county is home to geothermal power with Olkaria, Eburru, Longonot, Menengai and Suswa reservoir offering over 10,000MW of power. Plans are underway to source for more power from solar and biogas within the county with works in the latter at an advanced stage.

Already, the county is home to Gorge Farm Energy Park, the only plant of its kind in Africa that produces biogas energy. And Ubinnk East Africa in conjunction with Chloride Exide has been assembling solar panels at a subsidized rate in the county.

Various investors have shown interest in putting up various industries in the county because of affordable source of power. Kengen has set aside 1,300 acres for an Industrial park while a Chinese company has committed Sh40billion for a textile factory in the region.

According to an industrialist Adamson Muraguri, the cost of power has been the biggest challenge facing many investors. He says in some cases, the cost of power consume over 50 per cent of cost of production adversely affecting the profit margin.

Muraguri notes that with the upcoming power sources in Nakuru, the county could be the next hub of business and energy in the country. “The biggest challenge facing any growing nation is cost of power and with the upcoming power projects in Nakuru, this will be the next big thing for this county,” he says.

Nakuru Governor Kinuthia Mbugua is optimistic that the new sources of power will change the fortunes of the county. He says works in the 100MW solar power plant in Gilgil starts in a few months, an investor has been identified. The investor; East Africa Solar company, he notes has acquired land for the plant.

The plant; projected to be one of the biggest solar projects in the country will be in operation by the end of the year. He says it will not only offer cheap power but also employment to many. The governor says the county has set aside funds for the land that will host the Industrial Park expected to be home to many industries.

The county’s Chambers of Commerce chairman Kamau Njuguna notes that Nakuru will be the county to watch in the coming months. “Nakuru will be the next hub of energy not only in Kenya but in the continent,” he says.

Kengen Managing Director Albert Mugo says they are working with Export Processing Zone Authority in setting up an industrial park to offer subsidised power to factories. Mugo says a paper industry plant has expressed interest in establishing a factory in the zone due to the presence of steam power. “We have set aside 1,300 acres for the industrial park and apart from the paper factory there are Chinese investors keen to start a cotton processing mill,” he says. Already Kengen has embarked on a new technology of using well-head generators to pump in energy to the national grid. According to Kengen assistant manager Peter Ouma, the time used to drill, install and supply power to consumers will be reduced drastically under the new technology.

He says the technology is the first of it’s kind in the world and will accelerate green energy production which will lower the cost of power in Kenya. He notes that already 25.6MW has been injected to the national grid this year through the use of the new technology. This comes at a time when the first ever biogas power station in Africa is set to be complete by the end of the year with a power production of 2.8MW.

Works in the power station located in Naivasha are at advanced stages with projections that it will be using 130 tonnes of vegetable crop residual to produce power.

According to the operations manager Mike Nolan, the Gorge Farm Energy Park is owned by Kenyan investors who have pumped in nearly Sh510 million for the project. He says the plant will also produce fertiliser and carbondioxide which will be sold to flower farmers.

Nolan says plans are under way to construct a solar power station next to the biogas station next year expected to produce 10MW in the first year and rise to 100MW in three years.

The county is also set to benefit from a Sh40 billion textile plant courtesy of ongoing co-operation between Kenya and China. Jiangsu Lianfa Group will be based in Naivasha and is set to employ 30,000 workers.

According to the county’s CS for Industrialisation Aden Mohammed, once complete the textile factory will be one of the largest in the continent. President of the Chinese company Kong Xiang Jun says they are keen to establish a production line in Africa.