Olkaria, Naivasha Constituency: Area Profile, Real Estate Market, and Infrastructure Development.

Olkaria, located within Naivasha Constituency in Nakuru County, has emerged as a significant economic hub in Kenya, driven by its abundant geothermal resources and recent infrastructure developments. This comprehensive report examines the area’s geographic and demographic characteristics, real estate market trends, and the transformative infrastructure projects reshaping the region’s economic landscape.

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Geographic and Demographic Overview.

Naivasha Constituency, home to Olkaria, is situated approximately 120km from Nairobi and has a population of about 224,141 people spread across approximately 425.48 square kilometers. The constituency sits at an altitude of 2,084 meters above sea level, with geographic coordinates of -0.7167 latitude and 36.4333 longitude. Olkaria is one of eight administrative wards in Naivasha Constituency, alongside Mai Mahiu, Viwandani, Naivasha East, Lake View, Bashara, Maela, and Hells Gate Ward.

The area’s electoral significance is notable, with Olkaria ward recording 11,138 registered voters according to electoral data. Currently, Naivasha Constituency is represented by Jayne Wanjiru Kihara of the United Democratic Alliance (UDA) party, who was elected in the 2022 general elections.

Naivasha Constituency boasts remarkable natural resources that contribute to its economic potential. These include Lake Naivasha, Mount Longonot, the Kikuyu Escarpments, Hells Gate National Park, and most significantly, the geothermal wells in Olkaria. These natural endowments have made the area a hospitality hub for both local and international tourists, while attracting substantial investments throughout the region.

Economic Activities.

The constituency’s economy is diversified across several sectors with significant activities including:

Agricultural pursuits such as beef and dairy cattle farming, poultry farming, greenhouse agriculture, horticulture, floriculture, pyrethrum farming, and vegetable cultivation (onions, cabbages, sukuma wiki, and various fruits).
Extractive industries including mining and quarrying operations.
Tourism and recreational activities centered around the area’s natural attractions.
Fishing in Lake Naivasha.
Real estate development and investment.
Geothermal energy production, which has become a defining economic driver for Olkaria specifically.

Real Estate Market Analysis.

Land for Sale by Oseriana Oserengoni Wildlife Sanctuary-Land Prices.

The real estate market in Olkaria and surrounding areas of Naivasha shows considerable variation in land prices based on location, size, and proximity to key amenities:

Premium lakeside property: 25 acres along Lake Naivasha and Moi South Lake Road is priced at KSh 25,000,000 per acre, reflecting the high value placed on waterfront access.
Large agricultural parcels: A 50-acre block in Ndabibi near the central shopping center with “clean freehold” title is listed at KSh 75,000,000 outright.
Mid-sized development land: 10 acres in Green Park Phase 2 near Nyati road, offering “spectacular views over Lake Naivasha,” is available for KSh 50,000,000.
Smaller residential plots: 1/8th acre plots in the Naivasha South Lake area are marketed at KSh 380,000 per month with flexible payment options and ready individual freehold titles.

In the broader Naivasha area, additional land offerings include:

Prime commercial/residential plots in Lakeview Estate for KSh 36,000,000.
5-acre parcels in Longonot with views of Mount Longonot and Lake Naivasha for KSh 12,000,000.
Roadside commercial property along the Naivasha-Maai Mahiu highway (3 acres) at KSh 19,500,000.

Property for Sale in Olkaria/Nakuru for Rent and Sale-Housing Market.

Housing options in Olkaria are limited but distinctive, with one notable listing featuring:

A four-bedroom double-story chalet with an additional two-bedroom wooden cottage set on 5.6 acres, priced at KSh 60,000,000.

This property exemplifies the high-end residential market segment in the area, which tends to focus on spacious properties with substantial land components rather than dense housing developments.

Accommodation options for visitors and temporary residents include several lodges and cottages in the vicinity, such as Amicus Choice Hotel, Eldama Lodge Longonot, and Eagles Lodge. The broader Naivasha area offers additional options like Tandala Cottage, Charming Cottage With Views Of Lake Naivasha, and Crescent Island Fish Eagle Cottage, which cater to both short-term tourists and longer-term stays.

Infrastructure Development.

Olkaria Special Economic Zone.

The most significant recent development for the region is the official designation of Olkaria as a Special Economic Zone (SEZ) by the Kenyan Government on February 28, 2025. This milestone aims to position Kenya as a regional hub for industrialization while leveraging the country’s world-class geothermal resources for sustainable economic growth.

Key features of the Olkaria SEZ include:

An expansive footprint spanning approximately 8,292 acres in Nakuru County.
Strategic positioning as a key driver for industrial investment, clean energy manufacturing, and export-oriented production.
Business incentives including tax exemptions, infrastructure support, and access to affordable geothermal power.
Preferential corporate tax rates: 10% for the first 10 years, 15% for the next 10 years, and 30% for subsequent years.

The SEZ is specifically designed to attract industries focused on:

Green manufacturing.
Agro-processing.
Electric mobility.
Data centers.
Textile and apparel manufacturing.
ICT companies.

Geothermal Power Expansion.

Olkaria’s identity is closely tied to its geothermal resources, and significant developments are underway to expand this capacity:

KenGen is planning to build the Olkaria VII Geothermal Power Plant at an estimated cost of Sh32 billion ($247,511,000).
The new 80.3 megawatt (MW) plant will increase KenGen’s installed geothermal capacity to 879.3MW from the current 799MW.
The company has set aside 19 wells to provide steam for the plant.
The project is expected to generate carbon credits worth up to $29,250,000 (Sh3.77 billion) annually.
The plant site is located within 220 meters of the southern boundary of Hell’s Gate National Park.

Naivasha SEZ Development Progress.

As of April 10, 2025, the broader Naivasha Special Economic Zone is rapidly taking shape:

14 investors have signed up to establish businesses in the zone.
The zone has been expanded from the initial 1,000 acres to 6,000 acres near the Inland Container Depot in Maai-Mahiu to accommodate more investments.
Jumbo Africa Auto Auction has already opened a car auction business for the Kenyan market and is eyeing expansion for the East African market.
Construction is ongoing at the site, with remaining investors expected to break ground by June 2025.
An estimated 8,000 jobs are projected to be created both directly and indirectly once companies become fully operational.

Transportation Infrastructure.

The strategic value of Olkaria and the broader Naivasha SEZ is enhanced by ongoing transportation infrastructure developments:

A key link road from the Naivasha SEZ to the Standard Gauge Railway-Metre Gauge Railway linkage is 80% complete at a cost of Sh1.2 billion, with completion expected within two months.
An ongoing Sh12 billion road project in nearby Gilgil is 17% complete.
The area benefits from its strategic location along key transport corridors, including the Standard Gauge Railway (SGR) and the Nairobi-Mombasa Highway.

Conclusion

Olkaria’s transformation from a primarily geothermal resource area to a designated Special Economic Zone represents a significant shift in its economic trajectory and development potential. The combination of abundant renewable energy resources, strategic location, and substantial government investment in infrastructure positions the area for substantial growth in the coming years.

For investors, the real estate market offers diverse opportunities ranging from high-value lakeside properties to more affordable residential plots, while the SEZ designation provides attractive incentives for industrial and commercial ventures. The continued expansion of geothermal power capacity further strengthens Olkaria’s position as a hub for green energy and sustainable industrial development.

As construction and development continue throughout 2025, Olkaria is poised to become an increasingly important economic center within Naivasha Constituency and a showcase for Kenya’s commitment to renewable energy-driven industrialization and economic growth.

Olkaria