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New rail line could connect industrial zones in Olkaria with Nairobi

Olkaria I Geothermal Plant (Source: Toshiba Press Release)
Alexander Richter Alexander Richter 28 May 2015

To attract investors to set up industrial complexes at the specially designated zones near Olkaria, the government will offer them subsidised power tariffs.

Local news from Kenya state that the government has started negotiations with the company building the Standard Gauge Railway for the extension of the line from Nairobi to Naivasha after they complete construction from Mombasa to the capital city.

The extension of 120 kilometres will link special industrial zones that would be established at Naivasha, which is home to the Olkaria geothermal power plants to Nairobi and Mombasa.

To attract investors to set up industrial complexes at the specially designated zones near Olkaria, the government will offer them subsidised power tariffs.

Firms will also have their power connected directly from Olkaria to ensure uninterrupted supplies, and in some cases, companies -such as those dealing in apparel manufacturing – will be allowed access to steam.

The Government also plans to set up many industrial parks along the route of the SGR. Already, the Ministry of Industrialisation has identified land for setting up industrial parks in Mariakani, Voi, Naivasha, Athi River and Emali.

Industrialisation and Enterprise Development Cabinet Secretary Adan Mohammed said his ministry is already in talks with the owners of the lands near the train stations and expects that acquisition will be completed by within the next financial year.

At the meeting, which is held quarterly between the government and the Chinese company, President Kenyatta directed all ministries and agencies to ensure they play their role in ensuring that the construction of the SGR is not impeded.

“We must to everything in our power to ensure that the SGR is delivered on time and on budget,” President Kenyatta said. “There must be no laxity in terms of delivering what is one of our most transformational projects.”

President Kenyatta directed Cabinet Secretaries to take charge of resolving any issue that might delay the construction of the railway.

Some of the issues that the meeting agreed should be resolved before the next meeting in August include moving of power lines from the route of the railway line and issue of public facilities that might be affected by the line.

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Source: Capital News