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Authentication can be set up in Strimzi Kafka by following the below steps:

1. Create a Kafka user and password file with the required credentials.

2. Create a Kafka resource and set the authentication parameters, such as the JAAS configuration, the SSL/TLS parameters, and the user and password file path.

3. Set up the Kafka clients to use the appropriate authentication credentials.

4. Update the Kafka cluster configuration with the new authentication settings.

5. Test the authentication by trying to connect to the Kafka cluster using the configured credentials.

Additionally, Strimzi Kafka supports multiple authentication methods such as TLS mutual authentication, OAuth 2.0, and SASL-based authentication mechanisms such as PLAIN and SCRAM. Depending on the use-case and underlying infrastructure, suitable authentication mechanisms can be selected and configured.