The Kenya Electricity Generating Company (KenGen) is set to earn an additional Sh1.8 billion annually in net profit from a new green fertilizer plant powered by geothermal energy at its Olkaria facility in Naivasha.
The project, spearheaded by Kaishan Terra Green Ammonia Limited, a subsidiary of China’s Kaishan Group, will utilize 165 megawatts (MW) of geothermal power supplied by KenGen under a 30-year agreement.
Once operational, the plant will produce between 200,000 and 300,000 tonnes of green fertilizer per year, making Kenya the first country in Africa — and one of only a few globally — to manufacture fertilizer entirely through renewable energy.
The project is expected to prevent over 600,000 tonnes of carbon dioxide emissions annually and create more than 2,000 direct and indirect jobs.
Speaking during the groundbreaking ceremony at Olkaria, President William Ruto said the initiative will lower input costs for farmers while promoting sustainable agriculture and industrial growth.
“This project shows that Kenya is not just a leading producer and consumer of clean energy — we are now going further to add value and generate prosperity from it,” Ruto said.
“By harnessing our geothermal wealth, we are lowering fertilizer costs, supporting our farmers, and contributing to global climate goals.”
The Head of State noted that fertilizer prices directly impact agricultural productivity, particularly in maize farming, which is central to Kenya’s food security.
“Our agriculture is highly dependent on fertilizer prices. High costs lead to reduced maize output, which affects millions of Kenyans. Domestic, competitively priced fertilizer is vital not just for commerce but for food security,” he added.
The Olkaria Green Fertilizer Project aligns with the government’s Bottom-Up Economic Transformation Agenda (BETA), which focuses on local value addition, job creation, and food system resilience. It also advances the Africa Green Industrialization Initiative launched at COP28 to accelerate green manufacturing on the continent.
KenGen CEO Eng. Peter Njenga hailed the partnership as a “milestone in clean industrialization,” saying geothermal energy is the bridge between Africa’s green potential and its manufacturing future.
“Kenya’s leadership in geothermal power gives it a unique advantage in pioneering low-carbon manufacturing models for the Global South,” he said.
