NAIROBI, MONDAY, NOVEMBER 3, 2025: Kenya has launched the world’s firstgeothermal-powered green fertilizer project, in a groundbreaking partnership between the Kenya Electricity Generating Company PLC (KenGen) and China’s Kaishan Group Co. Ltd, signaling a new frontier in the continent’s clean energy and agricultural transformation.
Speaking during the groundbreaking event held in Olkaria Naivasha, H.E. President William Ruto said the project was going to support the growth of Agriculture and industrialization by lowering cost of input for local farmer. “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,” the President said adding, “By harnessing our geothermal wealth, we are lowering fertilizer costs, supporting our farmers, and contributing to global climate goals.”
The President went on to say: “our agriculture is highly dependent on fertilizer prices with high prices leading to decline in maize output nationally. As we know, maize is the staple crop that feeds millions of Kenyans. That is why domestic, competitively priced fertilizer matters not just for commerce, but for food security for our people.”President Ruto touted the project as a gamechanger saying it was going to create direct benefit to Kenyans. He said: “Beyond fertilizer and balance-of-payments improvements, this project will generate real opportunities on the ground. The partnership projects over 2,000 direct and indirect jobs in construction, operations, maintenance, supply chains, and services. These are not temporary handouts, they are career pipelines for electricians, plant operators, process engineers, logistics managers, lab technicians, and local suppliers.”
The agreement signed earlier with KenGen and witnessed by Energy and Petroleum Cabinet Secretary, Hon. James Opiyo Wandayi, marks one of the most ambitious industrial decarbonization projects on the continent. The first of a kind initiative aims to use geothermal steam to power the production of green ammonia and fertilizer, dramatically cutting carbon emissions and fertilizer import dependence across the Eastern Africa region. Under the agreement, Kaishan’s Kenyan subsidiary, Kaishan Terra Green Ammonia Limited, will construct and operate the facility using 165MW of geothermal energy supplied by KenGen over a 30-year period. The plant is expected to produce between 200,000 and 300,000 tonnes of green fertilizer annually, making Kenya the first nation in Africa, and among only a handful worldwide, to industrialize fertilizer production entirely through renewable energy.
The project is forecast to avoid more than 600,000 tonnes of carbon dioxide emissionseach year and generate more than 2,000 direct and indirect jobs. It will also deliver an estimated USD 13 million in annual net profits to KenGen, while stabilizing fertilizer prices for farmers and strengthening national food security. Speaking during the groundbreaking ceremony, KenGen’s Managing Director and CEO, Eng. Peter Njenga, described the partnership as a “milestone in clean industrialization,” noting that geothermal power is the “bridge between Africa’s green energy potential and its manufacturing future.” He added that Kenya’s leadership in geothermal development, already ranked among the world’s top ten producers, gives
it a unique advantage in pioneering low-carbon manufacturing models for the Global South.
The Olkaria project is aligned with the Government’s Bottom-Up Economic Transformation Agenda (BETA), which emphasizes local value addition, job creation, and food system resilience. It also forms part of the Africa Green Industrialization Initiative, launched at COP28 to accelerate green manufacturing across the continent. The project could set a precedent for other African nations seeking to couple renewable energy resources with industrial production. By converting geothermal heat, an abundant but underused resource, into a driver of agricultural self-sufficiency, Kenya may have offered a blueprint for the continent’s green growth.
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Note to Editor:
About KenGen
Kenya Electricity Generating Company PLC - KenGen is the leading electricity generation company in the Eastern Africa region with an installed generation capacity market share of
more than 60%. The company’s primary business is to provide safe, reliable, and competitively priced electric energy for the country in an environmentally friendly and sustainable manner while creating value for its stakeholders. Today, KenGen PLC has an installed generation capacity of 1,786 MW, of which over 90% is drawn from green sources namely: Hydro (826 MW), Geothermal (754 MW), Wind (25.5 MW). The balance is from Thermal.
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