Work Begins on KenGen’s Sh100bn Green Fertilizer Plant

Kenya’s largest power producer, KenGen, has begun work on a Sh100 billion green fertilizer plant at Olkaria in Naivasha, marking a major step in the country’s clean energy transition.

The project, a joint venture between KenGen and China’s Kaishan Group, will tap 165 megawatts of geothermal power to synthesize green ammonia for conversion into fertilizer.

The KenGen Green Fertilizer Plant will use steam from geothermal wells to power production and manufacture ammonia-based fertilizer, making it the first of its kind in the country.

Kaishan’s local subsidiary, Kaishan Terra Green Ammonia Ltd, will build and operate the factory, while State-controlled KenGen will supply geothermal energy to run the facility for 30 years.

The factory is expected to produce 480,000 tonnes — more than nine million 50kg bags of reliable, low-priced fertilizer — annually once production begins in October 2027. 

This is expected to help lower the country’s billion-shilling fertilizer import bill.

The factory is also expected to cut more than 600,000 tonnes of carbon dioxide emissions every year — the equivalent of removing 130,000 petrol- and diesel-powered vehicles from the road.

It will also create jobs for residents.

“The project will create more than 2,000 jobs during the two-year construction period,” Dr Ruto said, adding that the factory will generate Sh1.7 billion in annual profits for KenGen.

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The KenGen Green Fertilizer Plant is expected to stabilize local fertilizer prices by easing forex pressure from imports, KenGen CEO Peter Njenga said, adding that geothermal power is the “bridge between Africa’s green energy potential and its manufacturing future.”

Reliance on imports makes fertilizer prices susceptible to global market shocks and supply chain disruptions — such as those caused by the Russia-Ukraine war — which drive up costs for local farmers.

Tang Yan, General Manager of Kaishan Group, said the new plant will produce 9.6 million bags of fertilizer annually, helping Kenya reduce its dependency on external suppliers.

“We will recapture the non-condensable gases in the geothermal steam to produce carbon dioxide, which will feed into the fertilizer plant,” he said.

“This means zero emissions from the geothermal power plant — no waste, no pollution — a closed system where everything has a purpose. It will be the most sustainable and environmentally friendly geothermal power plant in the world.”

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