Listed power generating company, KenGen, alongside China's Kaishan Group have broken ground on what they say will be the world’s first geothermal-powered green fertilizer plant in Olkaria, Naivasha.
- •The project will harness 165 megawatts of geothermal energy to produce up to 300,000 tonnes of ammonia-based fertilizer each year.
- •The plant, operated by Kaishan’s local subsidiary, Kaishan Terra Green Ammonia Limited, is designed to run entirely on renewable power.
- •It is projected to offset more than 600,000 tonnes of carbon emissions annually and generate about KSh 2 billion in yearly net profit for KenGen.
“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. By harnessing our geothermal wealth, we are lowering fertilizer costs, supporting our farmers, and contributing to global climate goals,” President William Ruto said during the inaugural event.
Beyond its environmental claims, the venture targets the country's deep dependence on imported fertilizer, which has made local farmers vulnerable to global price swings. Officials say the project could help stabilize input costs and reduce Kenya's import bill, while creating around 2,000 jobs across construction, operations, and supply chains.
Geothermal energy accounts for nearly 40% of Kenya's total energy mix making it one of the most dependable for cleaner industrial needs. In May this year, the company also announced plans to build a KSh 17 billion green hydrogen facility at Olkaria, backed by concessional German financing. The 100-megawatt project is part of Kenya’s Green Hydrogen Strategy, aimed at producing renewable hydrogen and ammonia for local fertilizer manufacturing and export.
KenGen has sought to diversify beyond electricity sales. These mega projects position the state-backed utility at the center of the region's green industrialization drive, ventures it believes will pay off immensely amid global climate sensitivity.
In its 2025 financial results, the company reported a 54% jump in after-tax profit to KSh 10.48 billion, driven by lower costs and improved operating efficiency. The board declared its highest dividend on record, signaling renewed investor confidence as Kenya’s largest power producer
