KenGen and China’s Kaishan Group have broken ground on a landmark green fertilizer plant at Olkaria in Naivasha, marking a major step in Kenya’s push to expand clean-energy–driven manufacturing.
The facility, to be operated by Kaishan’s Kenyan subsidiary, Kaishan Terra Green Ammonia Limited, will use 165 MW of geothermal power supplied by KenGen to produce up to 300,000 tonnes of ammonia-based fertilizer annually. Government officials say production could scale higher as the project matures. Designed to run entirely on renewable energy, the plant is expected to cut more than 600,000 tonnes of carbon emissions each year, while KenGen projects annual net earnings of about US $15M from the venture.
President William Ruto, who officiated the groundbreaking ceremony, said the project highlights Kenya’s shift from simply generating clean power to leveraging it for value-added industrial production. He said the new plant will help shield the country from global fertilizer price swings, lower production costs for farmers, and reduce the national import bill. The project is also forecast to create roughly 2,000 jobs across construction, operations and supply networks.
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Green manufacturing strategy
Energy Cabinet Secretary Opiyo Wandayi said the plant demonstrates Kenya’s ability to channel renewable energy into industrial growth, calling it a key piece of the country’s evolving green manufacturing strategy. Kaishan Group general manager Tang Yan added that the company will integrate geothermal gases into the production process, positioning the facility as a “model of sustainable industrialization.”
The development comes as Kenya accelerates plans to build a green manufacturing hub at Olkaria. Earlier this year, KenGen announced a US $132M, 100 MW green hydrogen and ammonia project, backed by concessional financing from Germany, as part of the national Green Hydrogen Strategy.
Geothermal energy, which accounts for nearly 40% of the national electricity mix, continues to offer Kenya a stable foundation for industrial decarbonization. KenGen’s broader diversification efforts appear to be paying off: the company recently reported a 54% increase in after-tax profit to US $81M for the 2025 financial year, driven by efficiency gains and reduced operating costs. The board has since declared its highest dividend on record.
The Naivasha fertilizer project is now expected to become a flagship component of Kenya’s green industrialization agenda, positioning the country as a leading producer of renewable-power-based agro-inputs in the region.