Kenya has unveiled the world’s first geothermal-powered fertilizer plant, marking a historic milestone in the country’s pursuit of clean industrialization and agricultural transformation.
The project, a collaboration between the Kenya Electricity Generating Company (KenGen) and China’s Kaishan Group, aims to revolutionize fertilizer production through renewable energy while bolstering Kenya’s food security and low-carbon manufacturing goals.
This innovative geothermal-powered fertilizer plant is set to change the landscape of agricultural production in the region.
The groundbreaking ceremony was held at Olkaria, Naivasha, and presided over by President William Ruto, who hailed the project as a “gamechanger” for both farmers and the economy. “By harnessing our geothermal wealth, we are lowering fertilizer costs, supporting our farmers, and contributing to global climate goals,” President Ruto said.
The geothermal-powered fertilizer plant represents a significant step towards reducing Kenya’s dependence on imported fertilizer and volatile international supply chains.
The facility will use 165 megawatts of geothermal energy supplied by KenGen over a 30-year period to produce between 200,000 and 300,000 tonnes of green fertilizer annually.
This will make Kenya the first nation in Africa and one of only a few globally to industrialize fertilizer production entirely through renewable energy.
KenGen’s Managing Director and CEO, Eng. Peter Njenga, described the initiative as a “milestone in clean industrialization,” noting that geothermal energy serves as “the bridge between Africa’s green energy potential and its manufacturing future.”
He emphasized that Kenya’s global leadership in geothermal development ranked among the world’s top ten producers, offers the country a unique advantage in pioneering low-carbon manufacturing models for the Global South.
The project is forecast to avoid more than 600,000 tonnes of carbon dioxide emissions annually while creating over 2,000 direct and indirect jobs.
Beyond environmental benefits, KenGen anticipates annual net profits of USD 13 million, driven by stable fertilizer prices and enhanced agricultural productivity.
The initiative is also expected to strengthen Kenya’s food system resilience and contribute to its broader Bottom-Up Economic Transformation Agenda (BETA), which prioritizes local value addition, job creation, and sustainable development.
President Ruto underscored that affordable, locally produced fertilizer will be key to boosting maize output and ensuring food security. “Our agriculture is highly dependent on fertilizer prices,” he said. “Domestic, competitively priced fertilizer matters not just for commerce, but for the food security of our people.”
Energy and Petroleum Cabinet Secretary Hon. James Opiyo Wandayi, who witnessed the signing of the agreement, said the Olkaria project represents “one of the most ambitious industrial decarbonization projects on the continent.”
The venture aligns with the Africa Green Industrialization Initiative, launched at COP28, which seeks to accelerate sustainable manufacturing across Africa through renewable energy and innovation.
The partnership also demonstrates Kenya’s growing appeal as a destination for sustainable foreign investment, as global markets shift towards low-carbon supply chains.
For China’s Kaishan Group, the collaboration highlights the growing role of technology transfer in accelerating Africa’s transition to clean energy and resource efficiency.
Kenya currently generates over 40% of its electricity from geothermal energy, the highest proportion of any country in Africa. The Olkaria geothermal fields have been at the heart of this success, powering homes, industries, and now, sustainable fertilizer production.
The new facility will utilize geothermal steam not only to produce fertilizer but also to manufacture green ammonia, further reducing carbon emissions and supporting the government’s climate commitments.
With fertilizer demand in Kenya projected to rise due to population growth and agricultural expansion, the new plant promises to provide a stable, affordable, and environmentally friendly supply chain for local farmers.
As the world grapples with the dual challenges of climate change and food insecurity, Kenya’s geothermal-powered fertilizer initiative could become a blueprint for sustainable industrial transformation in developing economies.
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