Energy listed firm Kenya Electricity Generating Company (KenGen), in partnership with China’s Kaishan Group, has launched a geothermal-powered green fertilizer project, marking a major milestone in global decarbonization efforts.
The Olkaria-based project will use geothermal steam to produce green ammonia and fertilizer, reducing carbon emissions by more than 600,000 tonnes annually and cutting Kenya’s and East Africa’s reliance on imported fertilizer.
Speaking during the groundbreaking ceremony in Olkaria, Naivasha, President William Ruto said the project will create over 2,000 direct and indirect jobs across construction, operations, maintenance, supply chains, and related services. He added that the initiative will support agricultural expansion and industrialization by reducing input costs for farmers.
“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.” – HE Dr. William Samoei Ruto.
Under the agreement signed earlier, Kaishan Terra Green Ammonia Limited, a wholly-owned subsidiary of Kaishan Group, 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.
The mega project aligns with President Ruto’s Bottom-Up Economic Transformation Agenda (BETA), which prioritizes local value addition, job creation, and food system resilience.
KenGen CEO Peter Njenga hailed the collaboration as a landmark moment in clean industrialization, noting that the project positions Kenya as a pioneer in renewable-energy-driven fertilizer production in Africa.
Alongside the green fertilizer initiative, KenGen is developing a renewable energy pipeline totalling 252.8MW, anchored by flagship projects such as the 63 MW Olkaria I Rehabilitation, the 42.5 MW Seven Forks Solar Project, and the Gogo Hydro Power Plant Upgrade (8.6MW).
The company is also progressing the 58.42MW Wellhead Leasing Geothermal Project and the 80.3MW Olkaria VII Geothermal Power Project as part of its medium-term expansion strategy. These developments are expected to enhance Kenya’s clean-energy capacity, stimulate industrial growth, and support the country’s transition to a low-carbon future.
KenGen Plc FY2025 Results
The project is expected to boost KenGen’s annual net earnings by approximately USD 13 million (KES 1.7 billion). In the financial year ending June 30, 2025, KenGen reported a 54% jump in net profit to KES 10.5 billion from KES 6.8 billion in 2024, driven by operational efficiency, cost optimization, and increased electricity generation.
KenGen’s power output rose by 1.2% to 8,482 GWh in FY2025 from 8,383 GWh in FY2024 — the highest output in its history. The performance was supported by improved hydrology and the revival of the Muhoroni Power Plant. During the period, the company supplied 59% of Kenya’s electricity consumption.
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