Kenya lays ground for first green fertilizer plant

Kenya advanced its push for clean industrialization on Monday with the groundbreaking of a landmark green fertilizer plant developed in partnership with China.

Unlike conventional fertilizer facilities that rely on fossil fuels, the new plant will tap steam from geothermal wells to power production and manufacture ammonia-based fertilizer, making it the first of its kind in the country.

The planned 165-megawatt facility in Naivasha, Nakuru County, to be built by China's Kaishan Group, will produce up to 480,000 metric tons of fertilizer annually, securing a stable supply for Kenyan farmers and insulating the country from global price shocks.

Presiding over the ceremony, President William Ruto said the project will not only strengthen food security but also save billions in foreign exchange currently spent on fertilizer imports.

The plant is expected to cut more than 600,000 tons of carbon dioxide emissions every year — the equivalent of removing 130,000 petrol- and diesel-powered vehicles from the road — and create more than 2,000 jobs in geothermal, hydrogen and green industrial technology, Ruto said.

With an investment of $800 million, the project is forecast to generate more than $13 million in annual profits for Kenya and open new revenue streams from global carbon markets, he said.

"Green fertilizer will give Kenyan exports a competitive edge, open new markets for our agribusinesses and strengthen our position in global value chains."

The project stands as a flagship initiative in Kenya's drive toward green industrial transformation, Ruto said.

"For decades, our farmers, who are the cornerstone of our nation, have borne the burden of unpredictable fertilizer prices, supply shocks and global volatility. These challenges have inflated food costs, reduced yields and strained household incomes," he said.

Kenya remains heavily dependent on imported fertilizer, bringing in more than 600,000 tons in 2023 and another 443,000 tons worth nearly $463 million in the first half of this year.

"Each shipment represents a cost to our treasury and a lost opportunity for our people," Ruto said.

Reducing dependency

Tang Yan, general manager of Kaishan Group, said the new plant will produce more than 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 most environmentally friendly geothermal power plant in the world."

Opiyo Wandayi, Kenya's cabinet secretary for energy and petroleum, hailed the project as a continental first, saying it demonstrates that renewable energy can fuel both industry and agriculture.

Nakuru County Deputy Governor David Kones welcomed the investment, saying it will drive job creation and boost agricultural productivity in a region that relies heavily on farming.

"We are ready to support its success and we encourage more investors to tap into this region's geothermal potential," he said.

Tang said fertilizer production is scheduled to begin in October 2027.Ruto pledged to purchase the first 5,000 bags for his own farm — a gesture that drew applause from the crowd.

Farmer representatives at the event echoed the president's enthusiasm, saying they were eager to buy the locally produced fertilizer as soon as it becomes available.