Agri-Business Boom in 500 with New Processing Plant in Nairobi

Kenya is set to become the first African country to produce fertilizer using clean geothermal energy following a landmark agreement between the Kenya Electricity Generating Company (KenGen) and China’s Kaishan Group. Announced on November 3, 2025, the deal will see the construction of a state-of-the-art green fertilizer plant at the KenGen Green Energy Park in Olkaria, Naivasha. The facility, to be operated by Kaishan Terra Green Ammonia Limited, will utilize 165 megawatts of geothermal power to produce between 200,000 and 300,000 metric tons of fertilizer annually over a 30-year period. This initiative marks a significant stride in Kenya’s transition to sustainable industrialization and energy-driven agriculture.
President William Ruto welcomed the agreement as a major milestone in Kenya’s green growth agenda, highlighting its potential to reduce fertilizer costs and boost agricultural productivity for millions of farmers. Kenya is not only a leader in clean energy generation but is now taking bold steps to add value through green manufacturing, Ruto said. The announcement came as KenGen reported strong financial results for the fiscal year ending June 2025, with net profit soaring by 54 percent to KSh 10.48 billion ($81 million), driven by efficiency gains and optimized operations. The state-owned company, which boasts an installed capacity of 1,786 MW—mostly geothermal—generated 8,482 gigawatt hours (GWh) of electricity during the period, reflecting its robust position in East Africa’s renewable energy landscape.
The new fertilizer plant is part of KenGen’s broader G2G 2034 strategy aimed at expanding renewable energy capacity and diversifying revenue sources. Ongoing projects totaling 253 MW and regional ventures in Tanzania underscore the firm’s ambition to become a regional leader in clean energy solutions. By tapping into geothermal power, Kenya hopes to reduce reliance on imported fertilizers, lower production costs, and promote environmentally responsible agriculture. Industry experts say the project could transform Kenya into a hub for green industrialization in East Africa, supporting both economic growth and climate action goals as the country strengthens its renewable energy-driven development model.