• KenGen, Kaishan to build geothermal-powered green fertilizer plant in Kenya

• Plant to produce up to 300,000 tons annually over 30 years

• KenGen posts $81M profit, advances regional green energy expansion strategy
  

Kenya Electricity Generating Company (KenGen) announced on Monday, November 3, that it has signed an agreement with China’s Kaishan Group for the construction of a green fertilizer plant powered by geothermal energy from the Olkaria field.

The project, to be built at the KenGen Green Energy Park and operated by Kaishan’s local subsidiary, Kaishan Terra Green Ammonia Limited, is slated to benefit from 165 megawatts (MW) of geothermal capacity over a 30-year period. The facility is expected to produce between 200,000 and 300,000 metric tons of green fertilizer annually, making Kenya the first African nation to industrialize fertilizer production using clean geothermal power.

Kenyan President William Ruto hailed the deal, stating that by leveraging its geothermal energy, the country is reducing fertilizer costs, supporting farmers, and contributing to global climate goals. "Kenya is not only a leading producer and consumer of clean energy; we are now going further to create added value," he said.

The announcement coincided with KenGen’s strong financial results for the fiscal year ended June 30, 2025. The state-owned producer, listed on the Nairobi Securities Exchange, recorded a 54% increase in net profit, reaching 10.48 billion Kenyan shillings (KES), or approximately $81 million, up from 6.8 billion KES in 2024. The growth was attributed to increased operational efficiency and cost optimization.

With an installed capacity of 1,786 MW, mostly derived from geothermal sources, KenGen generated 8,482 gigawatt hours (GWh) of electricity in 2025, a 1% increase over 2024. The company is advancing its G2G 2034 strategy, which focuses on renewable energy development and revenue diversification through ongoing projects totaling 253 MW and a regional expansion initiative in Tanzania.

Leveraging its financial strength and geothermal expertise, KenGen aims to solidify its role as a catalyst for green industrialization in Kenya and East Africa, a region with persistent high demand for fertilizers.

Abdoullah Diop