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China Backs Kenya’s First Geothermal-Powered Green Fertilizer Plant

Written By: Sino-Africa Insider
China Backs Kenya’s First Geothermal-Powered Green Fertilizer Plant

Kenya has officially broken ground on a landmark green fertilizer plant, backed by China, in Naivasha, Nakuru County – a major step toward combining clean energy and agricultural self-reliance. The facility, developed by China’s Kaishan Group, will use geothermal steam from Kenya Electricity Generating Company (KenGen) to produce low-carbon ammonia-based fertilizer.

With a capacity of 165 megawatts, the plant is expected to manufacture up to 480,000 tonnes of eco-friendly fertilizer annually – significantly reducing Kenya’s dependence on expensive fertilizer imports. During the ceremony, President William Ruto described the project as a “flagship” in Kenya’s transition to green industrial production, noting that it strengthens food security and helps the nation save billions in foreign exchange.

This $800 million project is projected to create more than 2,000 jobs, particularly in geothermal technology, green hydrogen, and industrial processing. Because it uses renewable geothermal energy instead of fossil fuels, the facility is expected to slash over 600,000 tonnes of CO₂ emissions annually – equivalent to taking around 130,000 gasoline cars off Kenyan roads.

The plant will run on a “closed-loop” system: non-condensable gases from geothermal steam will be captured and used for carbon dioxide in the fertilizer process, minimizing waste.

Beyond its environmental credentials, the investment will give Kenya a more reliable and affordable source of fertilizer, insulating farmers from volatile global prices. As Ruto emphasised, this will free up foreign exchange for other national priorities. KenGen, the national power company, expects to earn KES 1.7 billion (about US$13 million) annually from the plant under a 30-year partnership.

The facility is also slated to become a new source of revenue through carbon market participation, as the green production model aligns with global emissions-reduction efforts. Construction is expected to be completed by October 2027, with fermentation of operations to follow.

This green fertilizer plant is part of a pattern of deepening China-Kenya ties, especially in the clean economy. Chinese companies are already working in Kenya on agricultural technologies – from drought-resistant crops to bio-fertilizers.

In the energy sector, China has backed major infrastructure projects. For example, Kaishan previously invested in geothermal power: its Kenyan arm bought a stake in OrPower22, a company developing a 35 MW geothermal plant in Nakuru County.

These efforts align with Kenya’s broader green-industrial ambitions. The government’s green industrial park in Naivasha, also promoted to Chinese investors, is launching as a hub for renewable-powered factories.

This is more than a business deal – it’s a strategic pivot. For Kenya, it means securing fertilizer, creating jobs, and reducing its carbon footprint. For China, it’s a demonstration of how its investment model is changing: not just infrastructure, but sustainable industrial systems tailored for Africa’s future.

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