Kenya has launched an $800 million green ammonia fertiliser project to boost local production, cutting import costs, and strengthening national food security.
President William Ruto has broken ground for the landmark project, a joint venture between China’s Kaishan Group and the Kenya Electricity Generating Company Limited (KenGen).
The facility, located in Kenya’s Rift Valley, will be powered by 165 megawatts of geothermal energy, making it the first of its kind in Africa.
Once complete, the factory is expected to produce 480,000 tonnes of fertiliser annually, equivalent to more than 9 million 50-kilogram bags, helping to cushion farmers from volatile international prices.
“These challenges have inflated food costs, reduced yields, and strained household incomes,” President Ruto said. “Today’s event marks a decisive step toward self-sufficiency and resilience in fertiliser production.”
In 2023 alone, Kenya imported over 600,000 metric tonnes of fertiliser, while the first half of 2025 saw imports worth nearly KSh60 billion.
The new project seeks to drastically reduce these import bills and strengthen the country’s agricultural independence.
The President added that the project would prevent over 600,000 tonnes of carbon dioxide emissions annually, equivalent to removing 130,000 petrol cars from Kenyan roads.
It will also create more than 2,000 jobs during its two-year construction period, with priority given to local communities.
Energy Cabinet Secretary Opiyo Wandayi, Kaishan Group Managing Director Dr Yan Tang, and KenGen CEO Peter Njenga were among the key officials present at the groundbreaking ceremony.
According to the government, the project is not only commercially viable, expected to generate $13 million (KSh1.7 billion) in annual profits for KenGen, but also environmentally sound.
It will open up opportunities for carbon credit trading and enhance Kenya’s participation in global climate mechanisms.
“Green fertiliser will give Kenyan exports a competitive edge, open new markets for our agribusinesses, and strengthen our position in global value chains,” Ruto said.
The President described the initiative as a strong vote of confidence in Kenya’s investment climate and called on both Parliament and citizens to support the proposed National Infrastructure Fund and Sovereign Wealth Fund.
These instruments, he said, will help raise at least KSh4.5 trillion to finance future infrastructure projects in the energy, transport, and water sectors.
“It is no longer possible for us to borrow to build every project,” Ruto noted. “We must leverage private sector resources and act decisively to deliver a future of shared prosperity.”
Source: Capital News
Image Credit: The Star
