President William Ruto on Monday oversaw the groundbreaking for Kaishan Olkaria Geothermal Power and Kaishan Olkaria Fertiliser plants in Nakuru County.
Accompanying the President for the commissioning of the project in Naivasha constituency was Energy Cabinet Secretary Opiyo Wandayi.
Chinese engineering company Kaishan Group Co. Ltd, through subsidiary Kaishan Terra Green Ammonia Limited, has signed a steam supply agreement with KenGen for a planned 165.4-MW geothermal power plant in Kenya which will produce 100,000 tonnes of green ammonia and green fertilizer annually.
Under the terms of the agreement, Kaishan will be constructing the power plant and will be receiving steam from KenGen’s operational geothermal fields.
The facility will use geothermal power for the production of
green ammonia, and subsequently, urea and calcium ammonium nitrate for fertilisers.
The KenGen-Kaishan Green Fertiliser Plant will produce up to 480,000 tonnes of fertiliser every year, guaranteeing farmers a steady and affordable supply.
Ruto said the project is a compelling example of how energy, technology, and vision can converge to drive national prosperity, create jobs, expand opportunity, and restore dignity to our people.
“For decades, our farmers, who are the cornerstone of our nation, have borne the burden of unpredictable fertiliser prices, supply shocks, and global volatility,” the President said.
He noted that in 2023 alone, Kenya imported more than 600,000 metric tonnes of fertiliser. In just the first half of 2025, he said Kenya imported 443,000 tonnes, worth nearly Sh60 billion.
The new project is part of Kaishan’s mission of becoming a “a major global player in green hydrogen and ammonia development and operations.”
The company states that although there are numerous green ammonia production projects utilizing solar and wind power generation in the pipeline, few have actually been launched.
This is because chemical production requires solar and wind power facilities to be augmented with energy storage. Both the technology and cost of energy storage remain bottlenecks for large-scale application.
The Kaishan group already has presence in Kenya through the acquisition of OrPower 22, which is developing a 35-MW geothermal power plant in Menengai.
The company had also acquired 100% stake of the Sorik Marapi geothermal power plant in Indonesia through wholly owned subsidiary KS Orka Renewables Pte. Ltd.
