Chinese company commits Sh100 billion towards fertilizer plant

President William Ruto joins senior government officers during the groundbreaking for the 1B Kaishan fertilizer power plant in Olkaria, Naivasha. [Antony Gitonga, Standard]

A Chinese company has committed over Sh100 billion towards the production of green ammonium fertiliser in the geothermal-rich area of Olkaria, Naivasha.

Under the joint partnership between Kaishan and KenGen companies, the country will be producing over 9.2 million bags of the fertiliser every year.

The project is expected to bring down the cost of fertiliser, which has been adversely affected by the war between Russia and Ukraine.

President William Ruto, who officiated the groundbreaking ceremony, decried the high cost of importing fertiliser annually, which currently stands at over Sh80 billion.

He noted that over-reliance on fertilizer imports and rain-fed agriculture had hurt food production in the country, noting that the investment would now be a thing of the past.

“This plant, which will cost around Sh100 billion, will be producing 480 metric tonnes of fertiliser every year, and this will be critical in addressing food security in the country,” he said.

Speaking after launching the project, Dr Ruto said that in 2023, the government used Sh80 billion to import fertilizer, while Sh60 billion had been used this year to import 443 metric tonnes.

He lauded KenGen’s effort in industrialisation by providing affordable, reliable and clean energy from geothermal wells, which would be used to power the fertiliser plant.

“This will be the first ammonium fertiliser plant in Africa and the investor has committed to a reliable supply throughout the whole year while addressing the issue of prices,” he said.

The President challenged Kengen to increase its geothermal production from over 1,000 megawatts to 10,000 megawatts in the next 10 years as more investors moved into the country.

On his part, Kaishan managing director Yan Tang said that full production would start in August next year with KenGen supplying the company with 165 megawatts of electricity.

He assured the country of a continued and stable supply for the next 25 years, adding that they had projected producing 9.2 million bags of 50kgs every year.

“Works in the plant begins in April and full production by August and we expect to employ an estimated 500 people in the plant,” said Dr Tang.

Energy Cabinet Secretary Opiyo Wandayi said the project will be a game changer in the energy and agricultural sectors, which are the country’s economic backbone.

“This is part of the transformative agenda that includes supplying the country with clean energy and making sure that there is food security,” he said.