The government has announced plans to radically change the agricultural sector in the country by becoming a top fertiliser producer in Africa and beyond.
Energy Cabinet Secretary Opiyo Wandayi spoke in Nakuru on Thursday, October 24 where he revealed that a Memorandum of Understanding (MoU) was in place with Kenya Electricity Generating Company (KenGen) and Chinese firm Kaishani Group.
The agreement is meant to aid in coming up with mechanisms to make it possible for Kenya to produce fertiliser locally.
"For the first time, the country will be able to develop green hydrogen and ammonia and eventually get fertiliser for our agriculture." the CS said, adding that the long-term goal was to permanently address the issue of food security in the country.
Also in attendance at the landmark opening of the 35MW Orpower Twenty-Two Geothermal Plant in Menengai was President William Ruto, who disclosed plans to have a functional fertiliser-producing plant in the next two years.
"I am excited to announce today that we will sign the agreement that will produce (in 24 months) the first hydrogen, ammonia and fertiliser for our farmers from geothermal power from here in Kenya," the President said.
According to President Ruto, the landmark move will progressively reduce fertiliser imports - something which will greatly reduce farmers' costs of food production.
About Kaishan: The Kaishan Group first entered the Kenyan market in 2023, taking over one of the three 35MW geothermal developments at Menengai from Symbion Power.
Since the takeover in June 2023, Kenya has slowly transitioned into cleaner sources of energy, amid the growing electricity demand brought about by the growing economy.
Kaishani Group is also quite reputable in the world of clean energy and recorded a staggering Ksh 7.8 billion in net income in the year ending December 31, 2023.
The company has also undertaken projects in other continents and recently signed a similar agreement with renewable energy developer Cindrigo to develop power projects in Europe.
Agriculture is one of the key drivers of Kenya's economy, and the government has in recent times shown intent in mitigating several factors affecting farmers, including the contentious issue of fertiliser prices.
On October 14, the Ministry of Agriculture and Livestock Development gave the Kenya Tea Development Agency (KTDA) a new directive on the new fertilizer retail prices ahead of the anticipated short rains. As part of the subsidy programme, farmers will spend Ksh2,500 per a 50kg bag.
During the same event, Ruto also strongly championed Public Private Partnership (PPP) while referring to the Indian conglomerate Adani Group's investment in the country.
The Head of State spoke on the Ksh95 billion deal with Adani Energy Solutions, insisting it would greatly help stabilise electricity in the country mainly through maintaining key electricity transmission lines.
Under the deal, Adani will construct and manage among others, a 400kV Gilgil-Thika-Malaa-Konza line, spanning 208.73 km. A 220kV Rongai-Keringet-Chemosit line covering around 100 km will also be overseen by the group.
