Kenya attracts more FDI-Fertiplant E.Africa Limited (FEA) Kshs 1.7 Billion Nakuru Fertiliser Plant

Soon Kenya will have two massive fertiliser plants to supply the county and the region needs. No more imports.

Fertiplant East Africa Limited (FEA) will install and operate a Sh1.7 billion NPK fertiliser plant in Nakuru. The plant is expected to start operations May 2017. It shall have a capacity to produce 100,000 metric tonnes of NPK Fertilizers when in operation. Titus Gitau, Executive Director at Fertiplant said once operational, the plant would create 1 000 direct jobs and cut the cost of fertilisers by up to 70 per cent.

“The Nakuru plant is currently under construction and is set to be one of the most attractive and prestigious facilities in East Africa. It is one of a kind in Sub Saharan Africa and will be a major step towards bridging the gap between local production and imported fertiliser. It will also bring stability and continuity on supply of fertilisers in Kenya,” said Gitau.

Fertiplant is owned by MEA Ltd which currently operates a dry bulk fertiliser blending plant in Nakuru with an installed capacity of 300,000 metric tonnes per year which covers the demand and NPK fertilizer requirements within the region. Fertiplant East Africa is setting up a Nitrogen (N), Phosphorus (P), and Potassium (K), fertiliser (NPK fertiliser) production plant in Nakuru.

A picture of a similar Fertiliser plant that is being built in Nakuru
http://www.jalindia.com/data/images/a_view_of_jaypee_fertilizer_plant,_kanpur,_u.p-2.jpg

Good stuff,

Embu county had this noble idea too. It’s a pity they settled in petty political contests

This is good news to Kenyan farmers

Manufacturing and agriculture need more investments like these. At least hapa more people will get employment.

for our country like ours,investment in agriculture is of outmost important. 50 yrs on n the fact that we can’t feed ourselves properly is a shame

Wrong. We will soon be buying very expensive fertilizer. The investor will set up the plant and then lobby the government to offer tariff protection. At the cost of just 1000 jobs, the rest of the country will have to survive on expensive fertilizer. Remember we do not produce any raw materials for fertilizers. Essentially, all raw materials will be imported. What we are doing here is to hand the fertilizer market to one individual. Before you call me a pessimist let me give you a live example;steel. We do not produce any steel. What we have in place are steel converters who buy steel rolls that are converted to steel bars, sheets, and tubes. For that alone, we end up paying 3 to 4 times what others are paying. Currently, imported steel is attracting a surcharge of $200 per ton. The consequence of this is that the steel industry is in the clutches of about 10 families. These few people decide what steel the country consumes and the prices we pay for that steel. As if that is not enough, these families will source low-cost, low-quality steel from India. That means that items made from such steel cannot perform to the optimum. I am sure you have seen matatu seats with cracked joints. That is how poor quality steel behaves when welded. Tanzania had to deal with cases collapsing buildings last year for the same reason. The same case applies to cement. We pay 3 to 4 times what others are paying elsewhere just to protect a few jobs. That is the reason the Chinese contractors insist on importing their own cement. The cannot understand why anyone would pay more for lower quality cement.

Some serious points you raise, hizo ya steel na cement is true, I’m in that industry.

But its better to have some of those industries locally than to have none.

Interestingly your argument is based on “if government agrees to offer tariff protection” then the rest of your narration is based on a scenario as if its already done and present. Too far fetched.

I would have retorted the same way three decades ago, when my perception of the world was wholly shaped by what I gleaned from the media.

10 indian families…Shah family name