Kenya’s rapidly expanding aquaculture sector is set to receive a significant boost following plans by Maxim Agri & Samakgro to invest nearly US$3.95 million in a geothermal-powered aquafeed manufacturing plant at the Olkaria Green Energy Park in Naivasha. The project, announced on July 17, underscores the country’s growing efforts to strengthen domestic aquaculture value chains, reduce dependence on imported fish feed and lower production costs that continue to constrain one of Africa’s fastest-growing food production sectors.
The proposed facility will have the capacity to produce up to eight metric tonnes of fish feed per hour while drawing three megawatts of renewable geothermal electricity from the Kenya Electricity Generating Company (KenGen), positioning it among the first large-scale aquafeed manufacturing plants in Africa to utilise geothermal energy as its primary power source. Although the developers have not disclosed construction timelines, the investment reflects increasing confidence in Kenya’s aquaculture industry, which has experienced sustained expansion over the past decade amid rising domestic fish consumption, government support and private sector investment.
The project also reinforces Kenya’s broader strategy of leveraging its globally recognised geothermal resources to attract energy-intensive industries seeking low-carbon and competitively priced electricity. According to KenGen, Kenya generates more than 40% of its electricity from geothermal energy, making it the largest producer of geothermal power in Africa and among the leading producers globally. The Olkaria geothermal complex in Nakuru County has become a cornerstone of the country’s clean energy transition, supporting industrialisation while reducing exposure to volatile fossil fuel prices.
For Kenya’s aquaculture sector, however, the significance of the investment extends beyond renewable energy. Fish feed remains the single largest operating expense for fish farmers, accounting for between 70% and 80% of production costs, according to the World Economic Forum (WEF). Limited domestic feed manufacturing capacity has forced many producers to rely on imported feed ingredients and finished products, contributing to production costs that are estimated to be between 10% and 20% higher than the global average.
According to the World Economic Forum’s January 2026 assessment of Africa’s aquaculture sector, dependence on imported soybean meal and fishmeal has increased production costs while exposing farmers to international commodity price fluctuations, foreign exchange volatility and supply chain disruptions. Soybean meal, a key feed ingredient, also competes directly with human food systems, creating additional pricing pressures as demand continues to rise.
By expanding domestic manufacturing capacity, Kenya aims to reduce these structural challenges while strengthening food security and improving the competitiveness of local fish producers. Officials associated with the Naivasha project indicate that access to geothermal power should significantly reduce operational costs, enabling the plant to supply more affordable, high-quality feed to fish farmers across the country.
The investment comes as Kenya experiences sustained growth in aquaculture production. According to the Kenya Fisheries Service (KeFS), national aquaculture output increased from 12,635 metric tonnes in 2017 to 33,423 metric tonnes in 2024, representing growth of more than 160% in seven years. The expansion has been driven by increased adoption of commercial fish farming, improved breeding technologies, government extension programmes and rising consumer demand for affordable protein.
Fish consumption across Africa continues to increase as populations grow, urbanisation accelerates and consumers seek alternative sources of animal protein. However, the continent remains a net importer of fish despite possessing abundant freshwater and marine resources. According to the Food and Agriculture Organization of the United Nations (FAO), Africa imports billions of dollars’ worth of fish annually to meet domestic demand, highlighting the importance of expanding local aquaculture production.
Kenya has emerged as one of East Africa’s leading aquaculture markets, with tilapia accounting for the majority of farmed fish production. Lake Victoria remains central to the country’s fisheries economy, supporting both capture fisheries and expanding cage aquaculture operations that are increasingly attracting private investment.
One of the largest planned investments is Victory Farms’ proposed 750 million Kenyan shilling (approximately US$5.7 million) expansion in Migori County. According to documents submitted to Kenya’s National Environment Management Authority (NEMA) and reported by Business Daily, the company plans to develop additional floating cage infrastructure capable of producing up to 30,000 metric tonnes of tilapia annually. Such projects are expected to substantially increase demand for quality fish feed over the coming years.
The Maxim Agri & Samakgro investment follows another significant development announced in November 2025, when German-Kenyan joint venture DiscoverAqua unveiled plans to establish a major aquafeed manufacturing facility in Athi River, Machakos County. Scheduled to commence operations during the third quarter of 2026, the plant is expected to produce more than 20 metric tonnes of fish feed per hour, making it one of East Africa’s largest aquafeed production facilities.
The emergence of multiple large-scale feed manufacturers suggests that Kenya is entering a new phase in the development of its aquaculture value chain. Historically, growth in fish farming has often outpaced investment in supporting industries such as feed production, hatcheries, cold chain logistics and fish processing infrastructure. Closing these gaps is increasingly viewed as essential for achieving sustainable sector growth.
According to the African Development Bank (AfDB), aquaculture represents one of Africa’s most promising opportunities for improving food security, creating employment and reducing pressure on declining wild fish stocks. The sector is particularly important for rural economies, where fish farming provides income diversification opportunities for smallholder farmers while supporting local processing and distribution businesses.
The Naivasha project also highlights the growing convergence between Africa’s renewable energy transition and industrial development. As countries seek to expand manufacturing while meeting climate commitments, access to low-cost renewable electricity is becoming an increasingly important competitive advantage. Kenya’s geothermal resources, unlike intermittent solar or wind generation, provide reliable baseload electricity capable of supporting continuous industrial operations such as feed manufacturing. According to the International Renewable Energy Agency (IRENA), renewable-powered industrial production is expected to play an increasingly important role in improving Africa’s manufacturing competitiveness while reducing carbon emissions associated with industrial growth.
For Kenya, integrating renewable energy into agricultural value chains also supports broader national development objectives under the Bottom-Up Economic Transformation Agenda, which prioritises agriculture, manufacturing, food security and job creation. Lower feed costs could improve profitability for thousands of fish farmers, encourage further investment in aquaculture and strengthen domestic food production at a time when climate change continues to place increasing pressure on traditional agriculture.
The investment also reflects growing recognition that sustainable food systems require integrated approaches spanning energy, agriculture, manufacturing and environmental management. By combining renewable energy infrastructure with agricultural processing, projects such as the Olkaria aquafeed plant demonstrate how climate-smart industrial investments can simultaneously improve economic productivity, strengthen food security and reduce environmental impacts.
As Kenya continues to scale up aquaculture production, the availability of affordable, locally manufactured feed is likely to become one of the defining factors determining the industry’s long-term competitiveness. Investments in renewable-powered manufacturing capacity therefore represent more than industrial expansion; they strengthen domestic value addition, reduce import dependence and position Kenya to play a larger role in meeting Africa’s growing demand for sustainable and affordable aquatic food production.
