Kenya’s Corporate Sector Turns to Solar as Businesses Seek Relief from Rising Energy Costs

Kenyan businesses are increasingly investing in solar power as they seek to manage electricity costs, improve operational efficiency, and reduce dependence on the national grid.

From manufacturers and retailers to telecommunications companies and commercial property developers, organisations across different sectors are incorporating solar energy into their operations.

The shift reflects a growing business interest in alternative energy sources, particularly as electricity remains a significant operational expense for energy-intensive industries.

Companies Increasingly Embrace Solar Energy

Several established companies have already invested in solar infrastructure to support their electricity needs.

Safaricom, for instance, has installed solar power systems at 2,028 of its base stations, with plans to increase this number to 5,000 by 2030. The move is intended to reduce dependence on grid electricity and diesel generators.

In the manufacturing sector, Unilever has installed an 800 kW solar power system at its Nairobi factory, supplying approximately 30% of the facility’s electricity requirements. The installation is expected to save the company approximately KSh30 million annually in electricity costs.

Other manufacturers are pursuing similar investments. Mabati Rolling Mills has installed a 2.9 MWp solar plant at its Mariakani facility, meeting approximately 60% of the plant’s electricity needs. HACO Industries, meanwhile, has a 240 kW installation supplying about 40% of its factory’s electricity requirements.

Kenchic has also installed a 1.32 MW solar power system at its hatchery and processing plant. The installation is expected to generate approximately 1,550 MWh annually and reduce electricity costs by about 33%.

The trend extends beyond manufacturing. TotalEnergies Kenya had installed solar systems at 154 fuel stations and one depot by December 2025, while KCB Bank has introduced solar installations in 16 branches, with plans to extend the initiative to another 30 branches in 2026.

Manufacturing Leads the Shift

Manufacturing facilities are particularly positioned to benefit from solar investments because of their substantial and continuous electricity requirements.

Companies such as Bamburi Cement are developing large-scale solar projects, including a 14.5 MW plant at their Mombasa facility and a 5 MW installation at Athi River.

Abyssinia Iron and Steel is also expanding its solar capacity at its Awasi plant to 9 MWp, while Coca-Cola has entered into power purchase agreements for solar installations at its Embakasi and Kisumu manufacturing facilities.

These investments demonstrate how businesses are exploring different approaches to renewable energy adoption, including owning solar infrastructure and entering into agreements with independent energy providers.

For companies operating large manufacturing facilities, the potential benefits extend beyond lower electricity bills. Greater control over energy supply can also support production planning and reduce exposure to fluctuations in electricity costs.

Beyond Cost Savings: A Business Competitiveness Strategy

The growing adoption of solar energy presents an interesting shift in how Kenyan businesses approach operational expenditure.

For energy-intensive companies, electricity costs influence production expenses, pricing decisions and overall profitability.

Investing in alternative energy sources could therefore offer businesses an opportunity to improve cost management while strengthening their long-term operational resilience.

The expansion is also creating opportunities for companies operating in the renewable energy value chain, including solar developers, equipment suppliers, installation firms and energy service providers.

However, the transition is not without challenges. Initial installation costs, infrastructure requirements, maintenance and the need for reliable backup systems remain important considerations for businesses evaluating solar investments.

What Does This Mean for Kenya’s Business Landscape?

The increasing number of companies adopting solar power points to a wider shift in Kenya’s energy market.

Commercial and industrial consumers are becoming more active participants in the transition towards renewable energy, rather than relying exclusively on conventional electricity supply.

Developments such as the planned 50 MW solar power plant at Konza Technopolis further demonstrate the scale of ambition surrounding alternative energy infrastructure.

For businesses, the central question is gradually moving beyond whether solar energy is a viable alternative to how it can be integrated into operations to deliver measurable long-term value.

As more organisations invest in renewable energy, the coming years could reshape how Kenyan companies manage energy costs, plan investments and compete in an increasingly cost-conscious business environment.

The bigger picture: Solar energy is becoming more than an environmental consideration for Kenyan businesses. It is increasingly part of the conversation around operational efficiency, cost competitiveness and long-term business sustainability.