Unilever has invested KSh70 million in an 800kW solar power system at its Nairobi factory, joining a growing number of Kenyan manufacturers investing in renewable energy to manage high electricity costs. The installation, which became operational in June 2026, is expected to supply approximately 30 per cent of the factory’s electricity needs and save the company about KSh30 million annually.
The investment comes as Kenyan manufacturers face industrial electricity tariffs estimated at US$0.18 to US$0.23 per kilowatt-hour, putting pressure on production costs and competitiveness. Unilever has also switched its factory boilers from heavy fuel oil to biomass, with the two changes contributing to an estimated 40 per cent reduction in carbon emissions compared with its 2023 baseline.
Unilever joins companies including Bamburi Cement, Mabati Rolling, Bidco Africa, British American Tobacco, Carbacid Investments and Unilever Tea Kenya in adopting solar power for industrial operations. Manufacturers are increasingly turning to on-site generation to reduce dependence on grid electricity, improve energy-cost predictability and strengthen operational resilience.
The shift is also reshaping Kenya’s electricity market. Commercial and industrial businesses added 72.8MW of solar capacity in the first half of 2026, bringing total self-generation capacity in the sector to 676.6MW. While the investments support cleaner energy use, they also present a challenge for Kenya Power as some major commercial customers reduce their reliance on the national grid.