Unilever has spent KSh70 million on an 800 kW solar power system at its Nairobi factory, a project that is expected to generate roughly 30 per cent of the plant’s electricity and save the consumer-goods maker about KSh30 million a year.
The installation has been operating since June 2026 and is projected to lower the factory’s monthly electricity bill from around KSh12 million to between KSh7 million and KSh8 million, while the site also spends about KSh8 million a month on heavy fuel oil.
“Investments like this make our operations more resilient and more competitive while reducing our reliance on conventional energy,” said João Ribeiro, Unilever’s 1UL supply chain head, at the unveiling ceremony.
Switching the plant’s boilers from heavy fuel oil to biomass, together with the solar array, has cut carbon emissions at the Nairobi factory by about 40 per cent from the 2023 baseline, and Elodie Kouassi, head of supply chain for East Africa excluding Ethiopia, said the investment shows that sustainability and strong business performance can advance together.
Luck Ochieng, managing director of Unilever East Africa, added that increasing renewable energy use reduces operational emissions, manages energy costs and strengthens supply-chain resilience, benefits that can be passed to consumers through cheaper products.
Unilever joins a growing list of Kenyan manufacturers that have installed solar, including Bamburi Cement, Mabati Rolling, Unilever Tea Kenya, Bidco Africa, British American Tobacco and Carbacid Investments.
Kenya Power reported that new-customer electricity sales fell by KSh1.07 billion in the year to June 2026, consumption by new users dropped 20 per cent to 161.7 GWh and revenue from new connections declined 26.41 per cent to KSh4.05 billion.
In the first half of 2026 businesses added 72.8 MW of solar capacity, raising total commercial and industrial self-generation capacity to 676.6 MW.
Industrial electricity tariffs in Kenya are estimated at $0.18-$0.23 per kilowatt-hour (approximately KSh23.3-KSh29.8 per kWh), compared with $0.125 (KSh16.2) in Uganda, $0.08-$0.09 (KSh10.4-KSh11.7) in Tanzania, $0.01-$0.05 (KSh1.3-KSh6.5) in Ethiopia, $0.02-$0.03 (KSh2.6-KSh3.9) in Egypt and $0.03-$0.085 (KSh3.9-KSh11.0) in South Africa.
High power costs have long been cited by Kenyan manufacturers as a threat to competitiveness, with electricity bills comprising energy charges, taxes, levies, transmission and distribution costs and fuel-related adjustments.
Multinational companies operating in Kenya also face increasing pressure to lower carbon emissions to meet stricter international standards and supply-chain audit requirements.
The solar project’s simple payback period is about 2.33 years (28 months), and the system is expected to operate for 20-25 years, meeting internal hurdle rates for capital expenditure.
Senior management present at the ceremony included João F. Ribeiro, Luck Ochieng, Richard Bogita and Elodie Kouassi, underscoring the strategic importance of the initiative.
