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Unilever invests $540,000 in Nairobi solar plant as Kenya businesses seek cheaper power. October 7, 2026 Unilever has invested about $540,000 (KES 70 million) in an 800-kilowatt solar installation at its Nairobi factory, targeting annual energy savings of about $230,000 (KES 30 million) as manufacturers in Kenya seek to contain electricity costs, BusinessTech Kenya reports. The solar system, which became operational in June, is expected to supply about 30% of the factory's electricity. Unilever said the project will reduce its reliance on conventional power sources while making energy costs more predictable. The investment gives the company a relatively short payback period. Based on Unilever's projected annual savings, the $540,000 installation could pay for itself in about 2.3 years, before financing, maintenance and other costs. Electricity remains a significant operating expense for Kenyan businesses, with manufacturers increasingly turning to solar and other measures to reduce their exposure to grid power costs. The World Bank has estimated Kenya's average electricity cost at about $0.23 per kilowatt-hour, making power relatively expensive for businesses compared with several other markets in the region. Kenya Power's base tariff for large consumers using between 1,000 and 15,000 kilowatt-hours a month fell to KES 18 per unit in the year ended June 2026 from KES 18.30 a year earlier. A proposed tariff increase from July was subsequently frozen by the government amid concerns over the cost of living. The pressure to manage electricity bills has nevertheless encouraged more businesses to shift consumption to cheaper periods and invest in alternative sources of power. More than 2,600 businesses were using Kenya Power's discounted time-of-use electricity tariff in the year ended June 2026, according to data reported by Business Daily. Emissions fall. Unilever said emissions from its Nairobi factory are now about 40% below 2023 levels, which the company uses as its baseline for measuring the reduction.

Unilever's Nairobi factory is turning sunlight into a $230,000 annual saving. Unilever has invested about $540,000 in an 800-kilowatt solar installation at its Nairobi factory, the consumer goods company said on Tuesday, as manufacturers in Kenya turn to renewable energy to reduce costs and exposure to power-price volatility. The solar system, which became operational in June, is expected to provide about 30% of the factory's electricity and save the company roughly $230,000 a year in energy costs, Unilever said. The company said the project, together with an earlier conversion of the factory's boilers from heavy fuel oil (HFO) to biomass, has helped reduce the site's carbon emissions by about 40% from a 2023 baseline. "Investments like this make our operations more resilient and more competitive while reducing our reliance on conventional energy," said João F. Ribeiro, Unilever's 1UL Supply Chain Head, who unveiled the plant at a ceremony at the factory. "The Nairobi factory is an important part of our manufacturing footprint, and this project shows how local action can contribute to our wider climate ambitions." Kenya is already one of Africa's leading renewable-energy markets, with renewables accounting for 78.79% of electricity supplied to the national grid in the second half of 2025, according to the Energy and Petroleum Regulatory Authority (EPRA). Thermal generation accounted for 9.11%, while electricity imports made up 12.10%, EPRA said. Geothermal power supplied 40.06% of total electricity generation, followed by hydropower at 22.36% and wind at 12.98%. Solar is also expanding beyond utility-scale projects as businesses increasingly install their own systems. Kenya had 540.9 MW of installed solar capacity as of December 2025, including 326.7 MW of captive solar capacity installed by consumers such as businesses and industrial facilities, EPRA said. The regulator said renewable sources accounted for 80.60% of Kenya's total installed electricity capacity at the end of 2025, while the country has set a target of increasing renewable capacity to 5,952 MW by 2030. The International Energy Agency said Kenya derives nearly 90% of its electricity generation from renewable sources and has become a regional leader in renewable power, although rising variable renewable generation is creating a greater need for flexibility, storage and grid investment. For manufacturers, the economics of onsite generation can be particularly attractive because solar installations allow companies to offset electricity purchased from the grid during daylight hours while reducing exposure to changes in electricity tariffs and fuel costs. Unilever said the Nairobi project is part of a broader programme to increase renewable-energy use across its manufacturing operations and reduce reliance on conventional fuels. "This investment demonstrates that sustainability and strong business performance can advance together," said Elodie Kouassi, Head of Supply Chain, East Africa excluding Ethiopia. "By increasing renewable energy use at our Nairobi factory, we are reducing operational emissions, managing energy costs and strengthening the resilience of our supply chain." The next phase of the Nairobi factory's decarbonisation programme will involve moving hot-air generation from HFO to biomass-based fuels, Unilever said. The company did not disclose the factory's total electricity consumption or the expected annual generation from the 800-kW solar installation. Globally, solar deployment is accelerating as companies and governments seek lower-carbon electricity. The IEA said global solar photovoltaic capacity additions exceeded 600 gigawatts in 2025, accounting for more than three-quarters of new renewable power capacity added during the year. The agency expects renewable power capacity worldwide to expand by almost 4,600 GW between 2025 and 2030, with solar PV accounting for more than half of the increase. Stay ahead of the Stories shaping its world. Subscribe to Impact Newswire and join its WhatsApp Channel for updates on global tech, business, and innovation - all in one place. Dive deeper into the future with the Cause Effect 4.0 Podcast, where Impact Newswire explore the ideas, trends, and technologies driving the global AI conversation. Got a story to share? Contact Us to reach a global audience with Impact Newswire. Mohd Hassan has extensive experience in news gathering, editing, and writing for the newswire industry, Contact - [email protected]

Unilever invests ksh70m in solar power at Nairobi factory. Unilever has invested Ksh 70 million in a solar power system at its Nairobi factory as the consumer goods manufacturer moves to lower energy costs, reduce emissions and make its operations less dependent on conventional fuels. The 800kW solar installation, which became operational in June 2026, is expected to provide about 30 per cent of the factory's electricity needs and save the company roughly Sh30 million in annual energy costs. The investment gives Unilever a way to tackle two pressures facing manufacturers at the same time: the cost of running energy-intensive operations and the need to reduce carbon emissions. Rather than treating sustainability as a separate expense, the company is using renewable energy to cut an ongoing operating cost. The Nairobi factory has also benefited from an earlier change in its energy mix, with its boilers switched from heavy fuel oil (HFO) to biomass. Combined with the new solar installation, Unilever estimates that the plant has reduced its carbon emissions by about 40 per cent compared with its 2023 baseline. The company said the changes have also made energy costs more predictable and improved the resilience of its manufacturing operations. "Investments like this make our operations more resilient and more competitive while reducing our reliance on conventional energy," said João F. Ribeiro, Unilever's 1UL Supply Chain Head, who unveiled the solar installation at a ceremony at the factory. "The Nairobi factory is an important part of our manufacturing footprint, and this project shows how local action can contribute to our wider climate ambitions," he added. Solar investment targets both costs and emissions. For manufacturers, energy is more than a utility bill. Electricity and fuel costs can influence production expenses, pricing and the ability of a factory to operate efficiently when energy markets become unpredictable. Unilever's Nairobi investment is therefore aimed at more than reducing its environmental footprint. The company expects the solar system to lower its annual energy bill by about Sh30 million, giving the factory a recurring financial benefit after the initial investment. At the expected savings rate, the Sh70 million investment would equal roughly 2.3 years of energy-cost savings, although the actual payback period will depend on factors such as electricity consumption, solar generation and operating conditions. Elodie Kouassi, Head of Supply Chain, East Africa excluding Ethiopia, said the project demonstrates how environmental and commercial objectives can work together. "This investment demonstrates that sustainability and strong business performance can advance together," Kouassi said. "By increasing renewable energy use at our Nairobi factory, we are reducing operational emissions, managing energy costs and strengthening the resilience of our supply chain." The company said the project forms part of a wider programme to increase renewable energy use across its manufacturing plants and reduce reliance on conventional fuels. Unilever prepares next phase of factory decarbonisation. The solar installation is not the end of Unilever's plans for the Nairobi factory. The company said its next phase will focus on moving hot-air generation from HFO to biomass-based fuels. The change is expected to further reduce the factory's use of fossil fuels and build on the progress already made through the boiler conversion and solar project. This means the factory's energy transition is taking place across several areas rather than relying on solar power alone. Electricity consumption is being addressed through the 800kW solar system, while industrial heat is being shifted away from HFO through biomass. That distinction matters because manufacturing facilities often require both electricity and heat, meaning a single renewable-energy project cannot eliminate all fossil-fuel use. The Nairobi factory is part of Unilever's wider manufacturing footprint, making the investment significant beyond the immediate reduction in the plant's energy costs. For the company, the project provides a local example of how changes to factory operations can support broader climate targets while also making commercial sense. Kenya's relatively strong renewable-energy base also provides an important backdrop to such investments. As manufacturers look for ways to manage energy costs and improve efficiency, investments in on-site generation and alternative fuels could become an increasingly important part of industrial planning. For Unilever, the Nairobi factory's shift is already producing a combination that businesses rarely turn down: lower running costs, less exposure to conventional fuels and a smaller carbon footprint. The company estimates that the combined measures have already cut emissions by about 40 per cent from the 2023 baseline, while the solar project is expected to save about Sh30 million every year. The next test will be whether the planned shift in hot-air generation can deliver further reductions and strengthen the factory's position as a lower-carbon manufacturing operation.