KenGen Enters the Solar Market
KenGen solar power kits are the latest innovation from Kenya’s top power producer. The company aims to reduce its reliance on electricity sales and diversify its income streams. As a result, KenGen has announced plans to manufacture complete solar kits for homes and businesses across East Africa.
Kenya Electricity Generating Company (KenGen) has officially entered the solar energy sector. This move marks a strategic shift as the company seeks to lessen its dependence on Kenya Power. For instance, in the financial year ending June 2024, KenGen earned Sh41.25 billion from electricity sales to Kenya Power, which accounted for about 73% of its total revenue of Sh56.29 billion.
New Solar Plant to Be Built in Olkaria
To support this new direction, KenGen received approval from the Public-Private Partnership Directorate. Consequently, the company can proceed with setting up a solar kit manufacturing plant at Olkaria, Naivasha. Initially, the plant will focus on assembling photovoltaic (PV) modules. However, KenGen plans to expand production to include inverters and battery storage systems in the near future.
Target Market: Homes and East African Businesses
This move is timely, as demand for affordable and reliable energy solutions continues to rise. For example, frequent blackouts and high electricity tariffs have pushed many homes and businesses to invest in off-grid power. In fact, 47.2% of Kenya’s self-generated energy, equivalent to 574.6 MW, already comes from private solar installations.
Therefore, KenGen solar power kits are positioned to meet the growing energy needs of both urban and rural users. Moreover, local production could reduce dependence on imported solar products and bring down costs for end users.
Project Timeline and Investment
KenGen intends to recruit private-sector advisors by September 2025. Although the total investment cost has not been made public, the company views the project as a key step in expanding its renewable energy footprint. Once operational, the Olkaria plant will provide a local alternative to Chinese-imported solar kits, which currently dominate the regional market.
Beyond Solar: Carbon Credits and Regional Growth
In addition to solar power kits, KenGen plans to broaden its revenue base through carbon credit sales. The company expects to generate $32.05 million (Sh4.14 billion) from 4.62 million Certified Emission Reductions (CERs). Furthermore, KenGen is actively growing its regional presence in geothermal energy.
For instance, it has already earned Sh8 billion from geothermal drilling projects in Ethiopia and Djibouti. In addition, it plans to expand operations into Tanzania and Eswatini, further strengthening its position in East Africa’s renewable energy market.
A Shift Toward Renewable Growth
The development of KenGen solar power kits is part of the company’s broader effort to move away from a single-buyer model. Consequently, this shift supports its vision of becoming a regional leader in climate-aligned and diversified renewable energy solutions.
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