In a major strategic shift aimed at diversifying its revenue and capitalizing on the green energy transition, the Kenya Electricity Generating Company (KenGen) is set to begin manufacturing solar-power kits following the green light from the Public-Private Partnership Directorate last month.
The state-owned power producer will establish a solar assembly plant at its flagship geothermal complex in Olkaria. The facility will initially focus on assembling photovoltaic (PV) modules, with future plans to manufacture inverters and battery storage systems. The move comes as more households and businesses turn to self-generated solar power to beat high electricity costs and frequent national grid outages.
Solar already accounts for nearly half 47.2% of Kenya’s self-generated power capacity, amounting to 574.6 megawatts, as private firms install captive systems to insulate themselves from disruptions.
Though KenGen still earns the bulk of its revenue over Sh41 billion of Sh56.29 billion in the 2023/24 financial year by selling electricity to Kenya Power, the company is aggressively pursuing new revenue streams. The solar assembly line is expected to reduce reliance on a single buyer and help tap into East Africa’s growing solar market, currently dominated by cheaper Chinese imports.
KenGen is also eyeing climate finance opportunities, projecting $32.05 million (Sh4.14 billion) from the sale of 4.62 million Certified Emission Reductions (CERs). Additionally, it has expanded geothermal drilling operations regionally, raking in over Sh8 billion from contracts in Ethiopia and Djibouti and exploring new prospects in Tanzania and Eswatini.
With the solar plant, KenGen is not only reinforcing its commitment to climate-aligned growth but also positioning itself as a regional clean-tech leader in line with Kenya’s broader energy independence and sustainability agenda.
