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.
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