Manufacturers Must Lead Kenya’s Clean Energy Transition

High and rising energy costs have been identified as one of the impediments to manufacturing and new investments in Kenya.

As highlighted in various forums, Kenya’s high power costs are not only undermining industrial competitiveness but also threatening to derail the country’s ambition of becoming a regional manufacturing hub.

Yet, as the manufacturing sector grapples with escalating cost of electricity, there is a critical and urgent call for bold steps toward clean and energy-efficient alternatives.

In the face of such challenges, manufacturers must lead the charge toward energy transition, given that clean energy is not just an environmental imperative — it is now an economic one.

Electricity accounts for a significant portion of production costs, especially in energy-intensive sectors such as food processing and personal care manufacturing. According to Kenya Power, commercial and industrial users consume 55% of all energy sold, making them key players in any successful reform.

By adopting and producing renewable energy technologies, manufacturers can reduce their carbon footprint and stimulate green job creation. For instance, Pwani Oil made a strategic decision to invest in cleaner and more efficient energy systems. Today, 66% of the energy used across our operations comes from renewable sources, primarily our on-site solar power plant.

This has allowed us not only to reduce our dependency on the national grid but also to surpass our 2025 clean energy target by 16% — a milestone that affirms our long-term sustainability agenda. The solar plant powers critical manufacturing processes at our Kikambala facility in Kilifi County, dramatically reducing our carbon emissions and shielding us from frequent energy fluctuations. It has also enabled us to lower production costs, a benefit we aim to pass on to our customers while enhancing our competitive edge in both local and export markets.

Lest we forget, climate change poses significant risks to industrial operations, including supply chain disruptions and resource scarcity. By embracing renewable energy and sustainable practices, manufacturers can build resilience against these risks, ensuring long-term operational stability and sustainability.

While the private sector can innovate and invest, energy sector reforms are essential to sustain progress. We welcome the Parliamentary Energy Committee’s commitment to address power supply challenges. Chairman Hon. Vincent Musau’s assurance that the committee is working with the Energy and Petroleum Regulatory Authority (EPRA), Water Resources Management Authority (WARMA), and Kenya Power to find lasting solutions is timely and encouraging.

But more can be done. Incentives such as tax relief on renewable energy equipment, expedited licensing for private power generation, and investments in grid modernization are vital to fast-track the transition.

Kenya’s Vision 2030 hinges on the strength of its industrial sector. If manufacturers are to thrive and create the jobs that power our economy, energy must be reliable, clean, and affordable. Transitioning to renewable energy is no longer optional — it is a survival strategy.

Read Also: How Ink Manufacturers Can Ensure A Sustainable Future

By Rajul Malde, the Commercial Director at Pwani Oil Products Limited. His email is rajul.malde@pwani.net