Kenya’s state-owned firm, KenGen, has ventured into the manufacture of solar power kits in an aim to diversify its revenue. The Kenya Electricity Generating Company (KenGen) will commence this plan after the Public-Private partnership Directorate approved a concept note last month. The concept note cleared the way for the company to recruit advisors and establish a plant at Olkaria. The facility will commence by first assembling photovoltaic (PV) modules. Later on, it will expand to inverters and battery-storage systems. This will allow KenGen to tap surging household and business demand for cheaper, more reliable energy than the national grid. Electricity sales to Kenya Power still deliver about 73% of KenGen’s annual revenue (Sh41.25 billion of Sh56.29 billion in the year to June 2024). However, management still seeks to court new income streams to boost its revenue. KenGen’s solar power kits promises to be an attractive avenue. Captive installations already supply 47.2% of Kenya’s self-generated power capacity, totaling 574.6 MW, as firms seek to curb costs and avoid frequent blackouts.
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The implementation of KenGen’s solar power kits is one of the streams that the company aims to leverage to ensure diversification. Beyond panels, KenGen is pursuing carbon-credit sales, expecting $32.05 million (Sh4.14 billion) from 4.62 million Certified Emission Reductions. Furthermore, it will include regional geothermal-drilling contracts, having earned at least Sh8 billion from projects in Ethiopia and Djibouti. The firm is also eyeing work in Tanzania and Eswatini. The solar plant will target East African markets now dominated by Chinese imports, reinforcing KenGen’s pivot from a single-buyer model toward diversified, climate-aligned growth. Moreover, KenGen aims to tap a transaction advisor for the project by September, this year. The plant whose estimated cost remains undisclosed will be located in Olkaria and marks KenGen’s plans to tap into the growing demand of solar. It will also provide homes and businesses with cheap and reliable electricity compared to reliance on Kenya Power (KPLC).
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