Written By: Faith Jemosop
The Kenya Electricity Generating Company (KenGen) has announced its entry into the manufacturing of solar photovoltaic (PV) modules. This marks a significant pivot from its traditional role as a power generator to a more diversified position within the renewable energy value chain.
The decision to venture into solar panel production is not just a business expansion, it is a calculated strategic shift that aligns with national goals, economic realities, global trends, and technological opportunities. But why exactly is KenGen moving into solar module manufacturing now? Let’s explore the motivations behind this bold decision.
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Meeting Kenya’s Rising Solar Demand
One of the core reasons behind KenGen’s new direction is the surging demand for solar energy in Kenya and across East Africa. With a population that is increasingly seeking clean and affordable energy solutions, especially in off-grid and rural areas, solar energy has emerged as a practical and scalable answer. The government of Kenya has set ambitious targets under its Vision 2030 blueprint and updated national energy policies, including the installation of at least 600 MW of grid-connected solar power and 300,000 solar home systems by 2030. KenGen’s move into solar manufacturing directly supports this vision.
Currently, most of the solar panels used in Kenya are imported from countries like China, India, and Turkey. This dependency leads to higher costs, delays due to shipping and customs, and vulnerability to global supply chain disruptions. By establishing a domestic manufacturing facility in Murang’a County, KenGen aims to localize production, ensure supply consistency, and make solar technology more accessible and affordable to households, institutions, and businesses across the country.
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Supporting Kenya’s Energy Independence and Resilience
Kenya’s over-reliance on imported energy technologies poses a challenge to energy security. Global events such as the COVID-19 pandemic and the Russia-Ukraine conflict exposed vulnerabilities in international supply chains, causing delays in energy infrastructure projects across Africa. KenGen’s venture into local solar panel manufacturing is a proactive step toward enhancing energy independence.
By producing solar modules domestically, the country can reduce its dependence on foreign markets, stabilize costs, and better manage energy planning. Moreover, KenGen’s decision strengthens Kenya’s resilience in the face of future economic shocks or global crises. It provides a buffer that allows the country to maintain momentum toward its renewable energy goals regardless of external disruptions.
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Accelerating Green Industrialization
KenGen’s solar manufacturing initiative is also a major boost to Kenya’s green industrialization agenda. Beyond simply providing power, the company is now contributing to the growth of a green manufacturing sector, an essential step toward a low-carbon economy. This aligns with Kenya’s commitments under the Paris Agreement and its updated Nationally Determined Contributions (NDCs), which include targets for emission reductions through clean energy technologies.
The planned manufacturing plant, which will have a capacity of 5 to 10 MW of panels per year, is expected to stimulate local industry, encourage research and development, and attract investment in renewable technologies. Moreover, this move supports the African Union’s Agenda 2063, which envisions a continent driven by sustainable development, inclusive growth, and technological innovation.
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Economic Opportunity and Job Creation
KenGen’s entry into solar manufacturing is not just about technology, it’s also about economics. The renewable energy sector presents a significant opportunity for economic growth and job creation. The solar value chain, spanning from raw materials and component assembly to distribution and installation, has the potential to create thousands of direct and indirect jobs in Kenya.
The Murang’a solar plant is designed not only for manufacturing but also as a center for skills development. The tender floated by KenGen includes a comprehensive training package for staff, both for plant operations and for maintenance of solar systems. This will equip Kenyan engineers, technicians, and entrepreneurs with specialized skills that are increasingly in demand, both locally and globally. By building this workforce, KenGen is investing in human capital that can drive the green economy forward.
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Expanding KenGen’s Business Portfolio
For KenGen, solar module manufacturing represents a strategic business expansion. As the utility seeks to diversify its revenue streams and reduce dependency on traditional electricity generation, venturing into renewable energy technology provides an opportunity to stay competitive in a fast-evolving market. The global energy transition is shifting investment and innovation toward decentralized and clean power solutions. By positioning itself as both a renewable energy producer and a technology supplier, KenGen can play a larger role in shaping the energy future of Kenya and the region.
This move also allows KenGen to capture new customers, such as independent power producers (IPPs), community mini-grid developers, NGOs, and private companies
who require solar panels but previously sourced them abroad. By supplying locally manufactured panels, KenGen can offer cost savings, shorter lead times, and tailored support, giving it a commercial advantage while fostering domestic business relationships.
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Leveraging Kenya’s Solar Potential
Kenya is geographically blessed with high solar irradiance, receiving 4 to 6 kWh per square meter per day. This makes it one of the best-suited countries in Sub-Saharan Africa for solar energy deployment. However, this potential remains underutilized, largely due to the high cost of equipment and limited domestic capacity to scale solar projects quickly.
KenGen’s manufacturing plant in Murang’a is strategically located to take advantage of this solar potential. It not only taps into the local resource but also builds capacity for widespread solar deployment across Kenya’s counties. Whether it’s rooftops in urban estates or mini-grids in rural villages, the availability of affordable, high-quality local panels will make solar energy more viable and scalable.
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Aligning with National and Continental Development Goals
KenGen’s decision is also guided by its role in advancing Kenya’s Vision 2030, which seeks to transform the country into a newly industrializing, middle-income nation. Energy is a key enabler in this vision, and local production of clean energy technologies is central to sustainable growth.
Furthermore, the African Continental Free Trade Area (AfCFTA) opens up regional markets that KenGen can tap into once its manufacturing is fully operational. East African nations such as Uganda, Rwanda, and Tanzania are also ramping up solar adoption. With the right scale and quality, KenGen’s panels could find markets beyond Kenya’s borders, making the company a continental player in solar innovation.
Also read: Why Slow Progress in Africa Could Jeopardize Global Renewable Energy Targets by 2030
Finally, the decision to manufacture solar panels is a timely response to the climate crisis. Kenya is already facing severe climate impacts, from prolonged droughts to erratic rainfall and floods, that threaten lives, livelihoods, and the economy. Transitioning to clean, distributed energy sources like solar is one of the most effective ways to build climate resilience.
By producing solar modules locally, KenGen is not just building capacity, it is taking a bold stance in the fight against climate change. Every solar panel produced contributes to reducing greenhouse gas emissions, lowering reliance on fossil fuels, and promoting a cleaner, safer environment for current and future generations.
