Unilever has invested about $540,000 (70 million Kenyan shillings) in an 800-kilowatt solar power system at its Nairobi factory, which the consumer goods maker expects will provide about 30% of the plant’s electricity and save $230,000 a year.
The system became operational in June, Unilever said, as manufacturers in Kenya seek to manage electricity costs and reduce their reliance on conventional energy sources.
Based on the company’s estimates, the project could recover its initial investment in about 2.3 years through energy savings, before financing and operating costs.
Unilever said carbon emissions at the Nairobi factory are now about 40% below 2023 levels, which the company uses as its baseline for measuring emissions reductions.
The reduction reflects measures introduced since 2023, including an earlier conversion of the factory’s boilers from heavy fuel oil to biomass, as well as the new solar installation, Unilever said.
The company did not attribute the entire 40% emissions reduction to the solar project.
Unilever plans to further reduce fossil-fuel use at the plant by switching hot-air generation from heavy fuel oil to biomass-based fuels, it said.
“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, at the unveiling of the solar installation.
Kenyan manufacturers have increasingly adopted solar power as they seek to reduce electricity costs and improve the predictability of their energy expenses.
Kenya Power’s base tariff for large consumers using between 1,000 and 15,000 kilowatt-hours a month fell to 18 shillings per unit in the year ended June 2026 from 18.30 shillings a year earlier. A proposed tariff increase from July was later frozen by the government.
More than 2,600 businesses were using Kenya Power’s discounted time-of-use tariff in the year ended June 2026, according to data reported by Business Daily.
“This investment demonstrates that sustainability and strong business performance can advance together,” said Elodie Kouassi, Unilever’s Head of Supply Chain for East Africa excluding Ethiopia.
The Nairobi project is part of Unilever’s wider programme to increase renewable-energy use across its manufacturing operations and reduce operational emissions.
