Unilever Invests Ksh70M in Solar Power at Nairobi Factory

Unilever has invested Ksh 70 million in a solar power system at its Nairobi factory as the consumer goods manufacturer moves to lower energy costs, reduce emissions and make its operations less dependent on conventional fuels.

The 800kW solar installation, which became operational in June 2026, is expected to provide about 30 per cent of the factory’s electricity needs and save the company roughly Sh30 million in annual energy costs.

The investment gives Unilever a way to tackle two pressures facing manufacturers at the same time: the cost of running energy-intensive operations and the need to reduce carbon emissions. Rather than treating sustainability as a separate expense, the company is using renewable energy to cut an ongoing operating cost.

The Nairobi factory has also benefited from an earlier change in its energy mix, with its boilers switched from heavy fuel oil (HFO) to biomass. Combined with the new solar installation, Unilever estimates that the plant has reduced its carbon emissions by about 40 per cent compared with its 2023 baseline.

The company said the changes have also made energy costs more predictable and improved the resilience of its manufacturing operations.

“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 solar installation 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,” he added.

Solar investment targets both costs and emissions

For manufacturers, energy is more than a utility bill. Electricity and fuel costs can influence production expenses, pricing and the ability of a factory to operate efficiently when energy markets become unpredictable.

Unilever’s Nairobi investment is therefore aimed at more than reducing its environmental footprint. The company expects the solar system to lower its annual energy bill by about Sh30 million, giving the factory a recurring financial benefit after the initial investment.

At the expected savings rate, the Sh70 million investment would equal roughly 2.3 years of energy-cost savings, although the actual payback period will depend on factors such as electricity consumption, solar generation and operating conditions.

Elodie Kouassi, Head of Supply Chain, East Africa excluding Ethiopia, said the project demonstrates how environmental and commercial objectives can work together.

“This investment demonstrates that sustainability and strong business performance can advance together,” Kouassi said. “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 company said the project forms part of a wider programme to increase renewable energy use across its manufacturing plants and reduce reliance on conventional fuels.

Unilever prepares next phase of factory decarbonisation

The solar installation is not the end of Unilever’s plans for the Nairobi factory.

The company said its next phase will focus on moving hot-air generation from HFO to biomass-based fuels. The change is expected to further reduce the factory’s use of fossil fuels and build on the progress already made through the boiler conversion and solar project.

This means the factory’s energy transition is taking place across several areas rather than relying on solar power alone. Electricity consumption is being addressed through the 800kW solar system, while industrial heat is being shifted away from HFO through biomass.

That distinction matters because manufacturing facilities often require both electricity and heat, meaning a single renewable-energy project cannot eliminate all fossil-fuel use.

The Nairobi factory is part of Unilever’s wider manufacturing footprint, making the investment significant beyond the immediate reduction in the plant’s energy costs. For the company, the project provides a local example of how changes to factory operations can support broader climate targets while also making commercial sense.

Kenya’s relatively strong renewable-energy base also provides an important backdrop to such investments. As manufacturers look for ways to manage energy costs and improve efficiency, investments in on-site generation and alternative fuels could become an increasingly important part of industrial planning.

For Unilever, the Nairobi factory’s shift is already producing a combination that businesses rarely turn down: lower running costs, less exposure to conventional fuels and a smaller carbon footprint.

The company estimates that the combined measures have already cut emissions by about 40 per cent from the 2023 baseline, while the solar project is expected to save about Sh30 million every year.

The next test will be whether the planned shift in hot-air generation can deliver further reductions and strengthen the factory’s position as a lower-carbon manufacturing operation.