Why Kenya's manufacturing future hubs on clean energy

Solar panel and turbine with sunset background. [Getty Images] Having spent a few years steering HACO Industries through the shifting economic tides, I have come to realise that the future of Kenya's industry hinges on clean energy. In a country that is generating over 90 per cent of its electricity from renewable sources-hydropower, geothermal, wind, and solar- Kenya is sitting on the cusp of opportunity that its industry must begin to exploit quickly. And it's up to manufacturers like HACO to seize it. One thing that needs to be clear to fellow captains of industry is that this isn't just about saving the planet; it's about saving our bottom line and securing our place in a rapidly changing world. Kenya's renewable energy credentials are the envy of Africa. Our installed capacity for electricity generation hit 2,988 megawatts in 2024, with geothermal alone accounting for 38%, according to electricity distributor Kenya Power. That's a powerful foundation for an industrial renaissance-one we can't afford to squander. At HACO, we've made sustainability the heartbeat of our operations. Solar panels now power parts of our production lines, and we're chasing efficiency with every watt we use. Our Chasing Zero Initiative isn't a buzzword; it's a roadmap to slash our carbon footprint while keeping our business humming. And it's working. Let's talk numbers. Energy costs are a beast for Kenyan manufacturers, often accounting for up to 20-30% of production expenses, according to industry estimates. Power bills have spiked as demand has climbed, and the national grid, while greener, isn't immune to disruptions. Clean energy flips that script. Though the upfront cost of solar arrays or wind turbines stings-think millions of shillings for a mid-sized setup-the payoff is real. At HACO, for instance, we have cut our reliance on grid power, insulated ourselves from price swings, and seen our energy bills shrink over time. It's a no-brainer for any manufacturer with an eye on the long game. But this isn't just about savings-it's about staying competitive. Global trade is turning green fast. The European Union's carbon border tax, set to hit imports by 2026, is a wake-up call. Buyers in London or New York don't just want quality goods; they want them made sustainably. At HACO, we're positioning ourselves to meet those standards, opening doors to export markets and green financing. And the government gets it, too. Kenya's Vision 2030 economic development blueprint pushes green industrialization, dangling tax breaks and incentives for companies like HACO. Investors notice when you're ahead of the curve-our sustainability pivot has already sparked interest from impact funds. Then, there's the consumer angle. Today's customers aren't the passive buyers of a decade ago. They're asking: Where did this come from? How was it made? Using clean energy isn't just compliance-it's a badge of honor. It builds trust, boosts brands, and keeps them a cut above the competition. When I see shoppers pick HACO products because they know we're doing right by the environment, it's proof this matters. Still, the road to a green manufacturing sector isn't all smooth. Small and medium-sized firms-vital to Kenya's economy and employing 80 per cent of the workforce-face a steep climb. A solar setup might cost 10 million shillings ($77,000), and green loans are scarce. Many lack the capital or know-how to leap. That's where teamwork comes in. Industrialists need public-private partnerships to bridge the gap-subsidised financing or shared renewable hubs. Smart grids and energy-efficient tech could level the playing field, but they're not scaling fast enough. So far, the government has been doing its part, pouring billions into projects like the Olkaria geothermal fields. Private players like us must step up too. At HACO, we're not waiting for handouts-we're innovating, testing hybrid systems, and sharing what works. But this can't be a solo act. Policymakers need to streamline regulations, banks need to loosen purse strings, and manufacturers need to ditch excuses. Kenya's renewable edge gives us a head start; now it's about execution. Undisputedly, change is hard. But I've seen what's possible. At HACO, clean energy isn't a sideline; it's the future. We're building a business that thrives today and endures tomorrow, all while leaving a lighter mark on the earth. Today, I can confidently say that Kenya's manufacturing sector has a choice: act now or get left behind. This isn't about ticking boxes or chasing trends-it's about growth, resilience, and a legacy worth leaving. Let's make it happen. The writer is the Managing Director of HACO Industries

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