KenGen is gearing up to venture into solar power kit distribution as it seeks to diversify revenue streams amid ongoing government delays in deciding the future of Kenya’s Turkana oil fields.
The step represents a shift beyond traditional grid-scale generation toward tapping the growing demand for off-grid solar solutions in homes and small businesses.
Fuelled by its robust financial performance KenGen’s profit after tax surged by 35 percent to Sh6.8 billion for the year ended June 2024, supported mainly by geothermal and hydroelectric revenue the firm is well positioned to invest in emerging markets.
It is also forging ahead with a major solar project, planning to deploy a 42.5 MW floating solar plant at the Seven Forks dams by 2027, in partnership with the French Development Agency, which will complement hydropower generation and conserve reservoir water for nighttime production.
Once complete, this plant would become Kenya’s second-largest solar facility and boost KenGen’s leadership in green energy generation.
Sources within the company reveal that concurrently, KenGen is piloting a model to distribute commercial solar power kits portable modular systems tailored for rural households and small enterprises.
 This initiative is designed to tap into the expanding off-grid sector, where customers often face high connection costs and unreliable grid supply.
Analysts describe this pivot as revenue-smart, leveraging KenGen’s infrastructure for logistics and maintenance while diversifying income beyond utility sales.
The push into solar kits also offers a hedge against delays in the exploitation of the Turkana oil deposits, which were expected to open another revenue stream for the energy sector.
 With the government yet to finalise licensing or development terms, KenGen is accelerating green investments that can deliver returns without awaiting hydrocarbon commercialization.
Industry watchers note that this strategy reflects a pragmatic response to petroleum sector uncertainty while aligning Kenya’s leading power producer with national ambitions to reach 100 percent green energy by 2030.
KenGen’s management expects the solar kit rollout to generate steady margins, create new customer segments, and reinforce its brand as an innovator in Kenya’s energy landscape.
The company remains on track to implement its Green Energy Park strategy and scale solar module sales alongside grid expansion.
With credentials rooted in renewable dominance over 90 percent of its current 1,726 MW portfolio is green KenGen is clearly positioning itself as both utility operator and distributed energy vendor, capitalising on Kenya’s solar future.
Written By Ian Maleve
