Animal and human food processor Unga Group targets to save about Sh83 million annually after switching from diesel-powered thermal energy to renewable biomass at its manufacturing facility.
The company, in partnership with industrial biomass firm Lean Energy Solutions, seeks to cut energy costs and reduce foreign exchange exposure.
“Managing input costs and exposure to foreign exchange volatility has become critical to the long-term sustainability of manufacturing. This transition strengthens cost predictability while reducing reliance on imported fuels, supporting long-term operational resilience,” Fredrick Kinge, Plant Manager, Unga Farm Care (EA) Ltd, said.
Unga said the new system is expected to cut its steam generation costs by approximately 45 percent.
Lean Energy implemented the project through a renewable thermal energy partnership model that helps to lower the capital barriers for manufacturers. Under this arrangement, the energy firm invests in, runs, and maintains the boiler, allowing Unga to access clean thermal energy without the upfront capital expenditure.
“Industrial thermal energy is one of the biggest cost centers in manufacturing, yet it is rarely treated as a strategic lever. This project proves that manufacturers can cut costs, reduce forex exposure, and decarbonise at the same time,” said Dinesh Tembhekar, Founder and Managing Director, Lean Energy Solutions.
Expensive power remains a major concern for Kenya’s manufacturing sector, with higher global fuel prices inflating most production costs.
Many Kenyan manufacturers have turned to renewable energy solutions such as biomass and solar to manage costs and enhance sustainability. A growing list of manufacturers in Kenya, including Bio Food Products, Mabati Rolling Mills, Total Energies Kenya, Maisha Mabati Mills, Simba Cement, Unilever Tea Kenya, British American Tobacco, Africa Logistics Properties, Bidco, and Devyani Food Industries, have shifted to their own solar power generation to cut operational costs and lower emissions.
