Nairobi Entrepreneurs Embrace Off-Grid Solar for Business Growth
Entrepreneurs in Nairobi are increasingly adopting off-grid solar technology, contributing to Kenya's goal of achieving universal electricity access by 2030 without increasing emissions. While Kenya's main power grid largely relies on renewables, a quarter of its communities still lack centralized electricity. The improved economics of solar technology, with panel costs significantly decreasing, have made off-grid solutions more viable for small businesses, offering greater profitability compared to traditional diesel alternatives.
Kenya aims to provide universal electricity access by 2030, utilizing off-grid solar solutions to reach communities without centralized electricity. This approach supports the nation's commitment to avoiding increased emissions, building on its power grid, which primarily runs on renewable energy sources.
The declining cost of solar technology, with panel prices falling from approximately $3 per watt to mere cents, has bolstered the economic viability of these off-grid systems.
Milcah Wanjiru, an entrepreneur in Nairobi, exemplifies this shift. She operates a street-side stall where her core business is milling corn flour for local residents, often used in the Kenyan dish ugali. Unlike most grain mills in the region that rely on diesel fuel, Wanjiru's machine runs on either solar energy or grid electricity. She has been using the solar-powered mill since December 2025.
Matt Carr, CEO and cofounder of Agsol, the company behind Wanjiru's mill, notes that operating a solar-powered machine can be up to 80% more profitable after the initial cost of about $1,300 is paid off, typically within six to 12 months. This contrasts sharply with diesel-powered mills, where approximately 40% of customer charges cover fuel costs. Wanjiru also appreciates the mill's ability to process small grain amounts, which has attracted new customers.
While generally satisfied, Wanjiru reported that the machine can sometimes be slow, with grains getting stuck or jamming. Carr explained that the mill automatically reduces speed when grain is damp to maximize flour extraction, which can unfortunately lead to these issues.
Agsol, based near Nairobi, launched its first product in Kenya in 2018. The company has raised over $4 million in investment, partly through a UK government program supporting clean energy projects. Last year, Agsol sold 530 units and has received orders from countries including Mozambique and Angola.
According to MIT Technology Review, entrepreneurs like Wanjiru are making a strong case for the adoption of solar technology in daily business operations.
