Kenyan agricultural inputs manufacturer Unga Farm Care (EA) Ltd has commissioned a renewable biomass boiler at its production facility, marking a strategic shift toward sustainable energy use and cost efficiency. The project, implemented in partnership with Lean Energy Solutions, is expected to significantly reduce the company’s reliance on imported diesel while delivering substantial savings in foreign exchange and operational costs.
The transition highlights a growing trend among Kenyan manufacturers exploring renewable thermal energy solutions as a way to manage rising production costs, currency volatility, and sustainability obligations.
Biomass Transition to Deliver KES 129 Million Annual Forex Savings
The newly installed biomass boiler replaces diesel-powered thermal energy systems that have historically been a major operating expense for the manufacturer. By switching to locally sourced biomass fuel, the company expects to save approximately USD 1 million, equivalent to about KES 129 million, annually in foreign exchange costs.
Energy has become one of the largest cost centres for manufacturing firms in Kenya, especially those that rely heavily on imported fossil fuels. Fluctuations in global fuel prices and foreign exchange rates have increased uncertainty in production planning, often squeezing margins for manufacturers across sectors.
According to Fredrick Kinge, Plant Manager at Unga Farm Care, the decision to invest in renewable thermal energy was driven by the need to improve long-term cost predictability and operational resilience.
“Managing input costs and exposure to foreign exchange volatility has become critical to the long-term sustainability of manufacturing.”
The biomass solution allows the company to stabilize energy costs while reducing exposure to global fuel price shocks that have affected industrial production in recent years.
Steam Production Costs Expected to Drop by 45%
Beyond foreign exchange savings, the renewable energy project is projected to reduce steam generation costs by approximately 45 percent. Steam plays a crucial role in manufacturing processes, particularly in industries such as agricultural inputs, food processing, and chemicals.
Lower thermal energy costs directly enhance production efficiency and profit margins, allowing companies to remain competitive in both local and export markets.
Industry analysts note that many manufacturers traditionally treat energy consumption as a routine operational expense rather than a strategic performance driver. However, increasing cost pressures are forcing companies to rethink their energy sourcing models.
Dinesh Tembhekar, Founder and Managing Director of Lean Energy Solutions, emphasized that thermal energy is often overlooked despite its significant financial impact.
“Industrial thermal energy is one of the biggest cost centers in manufacturing, yet it is rarely treated as a strategic lever.”
He added that the project demonstrates how companies can simultaneously cut costs, reduce currency exposure, and support environmental sustainability.
Major Environmental Gains Through Reduced Diesel Use
The biomass boiler is expected to eliminate the consumption of approximately 1.08 million litres of diesel annually. This reduction translates into the avoidance of about 4,800 tonnes of carbon dioxide emissions each year.
The project aligns with Kenya’s national sustainability goals and broader climate commitments, particularly in the industrial sector, which remains one of the largest contributors to carbon emissions.
Biomass energy systems use organic materials such as agricultural waste to generate heat, offering a renewable and locally available alternative to fossil fuels. The adoption of biomass technology also supports circular economy practices by turning agricultural residues into valuable energy resources.
Job Creation Along the Biomass Value Chain
Apart from environmental and financial benefits, the project is expected to generate approximately 50,000 man-days of employment annually. Jobs will be created across the biomass supply chain, including agricultural waste collection, processing, and transportation.
The employment impact highlights the broader economic ripple effects of renewable energy investments, particularly in rural and agricultural communities where biomass raw materials are sourced.
Manufacturing energy transitions often create new value chains, offering opportunities for small and medium-sized enterprises involved in raw material logistics and processing.
Innovative Financing Model Lowers Barriers for Manufacturers
Lean Energy Solutions implemented the biomass boiler through a renewable thermal energy partnership model designed to reduce upfront capital costs for manufacturers.
High initial investment costs have traditionally slowed the adoption of renewable industrial energy solutions. Partnership-based financing models allow manufacturers to transition without carrying the full capital burden, enabling faster adoption of cleaner technologies.
Industry observers believe such financing structures could accelerate renewable energy uptake across Kenya’s manufacturing sector, especially among mid-sized industrial firms seeking cost savings without significant capital outlay.
Growing Industry and Policy Support for Renewable Manufacturing Energy
The commissioning ceremony attracted key stakeholders from Kenya’s industrial and energy sectors, including representatives from the Kenya Renewable Energy Association and the Kenya Association of Manufacturers, alongside officials from the Ministry of Energy.
Their presence underscores increasing public and private sector collaboration in promoting renewable energy solutions for industrial growth.
Kenya has been positioning itself as a regional leader in renewable electricity generation, particularly through geothermal, hydro, wind, and solar energy. However, renewable thermal energy adoption in manufacturing remains relatively new, presenting a major opportunity for emissions reduction and cost efficiency.
Rising Input Costs Driving Energy Strategy Shift
Manufacturers in Kenya continue to face multiple cost pressures, including fuel price volatility, high logistics expenses, and sustained foreign exchange constraints. These challenges have pushed companies to reassess their operational strategies, with energy management emerging as a critical competitiveness factor.
Energy-intensive industries such as agriculture processing, cement production, textiles, and food manufacturing are increasingly exploring alternative fuel sources as part of broader cost-control measures.
Experts note that renewable thermal solutions like biomass could play a major role in strengthening Kenya’s industrial resilience while supporting climate targets and economic sustainability.
Biomass Positioned as a Practical Industrial Energy Solution
The partnership between Unga Farm Care and Lean Energy Solutions demonstrates how renewable energy can deliver simultaneous financial, environmental, and social benefits. The project serves as a potential blueprint for other manufacturers seeking to lower production costs while aligning with sustainability goals.
As Kenya’s manufacturing sector continues to expand, companies are likely to face increasing pressure to adopt efficient and environmentally friendly production technologies. Renewable thermal energy is emerging as a viable tool to address both economic and environmental challenges facing the industry.
