County Expands Renewable Energy Grants to Nairobi Factories

The Nairobi City County Government has rolled out a new grant scheme aimed at supporting manufacturing and factory operators in the region to adopt renewable energy systems and improve energy efficiency. Under the initiative, qualified factories can apply for subsidised funding—covering up to 30% of project capex—to install solar-PV systems, hybrid renewable installations and energy-efficient upgrades. The announcement strengthens the county’s push to align industrial development with Kenya’s clean-growth agenda.
The scheme responds to rising operational costs and energy sector pressures. Kenya reports that over 90% of its electricity now comes from renewable sources, yet grid tariffs and intermittent outages continue to challenge industrial actors.Meanwhile, Nairobi’s regulatory framework for green/climate finance has been formalised and highlights energy-efficiency and renewables as priority areas. Under the grant programme, county officials emphasise faster permitting, reduced licensing hurdles and technical support for factories seeking to modernise power supply. Several medium-sized manufacturers have already submitted proposals citing expected reductions of 20-40% in electricity bills within the first year of deployment.
Local industry reaction has been broadly positive. Factory owners say the grants help de-risk the switch to cleaner energy and enhance competitiveness by lowering production costs—an important advantage in a market increasingly constrained by imported input inflation. Energy and manufacturing analysts highlight the initiative’s potential to improve the region’s manufacturing base and help Nairobi become a cleaner industrial hub. However, some caution that success will depend on adequate training, strong supply-chain for renewable equipment, and sustained financing rather than one-off grants.
Looking ahead, Nairobi County plans to scale the programme to include energy-efficient manufacturing equipment grants, technical audits and performance-based subsidies by mid-2026. With Kenya’s national energy transition plan emphasising industry decarbonisation and green manufacturing, stakeholders believe that this local scheme could help attract new investment into Nairobi’s industrial parks and drive job creation in the green economy.