THE AFRICAN BUSINESS FORTUNE MAGAZINE ISSUE #006 The African Business Fortune Magazine | Page 56

THE AFRICAN BUSINESS FORTUNE - ENERGY Powering Powering Kenya’s Kenya’s economy economy through through solar solar energy energy By Guy Lawrence K New buildings going up include county offices, hospitals, schools and agricultural facilities such as factories and processing plants. The 2016 City Momentum Index (CMI) report by Jones Lang LaSalle points out Kenya’s booming economy as the driving force behind the development of new infrastructure and the country’s booming real estate sector. These activities, according to the report, have enabled Nairobi’s expansion as it registers among the highest levels of office and retail construction of any city globally at the moment. All this new construction amounts to a fast growing demand for power – with the current grid capacity sometimes struggles to meet its demand, resulting in power rationing or blackouts. The interruption to business operations stifles efficiency, and therefore profits. Never in Kenya’s history has the need enya continues to experience healthy economic growth due to increased Foreign Direct Investments (FDI), better living standards in the urban areas and more multinationals setting up base in the capital city Nairobi as they seek to penetrate the regional market. The upward trajectory in economy has seen the construction of iconic commercial buildings as investors, local and international, seek to tap into limited office space and take advantage of the robust retail market. This competition in the property market is being driven by Nairobi’s status as an investment hub for the East and Central African region. Devolution in Kenya has also spurred more activity in the construction sector as counties seek to erect mega structures that will positively impact development in their respective areas. 56 THE AFRICAN BUSINESS FORTUNE MAY - JUNE 2016 for new energy solutions been more evident than right now. Only 25 per cent of Kenyan population is connected to the national electricity grid, with rural grid access at about 5 per cent. It is also estimated that there is a 300MW electricity shortfall at peak hours (6.30pm to 10.30pm), when most domestic consumers switch on electricity from the country’s total 2,282 MW capacity. Also, much of Kenya’s energy is currently provided by expensive, dirty diesel generators – not good news for the business bottom line, or the environment. To move Kenya away from diesel sources, and to help meet the energy deficit, Kenya’s government is increasingly looking to renewables as the antidote to Kenya’s power woes. Heat from the earth’s core, the wind, the water, and the sun are all freely available and sustainable – harnessing them can supply an endless source of energy and in Kenya, the long daylight hours make it particularly well suited to solar technology, which