Q&A: Why clean energy makes business sense

From the newsletter

Some industry experts claim no country has ever industrialised solely on renewables and that they remain expensive. To challenge this narrative, we spoke with Nancy Mwari, an energy and sustainability expert. She says, from a 360-degree view, renewables are more affordable, and countries should adopt them to avoid future environmental clean-up costs.

• Nancy has supported several Kenyan industries in reducing their energy costs, earning her several awards. Her latest recognition is the Kathleen Gaffney Prize for energy efficiency (2025).

• She explains that for companies to fully benefit from renewable investments, they should first implement energy management and efficiency measures. This approach cuts down on project sizing costs.

More details

There's a myth that no country has industrialised solely on renewables. Is this true for Africa's industrial sector?

Nancy Mwari: I'm glad you called it a myth. I hear it a lot that companies are told to shift to renewables and it is a reality, It is happening. Kenya's grid is at around 90% renewable and is powering many industries with geothermal, hydro, and wind. This tells you the potential of clean energy for industrial growth. For an industrialised future, we have abundant resources in Kenya that we should exploit sustainably. 

While other sources might accelerate industrialisation, we'd face future clean-up costs. Choosing clean energy achieves two goals: lower cost and environmental protection. Integrating modern grid technology requires planning, reliability, and investment in stability, especially storage. If we address this, the debate about renewables industrialising Africa becomes irrelevant. It's about taking a 360-degree view.

Let’s also remember — countries that industrialised on fossil fuels didn’t have today’s technology. We do. Solar costs have dropped dramatically, storage is evolving, and grid tech has advanced. So the question isn’t “Can we?” It’s: Do we want to industrialise smarter? I believe we can — and should — do it in a way that avoids irreversible damage. We do not need to repeat the mistakes of others of industrialising and then cleaning up; instead, we can  chart a smarter, more sustainable path from the start

Our grid in Kenya faces challenges like blackouts and inconsistency. How are manufacturers coping with this challenge?

Nancy Mwari: Reliability reports show we are slightly above the threshold for general commercial outages.

Most facilities use diesel purely as backup, not primary power. It’s too expensive to run diesel full-time. Battery storage would be ideal, but it’s still the priciest part of any renewable setup. So, for now, diesel is mostly used to keep the essentials running during grid outages

Industries want stability more than anything. If the grid were consistently reliable, most companies would choose it in a heartbeat. That’s why investment in grid stability and resilience is just as critical as expanding generation

How do industries view the cost-effectiveness of grid power versus diesel for their operations?

Nancy Mwari: From an industry perspective, grid power is significantly cheaper than diesel. That is why reliable grid supply is the top priority for most facilities, not just for cost savings, but also to lower their carbon footprint.

Many companies are blending their energy mix — using grid power as the main source, and complementing it with on-site solar where it makes sense. But let’s be honest: most don’t invest in solar just to be greener. They’re looking for stable, reliable alternatives. Solar gives them those options. It’s not cheap upfront, but it gives businesses more control over their energy.

And remember — our grid is already over 90% green. So, from a sustainability perspective, grid power in Kenya is already a strong option

Has switching to solar cut costs for manufacturers, or is it an expensive investment? Are we seeing these savings yet?

Nancy Mwari: I'll split your question into energy efficiency and renewables because they go hand in hand.

Think of the energy pyramid. At the base is energy conservation — simple habits like turning off lights when not needed. No cost, just awareness. Then comes energy efficiency — upgrading to better equipment or technology. That’s where you start to see measurable, quick returns.

Some facilities have reported 10% to 30% savings just by fixing inefficiencies, especially in the early stages. Over time, the gains get smaller, but those first steps often have the biggest impact

Only after maximising energy conservation and efficiency should you size a renewable system. Otherwise, you’re designing a system to meet inflated or wasteful demand, and that’s expensive.

Sometimes, we mistakenly think we can waste energy from renewables because "the sun is free." However, remember that harnessing that energy requires an investment. So, even when discussing cost savings, we must first focus on energy conservation. 

So yes — renewables reduce costs, but you still need to build the system around a well-managed, efficient operation.

How do regulations and policies drive energy management and sustainability in industries?

Nancy Mwari: Energy management regulations and the Energy Act 2019 are driving this by setting benchmarks for various industries like tea, FMCG, hotels, and dairy. This allows companies to compare their energy usage. If a company produces with less energy, it's more competitive. The benchmarking process is ongoing. This benchmarking process is ongoing, but it's already shifting mindsets. I hope we’ll soon see green and white certificates issued based on performance. That would give companies clearer incentives to improve, and explain why some products are more cost-competitive than others

From a policy standpoint, we are doing well. The sector is proactive in identifying beneficial next steps. However, we could improve compliance enforcement. Currently, some companies view compliance as merely conducting an audit every four years. But real compliance means forming energy teams, implementing audit recommendations, and making it part of your operational culture. So, Compliance is actually an ongoing mission.