Listed carbon dioxide manufacturer, Carbacid Investments, is set to cut its use of electricity supplied by Kenya Power by 50 percent in two years as it steps up its investment in solar power.
The company, which is among those investing in solar energy in search of cheaper and more dependable supply, had already reduced its reliance on the national grid to 42 percent as of July after installing a 700 kilowatt-peak (kWp) solar plant.
"With the commissioning of our third solar power plant, renewable energy now contributes a substantial share of our operations, reducing reliance on the national grid by over 40 percent," Carbacid says in its latest sustainability report.
"This shift enhances both cost competitiveness and environmental performance. Our goal is clear: achieve 50 percent renewable energy usage by 2027 and drive continuous reductions in our environmental footprint."
The firm revealed that it plans to commission a further 750 kWp solar plant next year to meet this goal.
Reduced power costs saw the company report a six percentage point increase in operating profits, despite failing to disclose the size of its power bills and the amount invested in the solar panels.
“Gross margin improved significantly from 59 percent to 65 percent, attributed to enhanced operational efficiency, notably from reduced power costs following substantial investments in solar energy infrastructure” Carbacid said in its latest annual report.
“We have installed three solar plants. The commissioning of these three plants led to a 25 percent reduction in electricity consumption in 2025,” added the company.
In March, the company installed a 250 kWp plant to add to its existing 450 kWp solar power capacity.
Carbacid said that it was using fewer units of power to produce a kilogramme of its product: 0.428 kWh in the year ending July, down from 0.434 kWh per kilogramme the previous year — underlining improved energy efficiency.
The company is also using technology to analyse the power consumed by equipment on its production line, identifying any wastage.
“With this system, Carbacid can monitor power consumption and any wastage noticed is rectified immediately. This also guides on how to identify and address any degradation of the equipment promptly,” said the company.
Carbacid is the major producer of carbon dioxide, which is used to make fizzy beverages like soft drinks, among other applications.
Large power consumers such as factories, universities, hotels and banks have been switching from Kenya Power to alternative power sources, particularly solar and biomass technology.
Companies that have recently installed their own solar plants include Mabati Rolling Mills, which commissioned a 2.9 megawatt rooftop solar system at its plant in Mariakani, as well as Nandi Tea and steel producer Abyssinia Group Industries.
The trend signals the quest by firms to cut energy costs and improve reliability of electricity supply amid continued inefficiencies in the national grid.
Kenya Power, the national electricity distributor, saw its revenues fall to Sh219.2 billion in the year ended June 2025, down from Sh231 billion the previous year, partly due to the impact of lower tariffs.
Meanwhile, Carbacid posted a net profit of Sh1 billion in the year ended July, compared to Sh843.2 million recorded a year earlier.
