Kenchic Invests $1 Million in Solar Energy to Cut Poultry Processing Costs

Kenchic, a prominent player in the poultry industry in Kenya, has made a strategic move to adopt solar energy, joining the ranks of companies seeking cost-effective and reliable power solutions. With a significant investment of $1 million (Sh160.5 million) in solar panels, Kenchic aims to reduce its power expenses by up to 33%, distancing itself from the expensive and erratic supply provided by Kenya Power.

1. Financial Impact and Savings: Kenchic’s commitment to solar energy is anticipated to result in substantial savings. The company foresees an annual cost reduction of up to Sh25 million, leading to a swift recovery of the $1 million investment within just four years. Managing Director Jim Tozer highlighted that the Japanese Government played a pivotal role, covering 25% of the total cost, amounting to $250,000 (Sh40.6 million).
2. Operational Benefits: The solar panel installation at Kenchic’s meat processing plant in Thika boasts a production capacity of 843 Kilowatts, while the hatchery installation contributes an additional 481 Kilowatts. This combined capacity of 1.32 Megawatts (MW) ensures a reliable and uninterrupted power supply crucial for the delicate incubation processes at the hatchery.
3. Source of Funding: Tozer emphasized the significance of the investment, especially considering the company’s continuous need for electricity in both the hatchery and processing plant throughout the day and night. The financial support from the Japanese Government underscores the collaborative efforts to embrace sustainable energy solutions.
4. Impact on Power Bills: The transition to solar energy is expected to result in a substantial drop in power expenses. Specifically, the processing plant stands to benefit from a Sh18 million reduction, while the hatchery will see a Sh14 million decrease, culminating in an annual saving of Sh32 million, representing a notable 33% decrease in power bills.

Conclusion:

Kenchic’s decision to invest in solar energy aligns with the broader trend of businesses in Kenya seeking alternatives to Kenya Power due to frequent and prolonged outages. The move not only demonstrates financial prudence but also positions Kenchic as a leader in sustainable and reliable energy practices within the poultry industry. As the nation grapples with power reliability issues, this shift serves as a beacon for other companies to explore renewable energy sources and contribute to a more resilient and cost-effective business environment.