NAIROBI, KENYA – Vivo Energy Kenya’s pioneering initiative to install solar power systems at its Shell-branded service stations was awarded the prestigious Sustainability and Climate Resilience Award at the TUKO.co.ke Business Leaders Awards 2025 gala held in Nairobi on Wednesday, November 26. The award highlights a significant trend of corporate-led climate action in Kenya, aligning with national goals for a sustainable economy.

The annual awards ceremony, now in its third year, celebrates businesses and executives who demonstrate outstanding innovation, community impact, and resilience in shaping Kenya's economic landscape. Jacob Otieno, Managing Editor at TUKO.co.ke, stated that the awards aim to inspire the next generation of business visionaries by showcasing stories of enterprise and community building.

Vivo Energy’s winning project involves the installation of solar photovoltaic (PV) systems at more than 30 of its Shell service stations and its main depot in Nairobi. According to company statements, this strategic shift to renewable energy is designed to cut electricity costs at each facility by approximately 20% during daytime hours, reducing reliance on the national grid and lowering the company's overall carbon footprint.

In his acceptance speech, Vivo Energy Kenya Managing Director Peter Murungi, who has led the company since 2019, emphasized the initiative's dual benefits. “This award is a testament to our unwavering commitment to sustainable business practices. By harnessing solar energy, we are not only making our operations more efficient and resilient but also actively contributing to Kenya's climate goals,” Murungi said. “Our vision is to continue expanding this program, demonstrating that profitability and environmental stewardship can, and should, go hand in hand.”

A Strategic Hedge Against Rising Energy Costs

The move towards solar adoption by major corporations like Vivo Energy is increasingly seen as a vital economic strategy in Kenya. Businesses have faced significant pressure from fluctuating and rising electricity tariffs, with commercial rates increasing by approximately 58% between January 2021 and 2024. This volatility, coupled with periodic power outages, disrupts operations and impacts profitability.

By investing in on-site solar generation, companies can achieve greater energy independence and predictable, lower operational costs. Experts note that commercial solar installations in Kenya typically have a return on investment period of four to seven years, after which the electricity generated is virtually free for the 20-25 year lifespan of the panels. This makes solar an attractive long-term investment for reducing overheads and enhancing business continuity.

Private Sector Drives Kenya’s Green Transition

Vivo Energy's success is emblematic of a broader movement within Kenya's private sector to lead the charge on renewable energy. While the government has set an ambitious target to achieve a fully green grid by 2030, active participation from corporations is critical to realizing this vision. Kenya already generates over 90% of its electricity from renewable sources, primarily geothermal and hydropower.

Supportive government policies, including VAT exemptions on solar products and net metering regulations, have further incentivized this corporate shift. Other major companies, such as Bidco Africa and East African Breweries Limited (EABL), have also made significant investments in solar power for their manufacturing plants, underscoring a competitive trend towards sustainability.

The TUKO.co.ke Business Leaders Awards 2025 also recognized other leaders for their contributions. Allan Kilavuka, CEO of Kenya Airways, received an award for the airline's investments in Sustainable Aviation Fuel (SAF), while Airtel Kenya's CEO Ashish Malhotra was honored for the company's work in bridging the digital divide. The recognition of Vivo Energy’s solar project, however, places a firm spotlight on the tangible steps the energy distribution sector is taking to align with a greener future, setting a powerful precedent for industries across East Africa.