By The Weekly Vision Business Desk
Kapchorua Tea Kenya PLC, the Nairobi Securities Exchange (NSE)-listed tea producer, has applied to the Energy and Petroleum Regulatory Authority (EPRA) for an electricity generation licence to develop a 1.17-megawatt (MW) solar photovoltaic (PV) plant at its Kapchorua Farm in Nandi County.
The application, published in a public notice under the Energy Act, 2019, seeks approval to construct the solar facility within the company’s estate. Once operational, the plant will supply electricity directly to Kapchorua Tea’s black tea processing factory, reducing its reliance on grid power and supporting more sustainable operations.
The proposed project will be undertaken by Ariya Energy Limited, the engineering, procurement and construction arm of the Ariya Group. The Nairobi-based company specialises in commercial and industrial solar energy projects and has designed and installed more than 25 megawatts of solar PV capacity for businesses across Kenya, Uganda and Tanzania.
In the notice, signed by General Manager Edmon O. Asugo, Kapchorua Tea states that the proposed development “will not have adverse effects on any public or local authorities, companies, persons or bodies of persons within the areas of the undertaking.”
Subject to confidentiality requirements, copies of the licence application will be available for public inspection at the company’s registered office at Karen Office Park, The Acacia Block, Langata Road, Nairobi.
In accordance with the Energy Act, any person wishing to object to or make representations regarding the application has 30 days from the date of publication to submit written comments to EPRA, with a copy served on Kapchorua Tea’s registered office and clearly marked “Energy Act.”
Kapchorua Tea Kenya PLC, a member of the Williamson Group and listed on the NSE under the ticker KAPC, cultivates black CTC tea across approximately 646 hectares in the Nandi Hills.
For the financial year ended 31 March 2025, the company reported revenue of KSh2.22 billion and a net profit of KSh181.2 million, demonstrating resilience despite weaker international tea prices and challenging global market conditions.
Tea processing is highly energy-intensive, with the withering, rolling and drying stages accounting for a substantial proportion of production costs. For many years, tea manufacturers have cited the cost and reliability of grid electricity as key operational challenges, particularly in rural tea-growing regions.
While a 1.17MW solar plant is unlikely to replace grid electricity entirely, it is expected to significantly reduce daytime energy costs, improve energy security and lower the factory’s carbon footprint. The project reflects a broader trend among Kenyan manufacturers and agro-processors to invest in captive renewable energy as they seek to manage operating costs, reduce exposure to rising electricity tariffs and fuel price volatility, and enhance environmental sustainability.
EPRA will now consider the application after the expiry of the statutory 30-day public consultation period before deciding whether to grant the electricity generation licence, taking into account any objections or representations received.
