Entrepreneurs in Nairobi make the case for going solar

· Source: MIT Technology Review · Field: Business & Management — Entrepreneurship & Start-ups, Operations & Process Management · Depth: Fundamental Awareness, quick

Summary

Kenya is leveraging off-grid solar technology to achieve universal electricity access by 2030, particularly as 25% of its communities lack centralized power. The economics of solar have improved significantly, with panel costs dropping from about \$3 a watt to cents. Agsol, a company based near Nairobi, is a key player, designing solar-powered grain mills. Milcah Wanjiru, a Nairobi entrepreneur, uses an Agsol mill, which she started using in December 2025. Her business is more profitable, as diesel mills allocate 40% of charges to fuel, while Agsol's solar mill can be up to 80% more profitable after its initial \$1,300 cost is recouped in 6-12 months. Agsol, launched in 2018, has sold 530 units and raised over \$4 million in investment, expanding orders to Mozambique and Angola.

Key takeaway

For entrepreneurs considering new ventures in off-grid or energy-scarce regions, investing in solar-powered equipment like grain mills presents a compelling economic opportunity. Your business can achieve up to 80% higher profitability compared to diesel alternatives, with initial costs recouped in 6-12 months. This shift not only reduces operational expenses but also expands your customer base by offering flexible service options.

Key insights

Off-grid solar mills offer significant economic advantages for small businesses in underserved regions.

Principles

Method

Agsol designs solar-powered grain mills that can also run on grid electricity, offering a hybrid solution for rural and low-income urban areas.

In practice

Topics

Best for: Entrepreneur, Investor, Consultant

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Editorial summary, takeaway, and curation by AIssential. Original article published by MIT Technology Review.