In the very heart of Kenya’s bustling healthcare landscape lies an undeniable reality: hospitals face a pressing energy dilemma. Behind their brightly lit hallways, humming life-saving machines, and laid-back midnight operating rooms, there’s an inexorable financial burden — energy costs. Grid electricity, often unreliable and expensive, has long drained resources meant for critical medical care. This puts hospitals and health systems at great financial risk.
There are whispers that commercial office buildings waste energy by using inefficient methods to keep their interiors well-lit and their occupants cool during the day. Yet, as hospitals operate 24 hours a day, 7 days a week, their energy demands are more monumental than typical office premises. A healthcare facility consumes 2.5 times as much energy and emit 2.5 times as much carbon dioxide as commercial facilities of the same size. To make the situation even more unpleasant, the cost of meeting these energy demands is slowly but surely going through the ceiling.
According to Kenya Power, commercial electricity rates in Kenya stand at approximately Ksh25 per kilowatt-hour, one of the highest tariffs in East Africa. For large hospitals consuming upwards of 500,000 to 1,000,000 kWh annually, that translates to millions of shillings spent each year, funds that could otherwise enhance patient care, buy modern equipment, or expand wards.
The Burden of Energy Costs in Hospitals
Due to their extensive operations and many energy-intensive devices, hospitals are among the most energy-intensive structures, slowing their growth rates. Besides consuming two and a half times as much energy as much energy per square foot as typical office buildings, hospitals use an average of 193,300 BTUs of energy per square foot per year, which is the same as 1.5 gallons of gas for every square foot of space. Hospitals and labs emit 4.4% of the world’s greenhouse gas emissions, according to the International Finance Corporation (IFC).
Miale Solar estimates that if recent price trends held true, hospitals’ energy bills would experience an unrelenting upsurge, and more could be kicked out of business. Say, in the third quarter of 2023, the health sector in Kenya expanded by 5.1%. The value added by health activities to the nation’s Gross Domestic Product (GDP) was 3.7%; this marked an increase in the growth rate. However, operating costs also significantly increased as a result of this growth, especially when it came to energy usage. Approximately 8,800 hours of energy are used annually, with heating accounting for 21%, room air conditioning for 17%, cooling for 15%, and lights for 9%. Hospitals could spend roughly Ksh24,420 – Ksh60,830 per bed every month, which can cause their energy costs to amount to 2% of the nation’s overall energy usage. Using an average cost of KSh25 per kWh as a reference, the average yearly consumption of each hospital bed is 29,199 kWh, or an approximate cost of Ksh729,975 annually. So, a hospital can use 20 tons of CO2 On average.
Why Solar Offers a Sustainable Solution
Solar energy offers a transformative solution. Statistically, 87% of Kenya’s 9,696 medical facilities surveyed rely on the national grid, leaving them vulnerable to outages and price hikes. Meanwhile, only 13% have adopted solar energy, even though solar offers an immediate reduction in operational costs and ensures reliability. This means that an overwhelming majority of hospitals in Kenya are missing out on the benefits of solar energy.
Miale Solar’s anecdotal estimates from Outspan Hospital reveal that solar energy can result in annual savings of 25% to 50%. This is consistent with Lazard’s math. According to Lazard’s calculations, the cost of generating one megawatt of electricity per hour is about Ksh 6,461 for solar power and up to Ksh13,820 for coal, which is nearly double the cost of solar. Additionally, the International Energy Agency (IEA) reports that solar electricity is 20–50% less expensive than grid globally, with regional variations. With the right regulations, and financial models, solar power may provide electricity for less than Ksh2,584 per megawatt-hour (MWh). As of recent data, the price of electricity in Kenya for commercial use is around Ksh25 per kWh, which translates to approximately Ksh25,000 Kenyan Shillings per MWh.
Besides, only 15% of Kenya’s healthcare institutions currently have access to steady, reliable power, while 26% lack electricity altogether. Due to the lack of various investments in power generation and the country’s heavy reliance on geothermal and hydroelectric power, which account for 40.6% and 29.6% of total energy production, respectively, the quality of the energy supply is also poor. It causes power disruptions for Kenyan businesses, costing them an average of Ksh 6.3 million a month. The typical interruption lasts five hours and causes 7% of companies’ losses.
Power is provided by emergency power generators. The energy expenses of these generators, Ksh 176 per litre for diesel, account for almost 30% of the productive capacity.
Solar Energy Trends in Kenyan Hospitals
Miale Solar has been at the forefront of the green energy movement, providing hospitals with solar-powered solutions that reduce operational costs and promote sustainability. The company’s success story is best exemplified by its landmark project at Outspan Hospital in Nyeri, one of the leading examples of solar-powered healthcare in Kenya. At Outspan Hospital, Miale Solar installed a state-of-the-art solar photovoltaic (PV) system that supplies the hospital with reliable, cost-effective energy.
Miale Solar installed a 250 kWp hybrid solar PV system with a 500 kWh battery capacity to provide consistent and affordable energy. The results were extraordinary: The solar system generates 366,005 kWh annually, with 353,463 kWh being directly useful to the hospital’s operations. Energy bills dropped significantly, saving Ksh 1.3 million annually during the lease period and Ksh 14 million annually after system handover. CO2 emissions are reduced by 144,400 kg annually.
Outspan Hospital is now more resilient; during grid outages, life-saving equipment remains operational. Patients and staff no longer fear disruptions during critical surgeries, and resources previously spent on electricity now fund better healthcare delivery. By utilizing solar energy, Outspan Hospital has reduced its reliance on expensive and unreliable grid electricity. With significant savings in operational costs, the hospital can now allocate more resources to improving patient care, purchasing essential medical equipment, and enhancing its overall service delivery.
Also, Makueni County Referral Hospital recently adopted a solar power system to support its operations. Seeing over 500 patients per day, the hospital, which previously struggled with grid outages and high diesel generator costs, now enjoys consistent power and significant savings. However, its operations are expensive. The facility’s electricity costs alone cost the local government around Ksh 24 million ($187,000) annually; this money may be used to improve healthcare or give other services. The county administration has erected a new solar PV system at the institution, which will produce 288 MWh yearly, and would cover 30–33% of the hospital’s electricity needs. The system will assist in supplying a reliable, steady, and clean power source, even during power outages, which are now prevalent in the nation, and save the county government up to Ksh 7 million ($55,000) a year.
Similarly, Meru Teaching and Referral Hospital has installed solar systems to run critical equipment and offset energy bills. As part of a research initiative led by Oxford University, Meru Teaching and Referral Hospital plans to develop a 228kW solar plant, which will save more than KSh1 million in monthly power expenditures. During a blackout, the hospital, which pays up to KSh3 million in power costs each month, must also spend over Sh40,000 per day on fuel. The project entails the installation of 396 solar panels and a smart metering system, according to Dr. Leah Moriasi, executive officer of Meru Teaching and Referral Hospital.
“As a hospital, we will have significant savings in electricity bills, fuel costs, and other inconveniences. Its success will guide future investments,” Dr Moriasi said.
Why Miale Solar Stands Out
Miale Solar is uniquely positioned to capitalize on this trend. Miale’s technical expertise, financing models, and after-sales service — including maintenance and monitoring — position the company as the partner of choice for Kenya’s hospitals.
Hospitals often face financial constraints, but Miale’s flexible Power Purchase Agreements (PPAs) eliminate the need for upfront costs. Under a PPA, Miale builds, owns, and maintains the solar system, while the hospital pays only for the energy consumed—at rates far lower than grid electricity. This model ensures immediate savings, sustainability, and long-term ownership of the system.
Contact Miale Solar today and take the first step toward a brighter, solar-powered future.
