Solar energy in Kenya: Sollatek leading Kenya’s solar energy revolution

Saleem Abdulla, Managing Director of Sollatek Electronics talks about solar energy in Kenya. Kenya has been leading the region in developing solar energy and Sollatek emerged as the largest and leading solar energy company in Kenya. Currenlty, 40% of Sollatek business comes from solar energy.

How do you handle distribution to consumers in the solar energy sector?

In terms of the solar sector, we have set up a distribution network, which we have divided out into regions. This is actually a ‘last mile’ or ‘bottom-of-the-pyramid’ distribution network, where you have your local shop keeper, school teacher or priest, all of whom have become our distributors or agents. They sell into their communities on our behalf. We have set up a sales force that is also very local, meaning our salespeople are from the communities that they are selling into. These are people known to their communities, they speak the same language, there’s trust between them, and they have seen each other growing up, which is what allows us to achieve this, since your ‘bottom-of-the-pyramid’ customer is typically very conservative. They usually don’t want to try or buy anything that their fathers and grandfathers didn’t use, unless it’s offered to them by somebody whom they trust and know within their community, and that’s what we have strived to achieve.

What brings you more revenue: the electronics or the renewable energy side of the business, or is it 50-50?

At the moment, because we have a 20 years’ head start in the power control business and we only went into solar energy about five to six years ago, we are 60 per cent on the power control side and 40 per cent on the solar side.

You are certainly in a sector that’s trending nicely at the moment, as everyone is talking about it. But how is renewable energy perceived in Kenya? Is it well encouraged? How easy is it to operate in this environment and in this sector, when compared to the US or Europe where you have people hailing it as the way forward. How does that work out here, in the region?

I can safely say that this is an area with huge potential. To give credit to the government, they have tried to encourage investment in this sector over the years and have made attempts to scale it up. For instance, imported solar products are untaxed: there is no VAT or duty paid on them. The government has done their part, and they could do a lot more still. I think it’s trendy, as you say. I also believe it’s a genuine opportunity to make a social impact in our country of operation, and I believe there is a real need for solar energy in this part of the world.