Toyota Kenya has acquired a 35 per cent stake in solar installation company OFGEN for an undisclosed value as it seeks to diversify its earnings.
The purchase opens a new revenue source for the company targeting the country’s estimated solar potential of approximately 15,000 megawatts (MW).
The deal follows approval by the Competition Authority of Kenya (CAK) on Tuesday.
“The Competition Authority of Kenya has approved the acquisition of a 35 per cent equity stake in OFGEN Limited by CFAO Kenya Limited unconditionally, thereby enhancing investments in renewable energy in the country,” said CAK.
Toyota acquired OFGEN after it hired the company three years ago to install a 490-panel roof-top solar plant at its headquarters on Mombasa Road in Nairobi with a power capacity of 180kW and an annual energy production of 230,000 kWh.
OFGEN has installed over 30 power plants for firms like Serena Hotels, Strathmore University, and British American Tobacco (Kenya) in the companies’ efforts to reduce reliance on electricity from Kenya Power.
Founded in 2014, OFGEN has built and financed over 30 on-grid and off-grid solar plants across Kenya, Uganda, Rwanda, and South Sudan markets.
