SBM Bank Kenya has committed $17 million to Safer Power Group to expand local manufacturing of electrical equipment used in power and renewable-energy projects, supporting Kenya’s efforts to build domestic clean-energy supply chains, Africa Sustainability Matters reported.
The financing will support a new manufacturing facility and increased production of switchboards, control panels, distribution boards, meter boards, changeover systems and battery racks.
Safer Power, a Kenyan engineering and energy company and licensed panel builder for Schneider Electric, plans to use the funding to expand its manufacturing capacity for equipment used in power generation, distribution and industrial applications.
The investment comes as demand for renewable-energy and electrification infrastructure increases across East Africa. According to IMARC Group, the region’s renewable-energy market was valued at $4.3 billion in 2025 and is projected to reach $7.1 billion by 2034, driven by rising electricity demand, infrastructure investment, availability of renewable resources and falling technology costs.
The SBM-Safer Power agreement also highlights a broader shift in Kenya’s energy transition, from reliance on imported clean-energy equipment towards developing domestic manufacturing and engineering capabilities.
Renewable-energy projects require more than generation assets such as solar panels, wind turbines and geothermal facilities. Electrical equipment, grid infrastructure, battery-storage systems and control technologies are essential for connecting renewable power to grids, industries and consumers.
Local manufacturing of such equipment could shorten supply chains, reduce exposure to foreign exchange fluctuations and international shipping disruptions, and improve access to maintenance and technical services.
Safer Power Chief Executive Dalmus Mbai has highlighted high upfront capital requirements, limited access to credit and dependence on imported supply chains as challenges facing manufacturers. The new financing is expected to help address some of these constraints by supporting machinery, factory expansion and increased production.
The deal also underscores the growing role of commercial banks in financing Africa’s energy transition. While renewable-energy investment has traditionally relied heavily on development finance institutions and international investors, commercial lending is increasingly supporting businesses across the clean-energy value chain.
For Kenya, the potential benefits extend beyond energy supply. Expanding local production could create opportunities in engineering, fabrication, installation, maintenance and other supporting industries while retaining a greater share of clean-energy investment within the domestic economy.
Safer Power’s expansion comes as Kenya continues to develop its renewable-energy sector and could also create opportunities to serve markets elsewhere in East Africa. The regional power market was valued at 21.7 GW in 2025 and is projected to reach 29.2 GW by 2034, according to IMARC.
The company is also developing capabilities in emerging clean-energy areas, including green hydrogen, indicating a broader strategy to combine manufacturing with new energy technologies.
The longer-term challenge will be to ensure that local manufacturing develops beyond the assembly of imported components and builds capabilities in engineering, design, fabrication, testing and maintenance.
For Kenya and the wider region, the financing represents an opportunity to link renewable-energy expansion with industrial development, helping build the domestic expertise and manufacturing capacity needed to support Africa’s growing clean-energy economy.
