Safaricom Power Demand Rises Amid Lagging Renewable Shift

Safaricom, Kenya’s largest telecommunications operator, reported a sharp rise in its power consumption for the financial year ended March 2026, a development that show the growing “safaricom power demand” pressure on its network. The company used 274,531 megawatt‑hours of electricity, a 5.7 percent increase over the previous year, while emissions from electricity purchases, generator fuel and refrigerants grew 9.1 percent to 56,354 tonnes of carbon dioxide equivalent. These figures, disclosed in Safaricom’s 2026 Sustainability Report, signal that the telco’s ambition to broaden its digital services will test its ability to manage rising energy needs and associated costs.

The report attributes the surge primarily to the expansion of network sites, new data centres and a push into cloud‑based services. Adding to the workload, the firm installed solar power at 2,028 sites, up from 1,432 the year before, yet solar supplied only about five percent of total energy use. The national grid still delivered the bulk of power at 78 percent, while diesel generators accounted for the remaining 17 percent. In its own words, Safaricom noted that “grid availability and reliability influence our ability to reduce diesel consumption, while physical constraints at some sites can limit the potential for on‑site solar generation.”

Investment in renewable assets is clearly outpacing the shift in the overall energy mix. The telco upgraded 800 sites with more efficient power systems and paired solar panels with lithium‑ion batteries. Nevertheless, total electricity demand kept climbing. As the company moves beyond mobile connectivity into data‑intensive services, each new centre requires reliable electricity, cooling equipment and backup power. Intermittent supply is not an option, and the need for generators adds to operating expenses, a point Safaricom highlighted when noting that “network expansion continues to influence our overall energy requirements.”

Diesel consumption fell slightly, with 10.08 million litres burned in FY26 compared with 10.47 million litres the year before, yet diesel still represented almost 80 percent of emissions from direct operations. Generators keep network sites running when the grid is unreliable, a condition that persists across many parts of Kenya. Reducing diesel use, therefore, will depend on securing dependable alternatives at thousands of locations, not merely on installing additional solar panels.

Financial incentives are shaping the telco’s energy strategy. Solar installations generated monthly cost savings of roughly KES 16.42 million (about $127,000) in FY26, and Safaricom estimates that replacing diesel with cleaner sources could save more than KES 500 million ($3.9 million) by 2030. The company’s green bond, a KES 20 billion issue that was oversubscribed by 175.7 percent, will fund renewable projects and more efficient network infrastructure. Nevertheless, financing alone cannot resolve technical challenges such as limited space for solar equipment and an unreliable grid that hampers the shift to cleaner power.

Beyond its own solar programme, Safaricom explored power purchase agreements with independent producers to feed its power‑hungry data centres, but no contracts were finalised by the end of FY26. A trial of a hydrogen fuel cell at a single site highlighted further barriers, as fuel availability and capital costs made wider deployment impractical. These alternatives have yet to demonstrate a clear path toward reducing the company’s dependence on grid electricity and diesel at scale.

Emissions intensity tells part of the story. The firm’s emissions per KES million in revenue fell from 0.144 to 0.14 tonnes in FY26, indicating more revenue generated for each unit of emissions. However, total emissions from electricity purchases and direct operations still rose, showing that lower intensity does not automatically translate into absolute reductions. Emissions from the supply chain and other indirect sources dropped to 136,943 tonnes from 226,047 tonnes, a change partly attributed to revised reporting methods rather than substantive environmental gains.

Safaricom’s net‑zero target for 2050 now faces a tougher landscape as expansion continues to lift electricity demand and backup power use. While solar‑powered sites demonstrate progress, a clearer metric of success will be the proportion of the company’s energy that comes from cleaner sources as its portfolio grows. The telco’s energy strategy, which it describes as balancing power stability, cost efficiency and sustainability, must increasingly favour the latter two without compromising network reliability.

The challenges Safaricom confronts are not unique in the Kenyan telecom sector. The national grid, managed by Kenya Power, suffers from periodic outages and load‑shedding, especially in rural and peri‑urban areas where many base stations are located. For operators, the cost of maintaining uninterrupted service often outweighs the environmental appeal of renewable projects, pushing them to retain diesel generators as a safety net. Moreover, Kenya’s renewable energy policy encourages private investment, yet permitting processes and land‑use constraints can slow the roll‑out of large‑scale solar farms that could supply bulk power to telcos.

Looking ahead, Safaricom plans to scale up its renewable portfolio while seeking more reliable grid connections and innovative storage solutions. The company is investing in intelligent shutdown technology that can reduce radio network energy consumption by up to 8 percent, and it continues to combine solar installations with battery storage to smooth out intermittency. The next reporting period will reveal whether the telco can align its ambitious digital growth with the need to curb rising power costs and emissions, a balance that will shape its competitiveness in Kenya’s fast‑evolving telecommunications market.

In the immediate term, Safaricom will monitor the performance of its upgraded sites, pursue additional power purchase agreements where feasible, and assess the viability of expanding hydrogen or other emerging technologies. The outcome of these efforts will determine whether the company can keep “safaricom power demand” on a sustainable trajectory as it pushes deeper into data‑centre and cloud services.