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Eveready shifts to solar and lending after battery business collapsed
Battery manufacturing in process at the Eveready East Africa Ltd plant in Nakuru.
Eveready East Africa has pivoted to clean energy and consumer financing from battery distribution as it seeks to turn around years of losses that have left it in a negative equity position.
The company said in a statement that it is entering into partnerships to deliver solar power, energy storage and clean cooking solutions, while also participating in carbon market initiatives and Electric Vehicle (EV) financing.
Eveready said it is riding on a platform known as the Integrated Clean Energy Platform (ICEP) to partner with Huawei Technologies and Jinko Solar to supply digital power solutions that include supply of commercial and industrial solar inverters and grid-connected systems, residential solar panels and battery backup, and smart energy management and monitoring systems.
The company is also entering the electric mobility market through a partnership with EV Jumla, where they will jointly offer asset backed financing for commercial and private electric vehicles and motorcycles.
“Eveready is reimagining its role in Kenya’s energy future. This transformation reflects our commitment to making clean, affordable, and reliable energy accessible, while building a resilient business positioned for long-term growth,” said Eveready chief operating officer Sonia Karuma.
Nairobi Securities Exchange (NSE) listed-Eveready is looking to ride on the renewable energy segment to repair its equity position which stood at a negative of Sh101 million in March 2024, a result of years of loss making.
The firm’s previous majority owner East Africa Batteries Limited (EABL) sold its 35 percent shareholding to Dubai-based InvestAfrica FZCO in 2023, with the new owners expected to help turn around the company’s losses that culminated in the closure of its dry cell manufacturing plant in Nakuru in 2014, and the auction of an 18.5-acre parcel of land that held the facility in 2016.
EABL, which was associated with the family of the late businessman Naushad Merali under his Sameer Group brand, was formed in 1987 for the sole purpose of holding shares in Eveready.
Eveready blamed the closure of its Nakuru factory that rendered 99 people jobless on increased competition from cheap and illegal products. It subsequently shifted its business model from manufacturing to distributorship of imported battery products to cut operational costs.
The downturn in fortunes also saw the company’s share price at the Nairobi bourse fall sharply after its listing in 2006 at a price of Sh9.50 per unit, which rose to highs of Sh18 shortly after the IPO.
The share is currently trading at Sh1.67 per share, although the news of the change in strategy has seen it gain 28.5 percent over the last three trading sessions at the NSE.
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