Rural areas: How home owners are going green

Hellen Nafula still remembers the sceptical looks from her neighbours in Bungoma when she spent Sh450,000 on solar panels and rainwater harvesting systems five years ago. Today, those same neighbours are asking for advice.

“The students in my household are now able to study anytime they want, and it has translated to good performance in school,” the 60-year-old farmer explains.

When Peterson Nyambare, a resident of Ngoigwa estate, Thika, was in the process of building his home in 2023, he decided to install a bio digester system for Sh38,000, less than half the price of a septic tank.

“It took just two hours, and it was done,” says the 46-year-old. “My neighbour also installed a biodigester. I'm a reference point where I live.”

Nafula and Nyambane embody a paradox reshaping Kenya's housing market: while banks pour billions into eco-friendly home loans and developers race to offer green solutions, its rural communities, not urban dwellers, leading the green housing revolution.

Counties like Homa Bay and Siaya boast more than 50 per cent adoption rates of solar energy uptake according to the Kenya Institute for Public Policy Research and Analysis, while urban centres like Nairobi and Kiambu lag dramatically at less than two per cent adoption, despite having far greater access to financing and green technology providers.

The economics of going green
Edwin Kirugo’s phone rings constantly with calls from across the country—homeowners tired of septic tank failures, developers seeking alternatives, families wanting something different. His company, Bio Tank Africa, has completed over 3,000 biodiversity sanitation system installations in seven years.

“The beauty of our product is simplicity,” explains Kirugo, the Managing Director and founder. “Your existing plumbing contractor can plug and play our solution. No separate contractor needed,” he says, describing how his bio-systems can handle everything from a single family unit to 40-user apartment complexes.

Recently, Absa Bank Kenya unveiled the country's first Eco-Home Loan, offering 110 per cent financing for green upgrades, directly addressing the upfront cost barrier deterring urban adoption.

The timing reflects unprecedented industry momentum. Absa channelled Sh47 billion into sustainable finance in 2024, joining KCB Group (Sh53 billion in green loans), Equity Bank (Sh24 billion committed in 2023), and others in a green financing race.

Absa Bank CEO Abdi Mohamed frames the approach around collaboration: “Our destiny is intertwined. We need each other.”

The strategy addresses a crucial insight: surveys show 29 per cent of Kenyan homebuyers prefer green homes and will pay premium prices, but the gap between stated preference and actual adoption suggests barriers beyond mere interest.

Yet financing alone won't drive adoption. Kenya's green housing movement faces infrastructure constraints requiring coordinated solutions, trained contractors, available materials, and reliable supply chains.

“Sun King has been instrumental in providing flexible payments for small and underserved communities,” Nafula explains. “When banks such as Absa fund Sun King, the ripple effect is felt, especially in rural areas.”

Consumer sophistication is growing, pushing companies toward measurable impacts rather than marketing gimmicks. The evolution of Kenya's green finance taxonomy and Central Bank climate risk disclosure requirements creates accountability mechanisms separating serious players from opportunistic ones.

“We need intentional steps and a forward-looking strategy to avoid greenwashing,” warns Nasra Nanda, CEO of the Kenya Green Building Society.

UN Women Kenya Representative Antonia N'gabala emphasises systematic cooperation: “We need to build multi-partnerships that are bold and strategic. We need to make sure our efforts are tangible and the power of finance reaches those farthest from it.”

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