Since 2021, the Efficiency for Access Research and Development Fund has supported the social enterprise, Adili Solar Hubs, to establish a cold chain in Lake Turkana, Kenya.
Adili Solar Hubs is a social enterprise dedicated to transforming the fish value chain in Kenya. By setting up a solar-powered cold chain hub that directly purchases, cleans, and packages fish from local fisherfolk, Adili is positioning Lake Turkana as a key supplier in Kenya’s fresh fish market.
In this interview, Kimani Gichuche, Executive Director of Adili Solar Hubs, shares Adili’s inspiring journey, the challenges they have overcome, and the new market opportunities that have emerged along the way.
What inspired Adili Solar Hubs, and how did the partnership with the Efficiency for Access Research and Development Fund, along with other donors, help bring your vision to life?
In 2016, GIZ commissioned me to conduct a cooling needs assessment for fish, meat and dairy value chains in three locations including Lake Turkana.
At the time, fisherfolk around Turkana didn’t have any cooling facilities, so they would sell their catch as soon as possible. My idea was to introduce ice to this value chain. By 2019, I assembled a team and sought funding to launch Adili Solar Hubs, leading us to the Efficiency for Access Research and Development Fund. Chris Beland and Bejun Bakrania from the R&D team helped us a lot to improve our proposal, and connected us with important stakeholders, like Power Africa, to improve our project design.
Our initial plan involved setting up an ice flake machine and water treatment system to provide clean ice and clean water. However, during an initial scoping exercise, I recognised that ice alone was insufficient. There is a need for cold storage facilities to ensure the fish remained fresh until it reaches the market. In 2021, we signed the contract with the Efficiency for Access R&D Fund which helped us procure chest freezers and ice making machines, turning my vision into reality. Additionally, we secured grants from the United States African Development Foundation (USADF) with which we bought the cold room.
What were the three main challenges you faced while initially setting up the cold chain hub?
Land, power and accommodation were our three biggest challenges.
First, we didn’t have sufficient funds to purchase land. After discussions with the county government, we were allocated land in Kalokal. However, the site was prone to encroaching water, and we struggled to get the formal land agreement in place.
Given these hurdles, we opted to set up Adili Solar Hubs in Long’ech, where a mini-grid already existed. Since we didn’t have funds to install our own power system, we set up an arrangement with NalOffgrid, the mini-grid installer in the area who agreed to lend us the land in exchange for our promise to buy power from their grid.
Another challenge was finding accommodation for our team. The nearest town to Long’ech is Lodwar, 60km away, making daily commuting impractical. At first, we relied on tents and camped on-site, but the harsh sun and strong winds caused tents to degrade quickly. Eventually, we adapted to the local conditions and learned to sleep outside like many in the community. The village chief kindly provided space in his house for our female staff.
How did you build trust with the community and establish a relationship with the fisherfolk?
From the beginning, we were transparent with the community about our objectives. Our main goal was to increase their income and improve access to clean water. At the time, fish was being sold for six times less than we promised them, and clean water was seven times more expensive than our proposed rates.
We did struggle to gain the support of community leaders. Some expected monetary compensation for permission to operate in the area. However, they ultimately agreed because they saw the value of the project and the long-term benefits it would bring the community.
Following this, we conducted a meeting with the village community, locally called Bbaraza, where we explained our plans and ensured that the community was part of the discussions and understood the benefits of the project.
How do you ensure the financial sustainability of the cold chain hub?
Financial sustainability comes down to profitability and cost reduction. Initially, we were paying KES 46 per kWh per day and KES 59 per kWh per night, which made ice production costly. To be profitable, we needed to sell ice at KES 20 per kilogram, but our competitors connected to the national grid could sell it for KES 10 per kilogram, putting us at a disadvantage. To reduce operational costs, we are now transitioning to our own solar system, which has a payback period of 11 months.
On the revenue side, we needed to process seven tons of fish from our hub every week to break even. However, the facility’s capacity was only 3.5 tons, meaning expanding the hub and moving to value-added products would help address these issues and bring us higher margins.
What’s next for Adili Solar Hubs?
In the coming years, we hope to focus on developing a highly efficient, locally assembled, ice-making machine.
Off-the-shelf ice machines have fixed-speed compressors that don’t allow for reducing the starting current. We’ve researched variable-speed compressors, which gradually ramp up power, reducing starting current and overall energy consumption. For example, producing energy at 1000 rpm instead of a fixed speed of 2000 rpm reduces compressor energy consumption, making it an efficient solution. Our goal is to build an ice manufacturing unit using locally sourced compressors and condensing fans. Local manufacturing addresses the challenge of transporting large-scale equipment. Current ice machines have fixed-speed compressors, but variable-speed compressors are more compatible with efficient solar systems. We’ve researched and aim to develop our own efficient machines to further reduce costs.
What advice would you give to social entrepreneurs looking to implement similar initiatives in remote areas?
- Resilience and patience are key: Challenges will arise from every angle, but it is important to stay committed and adapt to the situation.
- Prioritise community engagement: Success depends on how well your vision aligns with the community’s needs. Approach it as a learning process, understand their challenges first, and then tailor your solution to meet those needs.
- Build a sustainable business model: It is critical that our model works for the community. Fisherfolk typically sell their catch quickly to avoid spoilage and maximize profit. They are not interested in investing in cold storage but in getting the most money for their stock. Therefore, we partnered with stakeholders in the value chain who need cold storage like market vendors, restaurants.
Integrate community ideas into your solution: Remote areas often have tightly knit communities who care deeply about what is happening in their area. Approach them with humility, engage in conversations, and to listen to their ideas. Hold meetings at the community level where they can share their thoughts, concerns and suggestions. Where possible, integrate their suggestions in your activities to ensure long-term viability of your projects.
You can find the full report here: https://efficiencyforaccess.org/publications/enhancing-kenyan-fisheries/
Video: https://youtu.be/CdNycG14DsQ
Managed by Energy Saving Trust, the Efficiency for Access R&D Fund is supported by UK aid from the UK government via the Transforming Energy Access platform, and the IKEA Foundation.