When Ravine Diaries ventured into the competitive dairy market a year ago, the excitement among its founders and stakeholders was palpable. With a strong commitment to quality and innovation, the company aimed to carve a niche for itself in the ever-growing demand for fresh milk, not only in Nakuru but beyond its borders. Their vision was clear: to provide a superior product that is nutritious and meets consumer needs.
Initially, the atmosphere at the company was filled with enthusiasm. During the first few months of operations, the facility conducted trials to test machinery, and power usage was minimal. The head of processing, Kelvin Kilonzo, recalls, “We could not feel the impact of our electricity costs during the early months.” However, as the business transitioned to full commercial operations six months later, the challenges quickly became apparent.
The most pressing issue was the skyrocketing operational costs, particularly an electricity bill that soared to Sh1.2 million monthly. This situation cast a long shadow over the company’s profitability prospects and forced the management to reconsider its strategy. Initially, the power system at the factory relied on electricity supplied by the Kenya Power and Lighting Company, supplemented by generators as a backup.
In June, an energy audit was conducted to streamline operations, revealing that operational costs, particularly electricity, were significantly higher than anticipated. The company recognized the urgent need for far-reaching measures, leading to a pivotal decision to invest in solar energy. This move would ultimately reshape their operations.
Embracing Solar Energy
A month later, with the support of Kenya Commercial Bank’s (KCB) green lending program, Ravine Diaries made the transition to solar energy. This decision not only promised to dramatically reduce electricity costs but also aligned with a broader commitment to sustainability. Kilonzo noted that the benefits were evident almost immediately. “After the necessary cost-cutting interventions, we have been receiving a power bill from KPLC of Sh600,000, down from what we used to pay,” he explained.
The switch to solar energy has saved the company significant amounts of money, allowing it to reinvest in product quality and expand its revenue base. With newfound financial stability, Kilonzo expressed optimism about their growth plans. “We are now planning to expand our market to all other major towns across the country,” he said.
Currently, Ravine Diaries engages in value addition on milk, producing products such as maziwa lala (fermented milk) with a shelf life of 30 days and yoghurt, which can last for 90 days. Milk received at the factory undergoes rigorous quality control standards. Dan Kiprotich, a receptionist at the facility, explained that milk samples are tested in the laboratory to ensure they meet required fat content, pH value, and are free from harmful pathogens or contaminants.
Training for Quality
To maintain these high standards, Ravine Diaries offers training to farmers who are key suppliers through its outreach programs. Martha Muthoni from Quality Control emphasized the importance of educating farmers on best feeding practices to ensure they produce the highest quality milk. “We have identified them. We train them on the best feeding practices and also provide necessary support,” she stated.
The company is also conducting trials on cheese, butter, fresh milk, and ghee to meet the growing demand for diverse dairy products.
A Greener Factory
The factory, located approximately 18 km west of Nakuru Town, reflects a significant shift towards greener practices. The sound of machinery harmonizes with the gentle hum of solar panels, marking a departure from the loud generators typically heard in most processing facilities. Processing takes place daily between 9 am and 4 pm using solar power, with generators and electricity from KPLC reserved only as backup.
The solar setup generates over 1,000 kilowatts of power, with solar energy accounting for approximately 85% of this production. “We collect our milk in the evening and by 6 am, we do deliveries to the factory before we begin processing,” Kilonzo shared.
A key feature of this facility is its commitment to environmental conservation, evident in the well-manicured lawns and the trees and fruit seedlings that adorn the landscape. Even under the intense afternoon sun, the compound remains lush and green, showcasing the company’s dedication to sustainability.
One of the standout features is the Effluent Treatment Plant (ETP), established in collaboration with KCB. This facility ensures that water treated here is not wasted; instead, it is recycled for irrigation, supporting the gardens and a potato farm owned by the company. Kilonzo noted that establishing the recycling plant was driven by the necessity to emit clean water into the environment.
Managing Wastewater
Steven Koech, who oversees the Reverse Osmosis (RO) plant, explained the significance of the ETP. He noted that without such systems, the factory could face severe operational challenges. The ETP treats wastewater discharged from the factory to remove pollutants before it is sent to the RO plant. “After the ETP processes the wastewater, RO can be used as a final step to further purify the effluent, producing high-quality water suitable for reuse or discharge,” Koech elaborated.
Treated water from the ETP is utilized in applications like cooling systems and irrigation, demonstrating the company’s commitment to sustainable practices.
KCB’s Commitment to Green Financing
KCB’s green lending program aims to support the transition to green energy in alignment with the government’s sustainability goals. Gaining accreditation from The Green Climate Fund in November 2020, KCB became the first lender in Kenya to finance climate mitigation and adaptation projects through green financing.
The bank has set ambitious targets to grow its green lending portfolio by at least 15% over the next three years. In its latest report, KCB revealed that loans worth Sh615 billion for environmental and social risks were screened in 2023. This represents half of the Group’s loan book, highlighting its dedication to sustainable finance.
Additionally, KCB approved green loans worth Sh21.4 billion, making up 15.5% of the total loan portfolio in 2023. This initiative underscores KCB’s commitment to community-focused efforts that create sustainable value for all stakeholders. The green loans disbursed by KCB are directed towards projects in e-mobility, climate change adaptation and mitigation, energy efficiency, and renewable energy.
This commitment was documented in the 2023 KCB Group Environmental, Social, and Governance (ESG) and Sustainability Report, launched on August 20, which highlights the Group’s progress towards its sustainability commitments.
Conclusion
Ravine Diaries’ journey into the dairy industry showcases the transformative impact of adopting green energy solutions. With KCB’s support through its green lending program, the company has not only reduced its operational costs significantly but also positioned itself as a leader in sustainability practices within the industry.
As the company expands its market reach and continues to innovate, it sets a benchmark for other businesses aiming to integrate sustainability into their operations. The collaboration between KCB and Ravine Diaries exemplifies how financial institutions can play a crucial role in fostering environmentally friendly practices while driving economic growth.
