The Real Cost of Power Outages in Kenya
Before calculating generator ROI, understand what outages actually cost you.
Business Outage Costs
Direct Costs:
- Lost sales during outage
- Spoiled inventory (restaurants, supermarkets)
- Production downtime
- Equipment damage from sudden shutoff
- Data loss
Indirect Costs:
- Customer dissatisfaction
- Employee idle time
- Missed deadlines
- Reputation damage
- Overtime to catch up
Home Outage Costs
- Spoiled food (fridge/freezer)
- Security system downtime
- Work-from-home disruption
- Inconvenience and discomfort
- Health equipment interruption
Calculating Your Outage Cost
For Businesses
Formula:
Hourly Revenue x Outage Hours x Outage Frequency = Annual Outage Cost
Example - Small Restaurant:
- Hourly revenue: KES 5,000
- Average outage: 3 hours
- Outages per month: 6
- Annual cost: 5,000 x 3 x 6 x 12 = KES 1,080,000/year
For Homes
Consider value of:
- Frozen food (KES 5,000-20,000 per spoilage event)
- Work disruption (hourly wage x hours lost)
- Security concerns
- Comfort and convenience
Generator Total Cost of Ownership
Initial Investment
| Item | Typical Cost |
|---|---|
| 20kVA Generator | KES 600,000-900,000 |
| ATS | KES 60,000-120,000 |
| Installation | KES 40,000-80,000 |
| **Total Initial** | **KES 700,000-1,100,000** |
Annual Operating Costs
| Item | Annual Cost |
|---|---|
| Fuel (200 hrs @ 4L/hr @ KES 190) | KES 152,000 |
| Maintenance | KES 25,000-50,000 |
| Parts | KES 10,000-20,000 |
| **Total Annual** | **KES 187,000-222,000** |
ROI Calculation Examples
Example 1: Small Business
Investment: KES 900,000
Annual outage losses prevented: KES 600,000
Annual operating cost: KES 200,000
Net annual benefit: KES 400,000
Payback period: 2.25 years
Example 2: Medium Manufacturing
Investment: KES 2,500,000
Annual outage losses prevented: KES 2,000,000
Annual operating cost: KES 500,000
Net annual benefit: KES 1,500,000
Payback period: 1.7 years
Example 3: Home User
Investment: KES 350,000
Annual food spoilage avoided: KES 60,000
Security value: KES 30,000
Convenience value: KES 50,000
Annual operating cost: KES 40,000
Net annual benefit: KES 100,000
Payback period: 3.5 years
Making the Decision
Generator is clearly worth it if:
- Monthly losses exceed KES 50,000
- Critical operations depend on power
- Outages are frequent (4+ per month)
- Safety/security concerns are high
Consider alternatives if:
- Outages are rare (1-2 per month)
- Losses are minimal
- Budget is very limited
- Can easily relocate during outages
Contact Emerson EiMS
Let us help you calculate your specific ROI:
- Phone: +254 768 860 665 / +254 782 914 717
- Email: info@emersoneims.com
- Free consultation available