Sun King, a leading provider of off-grid solar energy solutions, has successfully closed a $156 million (KES 20.1 billion) securitization deal to scale affordable solar access across Kenya. This landmark transaction is the largest of its kind in Sub-Saharan Africa outside South Africa and is expected to finance approximately 1.4 million solar products and smartphones, benefiting low-income households and businesses that currently lack reliable electricity.
The securitization is structured in local currency and comprises two tranches: a senior tranche funded by commercial banks including ABSA, Citi, The Co-operative Bank of Kenya, KCB Bank Kenya Limited, and Stanbic Bank Kenya Ltd; and a mezzanine tranche provided by development finance institutions such as British International Investment, the Dutch development bank FMO, and Norfund, the Norwegian Investment Fund for developing countries.
Anish Thakkar, Co-Founder of Sun King, emphasized the significance of the deal, stating, “This deal signals a major turning point for green energy finance in Africa. It shows that African commercial banks believe in the power of pay-as-you-go solar and are ready to back it with serious capital.”
Sun King’s pay-as-you-go model allows households to access solar products through small, flexible payments starting from as little as $0.19 (KES 25) per day via mobile money. To date, the company has extended $1.3 billion in solar loans to nearly 10 million individual customers across Africa.
The funds raised will enable Sun King to convert future customer repayments for financed solar products into investable assets, facilitating long-term local currency debt financing. This approach reduces foreign exchange risk and builds confidence among African commercial banks in the off-grid solar sector.
The successful closure of this securitization deal marks a significant milestone in expanding clean energy access in Kenya and demonstrates the growing investor confidence in sustainable energy solutions across Africa.
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