Image: Asia Chang, Unsplash
Nairobi headquarters Off-Grid Solar energy company Sun King has completed a $ 156 million deal to expand off-grid Solar installations in Kenya.
Supported by private Kenyan banks and international development financing institutions, securitization is expected to provide loans to support the purchase of approximately 1.4 million solar products and smartphones in Kenya.
Sun King offers a pay-as-you-go solar model with which households have access to its products through flexible payments. The company says that it has issued $ 1.3 billion in Zonne -Loingen to nearly 10 million individual customers throughout Africa.
The new transaction contains two tranches. A senior tranche is funded by Absa Bank Kenya Ltd, Citi, the cooperative bank of Kenya, KCB Bank Kenya Limited and Stanbic Bank Kenya Ltd. A Mezzanine Tranche is supported by British international investments, Dutch Development Bank FMO and Norwegisch Investment Fund Norfund.
Sun King said that the agreement will enable the long-term local currency debts by converting future customer repayments for funded solar products into bastable assets.
Anish Thakkar, co-founder of Sun King, said that the deal is an important turning point for green energy financing in Africa.
“It shows that African commercial banks believe in the power of pay-as-you-go solar and are ready to support it with serious capital,” Takkar added.
The agreement is the second securitization of Sun King in Kenya, after a transaction of $ 130 million in 2023. The company estimates that almost 30% of the Kenyan houses are currently using Sun King Solar Products.
Kenya wants to reach near-universal electricity access by 2030. The cumulative solar capacity of the country was at the end of 2024 at 369 MW, unchanged compared to the previous year, according to the International Renewable Energy Agency (IRENA).
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