Leading solar energy provider, Sun King, has signed a $156 million (KES 20.1 billion) agreement with the East African nation, Kenya, to expand clean energy, marking the largest of its kind in Sub-Saharan Africa outside South Africa.
The company announced on Monday that the transaction will enable 1.4 million low-income Kenyan households and businesses to access clean energy, transitioning from polluting sources like kerosene and diesel to affordable solar solutions.
Moreover, the deal outlines Sun King’s dominant role in Kenya’s off-grid energy sector, where nearly one in three households currently relies on its solar products.
The deal’s financial structure
According to the firm’s statement, the transaction was arranged and structured by Citi, with Stanbic Bank Kenya Ltd, part of the Standard Bank Group, acting as the placement agent.
Moreover, the deal is backed by a consortium of financial institutions, including Absa Bank Kenya, Citi, Co-operative Bank of Kenya, KCB Bank Group, and three development finance institutions, such as British International Investment, Dutch development bank FMO, and Norfund (Norwegian Investment Fund for Developing Countries).
In addition, this securitisation is the first in the region to be majority-funded by commercial banks, signaling strong confidence in pay-as-you-go solar models.
“This deal signals a major turning point for green energy finance in Africa,” said Anish Thakkar, Sun King’s Co-Founder.
“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,” added Thakkar.
Model for energy access and implications
The securitisation leverages future customer repayments from Sun King’s pay-as-you-go model, which allows households to access solar products through affordable daily payments starting at $0.19 (KES 25) via mobile money.
This financing converts these payments into investable assets, enabling Sun King to raise long-term local currency debt.
Jorge Rubio Nava, Citi’s Global Head of Social Finance, said:
“This securitisation demonstrates the effectiveness of pay-as-you-go business models to reach underserved communities at scale and the role of development finance institutions to mobilise private capital.”
He noted its alignment with the World Bank and African Development Bank’s Mission 300 initiative to connect 300 million Africans to electricity by 2030.
This transaction builds on Sun King’s $130 million securitisation transaction completed in 2023 to finance 3.7 million solar products and smartphones in Kenya.
