Sun King, Kenya’s largest provider of off-grid solar energy solutions, has successfully closed a landmark $156 million (KES 20.1 billion) securitisation to accelerate access to affordable solar power across Kenya.
The deal is reportedly the largest in sub-Saharan Africa, outside South Africa, and the first to be majority-backed by commercial banks.
The deal is backed by five commercial banks which include, Absa Bank Kenya Ltd, Citi, The Co-operative Bank of Kenya, KCB Bank Kenya Limited, and Stanbic Bank Kenya Ltd and three development finance institutions—British International Investment, Dutch development bank FMO, and Norfund (Norwegian Investment Fund for Developing Countries).
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The funding will enable 1.4 million low-income households and businesses to gain electricity access, many for the first time, reducing dependence on costly and polluting fuels like kerosene and diesel.
The securitisation is built on the Sun King’s award-winning $130 million transaction completed in 2023. Through its pay-as-you-go model, Sun King allows households to access solar products with small, flexible payments starting from $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 customers across Africa.
Speaking on the funds raised, Anish Thakkar, co-founder of Sun King said,
“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. Local currency capital is essential to unlocking the scale and speed needed to achieve universal energy access.”
Also commenting, Jorge Rubio Nava, Citi’s Global Head of Social Finance, noted that the securitisation underscores the impact of innovative financing models.
In his words, “It demonstrates the effectiveness of pay-as-you-go business models to reach underserved communities at scale and the role of development finance institutions in mobilising private capital.”
Founded in 2007, Sun King designs, distributes, installs, and finances solar energy solutions for the 1.8 billion people without reliable access to electricity. From cost-effective solar lanterns and home systems that provide entry-level access to electricity to powerful, multi-kilowatt-scale solar systems that offer power equity with the traditional electrical grid, Sun King’s products meet diverse power and light needs across Africa and Asia.
Through innovative product design, affordable pay-as-you-go financing, and a grassroots field team of 15,000 agents providing installation and service, Sun King has powered the lives of over 82 million people.
The company currently operates one of the world’s largest direct-to-consumer, pay-as-you-go (PAYG) solar distribution networks, growing by 150,000 new clients per month across seven countries. In Kenya, one in five people use Sun King, with 18 million Kenyans benefiting from its operations over a decade.
According to GOGLA, the global association for the off-grid solar energy industry, Sun King now accounts for 38% of industry-wide PAYG solar revenue. This growth has eliminated 22 million tons of carbon dioxide emissions and saved consumers $4.4 billion in energy costs.
Continuing its mission to provide energy independence, the company recently expanded its solar inverter line with the launch of the PowerPlay Pro. This new product is designed to offer an uninterrupted power supply to homes and businesses, further solidifying Sun King’s leadership in the off-grid solar industry.
With this new funding, Sun King already powering 30% of Kenyan homes, plans to finance approximately 1.4 million solar products and smartphones in Kenya. Combined with its 2023 securitisation, the two transactions will support the delivery of around 3.7 million solar products and smartphones.
Looking ahead, the company plans to expand its presence in existing markets and explore new regions where solar energy can make a significant impact.