Sun King secures $156 million to expand off-grid solar in Kenya

Sun King has secured a $156 million deal backed by Kenyan banks and international development finance institutions to expand off-grid solar access in Kenya, financing the purchase of about 1.4 million solar products and smartphones.

Nairobi-headquartered off-grid solar energy company Sun King has finalized a $156 million deal to expand off-grid solar installations in Kenya.

Backed by private Kenyan banks and international development finance institutions, the securitization is expected to deliver loans to support the purchase of about 1.4 million solar products and smartphones in Kenya.

Sun King offers a pay-as-you-go solar model that enables households to access its products through flexible payments. The company says it has issued $1.3 billion in solar loans to nearly 10 million individual customers across Africa.

The new transaction includes two tranches. A senior tranche is funded by Absa Bank Kenya Ltd, Citi, The Co-operative Bank of Kenya, KCB Bank Kenya Limited, and Stanbic Bank Kenya Ltd. A mezzanine tranche is backed by British International Investment, Dutch development bank FMO, and Norwegian investment fund Norfund.

Sun King said the agreement will allow it to raise long-term local currency debt by converting future customer repayments for financed solar products into investable assets.

Anish Thakkar, Sun King co-founder, said the deal is 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,” added Thakkar.

The agreement is Sun King’s second securitization in Kenya, following a $130 million transaction in 2023. The company estimates that nearly 30% of Kenyan homes currently use Sun King solar products.

Kenya aims to reach near-universal electricity access by 2030. The country’s cumulative solar capacity stood at 369 MW at the end of 2024, unchanged from the previous year, according to the International Renewable Energy Agency (IRENA).