In a move that underscores growing confidence in green energy finance in Africa, Sun King, an off-grid solar energy company, has closed a US $156 Million (KShs 20.1 Billion) securitisation deal- the largest of its kind ever completed in Sub-Saharan Africa outside of South Africa.
- •The local currency transaction is set to deliver clean, affordable energy to an estimated 1.4 million households and businesses across Kenya, many of whom will be gaining electricity for the first time.
- •The landmark securitisation is backed by five leading commercial banks- Absa Bank Kenya, Citi, The Cooperative Bank of Kenya, KCB Bank Kenya, and Stanbic Bank Kenya- in addition to support from Development Finance Institutions (DFIs): British International Investment (BII), the Dutch Development Bank FMO, and Norfund, the Norwegian Investment Fund for developing countries. It builds on the success of Sun King’s award-winning US $130 million securitisation completed in 2023.
- •The transaction is privately rated by a credit rating agency and issued under Sun King’s Sustainable Financing Framework, which received a Second Party Opinion from Moody’s Investor Relations with a “Very Good” (SQS2) rating- further reinforcing the integrity of the offering under Kenya’s capital market regulations.
At the heart of this initiative is Sun King’s pay-as-you-go solar model, which allows customers to access solar energy systems starting from as little as KShs 25 (US $0.19) per day via mobile money. This inclusive, tech-enabled approach has already seen the company extend US $1.3 billion in solar loans to nearly 10 million individual customers across Africa.
The financing mechanism works by converting expected customer repayments for financed solar products into investable assets, allowing Sun King to raise long-term local currency debt and reinvest in expanding access. It is a powerful model that directly supports Kenya’s push for universal electricity access, especially for rural and low-income communities still reliant on expensive, polluting fuels like kerosene and diesel.
“Millions of off-grid households have switched to solar thanks to small ‘pay-as-you-go’ loans. This deal signals a major turning point for green energy finance in Africa,” said Anish Thakkar, Co-Founder of Sun King. “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. Return-seeking, local capital in local currency is essential to unlocking the scale and speed needed to achieve universal energy access.”
The impact of this transaction will be tangible. In Kenya alone, Sun King already serves an estimated 30% of homes. With this new injection of capital, solar access is expected to grow significantly, and the number of solar products and smartphones delivered will rise to over 3.7 million when combined with the 2023 securitisation.
The deal not only reinforces the viability of pay-as-you-go solar models but also highlights the catalytic role DFIs can play in mobilising private sector capital toward climate and development goals. “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,” said Jorge Rubio Nava, Citi’s Global Head of Social Finance.
The structure and scale of this deal align with broader energy access goals, including the World Bank and African Development Bank-led Mission 300 initiative, which aims to connect 300 million people in Africa to electricity by 2030. The transaction also reinforces the growing consensus that mobilising local currency finance is essential to solving local challenges sustainably.
Through local partnerships and tailored financial structures, Sun King and its backers are showing how capital can be effectively deployed to meet real energy needs in underserved communities.
