The Sun King deal is backed by commercial banks, bolsters local‐currency energy finance and accelerates Kenya’s off‑grid solar expansion.
Sun King, a leading off‑grid solar energy provider, has closed a landmark US $156 million securitization to dramatically scale access to affordable solar energy across Kenya. The deal is structured in local currency and is the largest to take place outside of South Africa.
Financing Structure and Backers
The transaction was arranged by Citi, with Stanbic Bank Kenya Ltd serving as placement agent, and is supported by five commercial banks—Absa Bank Kenya, Citi, The Co‑operative Bank of Kenya, KCB Bank Kenya and Stanbic—as well as three development finance institutions: British International Investment, FMO and Norfund. Both senior and mezzanine tranches were privately rated and issued under Sun King’s Sustainable Financing Framework, which has earned a “Very Good (SQS2)” Second‑Party Opinion from Moody’s Investor Relations.
Pay‑As‑You‑Go Model Scales Impact
Sun King enables users to pay daily amounts as low as US $0.19 (KES 25) via mobile money for solar kits, enabling even low‑income households to adopt clean energy solutions. The company has extended US $1.3 billion in solar loans to nearly 10 million customers across Africa to date.
This deal is projected to deliver solar systems and smartphones to approximately 1.4 million households and small businesses in Kenya, many for the first time connected to electricity. Together with Sun King’s prior $130 million securitisation in 2023, the two transactions support delivery of an estimated 3.7 million solar units. Currently, about 30% of Kenyan homes are served by Sun King systems.
Strategic Significance for African Green Finance
“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.”
Jorge Rubio Nava of Citi added: “This securitization demonstrates the effectiveness of pay-as-you-go business models to reach underserved communities at scale and the role of development finance institutions to mobilize private capital,” said Jorge Rubio Nava, Citi’s Global Head of Social Finance. “Over the last few years, we’ve successfully partnered with Sun King to develop innovative financial tools that bring sustainable and affordable energy solutions to millions of households across Kenya and beyond.”
Sun King’s US $156 million local‑currency securitisation marks a pivotal moment in the evolution of green infrastructure finance in Africa. The deal reflects growing confidence in pay‑as‑you‑go solar as a scalable, investable asset class and offers a powerful template for expanding energy access through market‑driven solutions. For investors and policymakers interested in trade, development and energy, this is a landmark transaction that demonstrates both purpose and profit.
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