Kenyan solar energy giant, Sun King has raised a landmark $156 million through a local-currency securitization to bring affordable clean power to more than 1.4 million low-income households and businesses across the country.
Founded in 2007, the company has already provided nearly 10 million Africans with solar energy through its innovative pay-as-you-go model, which allows customers to make daily payments starting at just $0.19 via mobile money.
“Millions of off-grid households have switched to solar thanks to small ‘pay-as-you-go’ loans,” said Anish Thakkar, Sun King’s co-founder.
“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.”
Another Landmark Deal for Africa’s Energy Sector
The securitization, according to experts, could be described as a historic move for African renewable energy.
It is the largest securitization ever completed in Sub-Saharan Africa outside South Africa, arranged by Citi with Stanbic Bank Kenya Ltd serving as placement agent.
The deal was backed by five international and local commercial banks and three development finance institutions, underscoring the growing confidence of both domestic and global investors in Africa’s clean energy market.
It also follows Sun King’s 2023 $130 million securitization, highlighting the company’s ability to repeatedly attract major financing.
Scaling Affordable Power, Improving Air and Health Quality Outcome
Sun King has pioneered a pay-as-you-go solar financing model that allows customers to purchase solar systems without upfront costs, instead paying small daily or weekly installments through mobile money platforms.
To date, the company has extended $1.3 billion in solar loans to nearly 10 million customers across Africa.
The newly raised funds are expected to replace expensive and polluting energy sources like kerosene, diesel, and candles, which are still widely used in rural Kenya.
This transition not only improves air quality and health outcomes but also lowers household energy costs in the long term.
Local Banks Step In
Traditionally, renewable energy projects in Africa have relied heavily on international aid and donor support. This deal signifies a shift, with African commercial banks now taking a more active role in financing clean energy infrastructure.
By converting future customer payments into investable assets, the securitisation allows Sun King to raise long-term debt in Kenyan shillings rather than foreign currencies, reducing the risks of exchange rate fluctuations.
Stressing that such financing models could help bridge the continent’s massive energy access gap, the CEO, Thakar expresses that.
“Return-seeking, local capital in local currency is essential to unlocking the scale and speed needed to achieve universal energy access.”
The Bigger Picture in African Energy Shift
Across Africa, more than 600 million people still lack access to electricity, according to the International Energy Agency. In Kenya alone, despite progress, millions ofA households remain off the national grid.
Industry analysts say that scalable models like Sun King’s could play a pivotal role in meeting the United Nations’ Sustainable Development Goal 7, which calls for universal access to affordable, reliable, sustainable, and modern energy by 2030.
Talking Points
The $156 million Sun King securitisation marks a turning point for Africa’s renewable energy sector, proving that clean power can be both socially transformative and commercially viable.
By enabling over 1.4 million Kenyan households to access affordable solar energy through a pay-as-you-go model, the deal demonstrates how innovative financing can reduce reliance on costly, polluting fuels while drawing serious backing from local banks.
Its relevance to Nigeria is striking: in a country where unreliable power supply and exploitative tariffs leave millions dependent on generators, such a model could bypass entrenched distribution companies.
It would empower low-income households and small businesses with reliable electricity, and strengthen economic growth.
Ultimately, Sun King’s approach offers a blueprint for African nations to achieve energy independence and sustainable development through locally driven, scalable solutions.
