Sun King, the world’s largest off-grid solar energy company, has achieved a groundbreaking milestone by closing a $156 million (KES 20.1 billion) local currency securitisation — the largest ever completed in Sub-Saharan Africa outside South Africa. The financing aims to expand affordable solar energy access to 1.4 million low-income homes and businesses across Kenya.
This innovative financial structure marks a major turning point in green energy finance, especially as it becomes the first securitisation in the region to be majority-backed by commercial banks, showing that local capital can be a powerful driver for local solutions. The deal demonstrates a growing belief in pay-as-you-go solar models and their capacity to deliver both commercial returns and social impact at scale.
The securitisation was arranged by Citi, with Stanbic Bank Kenya Ltd acting as placement agent. Five commercial banks — Absa Bank Kenya, Citi, Co-operative Bank of Kenya, KCB Bank Kenya, and Stanbic Bank — contributed a $125 million senior tranche. An additional $31 million mezzanine tranche was provided by development finance institutions including British International Investment (BII), Dutch development bank FMO, and Norfund, the Norwegian investment fund.
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Sun King’s unique pay-as-you-go model allows customers to acquire solar products with flexible payments starting from just $0.19 (KES 25) per day via mobile money. This model has already helped 10 million customers across Africa switch from harmful fuels like kerosene and diesel to clean, reliable solar power. So far, Sun King has disbursed $1.3 billion in solar loans, making it a trailblazer in last-mile energy financing.
The latest securitisation builds on the momentum of Sun King’s 2023 $130 million deal, bringing the total capital raised through such instruments to over $286 million in Kenya alone. These funds are projected to support the distribution of approximately 3.7 million solar products and smartphones.
Significantly, 30% of Kenyan homes already benefit from a Sun King product, and with this new funding, that footprint is set to expand dramatically. The securitisation also aligns with broader development goals, including Mission 300, a World Bank and African Development Bank initiative aimed at connecting 300 million Africans to electricity by 2030.
Beyond access, the transaction reflects Sun King’s long-term local currency capital strategy, having now raised over $450 million equivalent across Kenya, Nigeria, and Tanzania. This approach mitigates foreign exchange risks, strengthens domestic capital markets, and ensures more affordable financing for consumers.
“This is a signal to Africa’s financial sector — local banks are not only ready but eager to back inclusive clean energy solutions,” said Anish Thakkar, co-founder of Sun King. “It’s a powerful example of how financial innovation can unlock sustainable development at scale.”
By combining forward-looking business models, domestic investment, and development finance, Sun King’s securitisation offers a blueprint for solving Africa’s energy access challenge — and doing it sustainably, affordably, and at scale.
