Sun King Secures Landmark $156M Deal to Power Kenya’s Off-Grid Revolution
Sun King, a leading provider of solar energy solutions, has announced a groundbreaking KES 20.1 billion ($156 million) local currency securitisation deal. This monumental agreement, the largest of its kind in Sub-Saharan Africa outside South Africa, is set to significantly expand off-grid solar power access, targeting an estimated 1.4 million low-income households and small businesses across Kenya. This financial innovation represents a pivotal moment for renewable energy deployment and economic empowerment within the region.
Catalyzing Clean Energy Access and Financial Inclusion
This landmark transaction underscores a crucial step forward in scaling affordable, clean energy solutions across the African continent. The deal leverages the highly successful pay-as-you-go (PAYG) model, which has already enabled millions to transition from polluting and expensive traditional energy sources like kerosene and diesel to sustainable solar power. The financial structure of this securitisation is robust: it marks Sun King’s second and largest Kenyan Shilling-denominated securitisation. Citi orchestrated the arrangement, with Stanbic Bank Kenya serving as the placement agent. The deal received substantial backing from five commercial banks – Absa, Citi, Co-operative Bank, KCB, and Stanbic – alongside three influential development finance institutions: British International Investment, FMO (Dutch), and Norfund (Norwegian). This diverse consortium of financial partners highlights strong confidence in Sun King’s model and the burgeoning African off-grid solar market.
The record-breaking funding secured by Sun King is poised to dramatically accelerate the adoption of clean energy in Kenya. By providing accessible and affordable solar solutions through a flexible payment model, the company is not only reducing energy poverty but also fostering economic growth and improving the quality of life for millions. This deal sets a new precedent for attracting significant local and international investment into Africa’s renewable energy sector, demonstrating the potential for innovative financial instruments to drive sustainable development across the continent.
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