Sun King, the Kenyan-headquartered off-grid solar energy leader, has secured a landmark Kenyan‑Shilling‑denominated Ksh 20.1 billion (approximately US $156 million) securitisation facility to rapidly scale access to solar home systems and smartphones for underserved households and businesses across Kenya.
The deal, finalised in late July 2025, marks Sun King’s largest local-currency financing in the country and underscores the growing confidence of commercial banks and development finance institutions in Kenya’s renewable energy market.
This second securitisation transaction, arranged and structured by global lead arranger Citi, was backed by prominent Kenyan banks including Absa Bank Kenya, Standard Bank’s Stanbic BankKenya, KCB Bank, and The Co-operative Bank of Kenya in the senior tranche.
The mezzanine tranche saw support from development finance institutions such as BritishInternational Investment (BII), FMO, and Norfund.
The funds will directly support about 1.4 million low-income households and businesses, enabling them to acquire solar energy products through affordable pay‑as‑you‑go payments, starting at roughly US $0.19 (KES 25) per day via mobile money or cash.
Sun King’s business model enables energy-poor communities to access clean, safe, and cost-saving solar solutions that replace kerosene lamps and diesel generators.
To date, the company has issued over US $1.3 billion in solar loans, serving nearly 10 millionindividual customers across the continent, roughly 30% of Kenyan homes now use Sun King solar products.
Co‑founder Anish Thakkar described the transaction as a “major turning point for green energy finance in Africa,” highlighting how local banks are now backing pay‑as‑you‑go solar at scale and providing local currency capital to underserved markets.
He emphasised that converting future repayments into investable assets unlocks sustainable growth and aligns capital with Kenya’s universal energy access ambitions.
Kenyan banks’ involvement underscores the domestic financial sector’s evolution, signalling deeper integration of sustainable finance into commercial lending.
The deal aligns with Kenya’s Vision 2030 and broader Sustainable Energy for All objectives, as the nation pushes toward near‑universal access to clean electricity by the end of the decade.
This follows Sun King’s prior $130 million KSh‑denominated securitisation completed in 2023, also with Citi and Stanbic among partners. That transaction was focused on financing solar home systems and lantern distribution and served as the first-of-its-kind in Kenya’s local currency sustainable finance space.
The latest securitisation enhances Sun King’s capacity to stock inventory, extend credit to more customers, and penetrate underserved rural and peri‑urban communities.
As half of registered PAYG customers are women many accessing formal finance for the first time this expansion supports both gender inclusion and energy access goals.
With the successful closure of Ksh 20 billion in local currency financing, Sun King is well-positioned to disrupt traditional energy markets in Kenya.
The transaction showcases innovative financial structuring and sustainable development impact, and sets a precedent for future African financing deals in renewable energy.
Written By Ian Maleve
