Kenyan off-grid solar energy company Sun King has closed a landmark $156 million securitization deal to accelerate access to affordable solar energy across the country, marking one of Sub-Saharan Africa’s largest renewable energy financing transactions outside South Africa.
Founded in 2007, Sun King is the world’s leading off-grid solar provider, delivering cutting-edge product design, flexible financing, and a grassroots distribution model to supply energy to the 1.8 billion people across Africa and Asia who lack reliable electricity.
The company’s pay-as-you-go solar model enables households to access clean energy products by making small daily payments starting from as little as $0.19 (KES 25) via mobile money. To date, Sun King has issued over $1.3 billion in solar loans to nearly 10 million customers across Africa, driving widespread adoption of clean energy while reducing reliance on kerosene and diesel.
Largest Securitization of Its Kind in Kenya
The new KES-denominated securitization, arranged and structured by Citi with Stanbic Bank Kenya Ltd acting as placement agent, will provide electricity to an estimated 1.4 million low-income households and small businesses, many of which will be connecting to power for the first time.
The transaction is backed by five international and local commercial banks alongside three development finance institutions. It also builds on Sun King’s $130 million securitization in 2023, cementing the company’s role as a pioneer in green energy finance in Africa.
“This deal signals a major turning point for off-grid solar financing in Africa,” said Anish Thakkar, co-founder of Sun King. “It proves that African commercial banks believe in the pay-as-you-go solar model and are willing to back it with serious capital. Access to return-seeking, local currency debt is critical to scaling clean energy and achieving universal electricity access.”
Driving Local Capital for Renewable Energy
By securitizing future customer repayments for financed solar products, Sun King is converting its pay-as-you-go portfolio into investable assets, enabling it to raise long-term local currency debt to fuel expansion.
This latest deal underscores the growing appetite among African banks to support climate-resilient infrastructure while demonstrating the viability of innovative financing structures in emerging markets.
With this funding, Sun King aims to accelerate Kenya’s transition away from fossil fuels, expand clean energy adoption in underserved rural areas, and move closer to the goal of universal energy access across Africa.
