A shift is underway in how green energy projects are being financed in Africa, with Sun King’s latest KSh 20.2 billion ($156 million) securitised loan shining a spotlight on mobile money as a powerful financial instrument for renewable energy inclusion.
Rather than relying on traditional collateral, Sun King has bundled mobile money repayments from its pay-as-you-go solar customers, collected daily to secure the massive facility.
This innovative model places mobile money at the center of sustainable finance, with local banking giants such as Absa, Stanbic Kenya, KCB, and Co-operative Bank prioritised as senior lenders. International development financiers including BII, FMO, and Norfund also backed the arrangement through a mezzanine tranche.
This landmark transaction follows a $130 million securitisation by the off-grid solar giant last year, pushing its total structured finance portfolio to nearly $300 million. The company aims to use the funds to extend affordable solar access to 1.4 million more homes and micro-enterprises across Kenya.
Beyond the financing, Sun King’s model, allowing solar kit access for as little as KSh 25 per day, demonstrates a scalable way to link mobile technology, renewable energy, and financial inclusion. To date, the firm has deployed over $1.3 billion in solar loans to reach nearly 10 million Africans.
The growing reliance on local currency funding not only minimizes foreign exchange risk but also shows that solar projects can attract profit-driven capital while serving low-income communities. Experts say this may mark a pivotal moment for mainstream lenders seeking to finance projects aligned with Sustainable Development Goal 7: universal access to affordable and clean energy.
