In partnership with Sun King, Absa Bank Kenya has committed to finance Kes2 billion in solar projects to increase off-grid solar energy adoption across Kenya.
The investment is part of a syndicated finance facility worth Kes17.9 billion, which involves several commercial banks and other partners to fund environmentally friendly projects.
Through the partnership, investors will securitise and fund customers’ future payments for solar equipment purchased on credit.
Absa Bank Kenya Managing Principal for Corporate and Investment Banking James Agin noted that the lender is making deliberate efforts to entrench and drive sustainable financing for our customers in line with its overall sustainability agenda.
“We are thus pleased to collaborate in this arrangement which comes with a significant positive impact through the provision of clean energy to households,” Agin said.
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Absa Bank Kenya will fund a Special Purpose Vehicle (Sunking Financing Ltd) to acquire the eligible receivables from Sun King Kenya.
The facility will help Kenyan households and companies to shift to clean, reliable, and environmentally friendly energy.
Approximately 30 per cent of Kenyans live without access to electricity, with many off-grid households devoting 5 to 10 per cent of their income to polluting fuels and technologies for light and power.
Solar energy offers clean and reliable energy and long-term cost savings for homes and businesses. Still, the upfront equipment cost still blocks many Kenyan consumers from transitioning to solar energy.
Sun King Co-Founder Anish Thakkar stated that their proven pay-as-you-go service dismantles the up-front cost barrier that blocks consumers from purchasing solar energy systems.
“This securitization is key to unlocking the extensive capital needed to fund solar energy initiatives at the scale the climate crisis requires.”
Sun King designs, distributes, installs and finances solar energy solutions for African and Asian households and businesses who cannot access, rely on or afford traditional electric grid connections.
