NAIROBI, Kenya, June 6 – Absa Bank Kenya Plc will lend Sh2 billion to solar power projects with the aim of increasing the uptake of off-grid solar energy across Kenya.
The investment is part of a syndicated financing scheme worth Sh17.9 billion ($130 million) involving several commercial banks and other partners to finance green projects.
As part of the agreement, the customer's future payments for solar power equipment purchased on credit will be securitized and financed by investors.
James Agin, Managing Principal, Corporate and Investment Banking at Absa Bank Kenya, said: “As an organization, we are committed to entrenching sustainable lending to our clients in line with our overall sustainability agenda. “We are making a deliberate effort to promote this.”
“We are therefore pleased to collaborate on this deal, which will have a significant positive impact through the supply of clean energy to households,” Agin said.
“Our close and continuous cooperation with leading financial institutions ensures the smooth execution of transactions.”
Absa Bank Kenya, as one of the investors, will provide funding to a special purpose vehicle (Sunking Financing Ltd) to acquire eligible debt from Sun King Kenya.
The facility will help Kenyan households and businesses transition to clean, reliable and environmentally friendly energy.
About 30 percent of Kenyans live without access to electricity, and many unelectrified households spend 5 to 10 percent of their income on polluting fuels and technology for light and power.
Solar energy not only provides clean, reliable energy for homes and businesses, but also provides long-term cost savings, but the initial equipment costs deter many Kenyan consumers from making the switch to solar energy. It's hindering me.
“Our proven pay-as-you-go service removes the upfront cost barrier that prevents consumers from purchasing solar energy systems,” said Anish Thakkar, co-founder of Sun King. Masu.
“This securitization is key to securing the significant capital needed to fund solar energy efforts on the scale the climate crisis requires.”
Sun King designs, distributes, installs and finances solar energy solutions for households and businesses in Africa and Asia who cannot access, rely on, or afford traditional grid connections.
Sun King customers can purchase products using the company's technology-powered pay-as-you-go “Easy Buy” financing service. This service splits your payments into regular and affordable installments.
These payments can be made with mobile money or cash for just $0.15 a day.
