Oral East Africa>Will SunKing revive branding wars in rural towns At the hut of the story

Written by Oral East Africa

Rural towns rarely get new branding beyond Colgate, coca-cola and Safaricom, however, recently pay-asyou-go solar lighting is claiming the few high-rise building in pursuit of visibility.

The re-emergence of Sun King under a new owner with a war chest of KES 17.9 billion ($130 million) to promote financial innovations that channel funding towards environmentally friendly projects, promises to excite this market.

Absa Bank which has sunk Kes2 billion into the syndicated finance structure said a Special Purpose Vehicle (SunKing Financing Ltd) has been set up to acquire eligible receivables from SunKing Kenya.

A building branded SunKing at Katito town.

Its financing in the deal is part of the Kes60 billion facilities issued by the Pan African lender as part of its sustainable finance in 2023, highlighting the Bank’s ongoing commitment to driving sustainable development.

Sustainability report

Absa in it’s Sustainability Report for the financial year ended December 31, 2023, disclosed that it advanced Kes22.3 billion as climate and sustainability-linked finance and Kes36.9 billion in inclusive finance. The report is themed, ‘Banking on a Better, Sustainable Future.’

“Absa Bank Kenya, as one of the investors, provides funding to a Special Purpose Vehicle (SunkingFinancing Ltd) to acquire eligible receivables from Sun King Kenya. This facility will enable Kenyan households and companies to transition to clean, reliable and environmentally friendly energy sources,” Absa Bank Kenya PLC Managing Director & CEO, Abdi Mohamed said.

Branding for pay as you go solution Solar Panda at Katito town.

A large section of rural Kenya is still not connected to the electricity grid with approximately 30 percent of Kenyans currently living without access to electricity. This has meant that households are spending a significant portion of their income on polluting fuels and technologies for lighting and power.

Off-grid

Our recent drive through South Nyanza where despite Geothermal flowing right down beneath Sondu most of rural western lies in the dark. The trafficking grid crisscrossed these vast areas losing idle power over homes that relied on the ancient art of igniting fires and market women huddled over cyclops eyes of pay-go-solar solutions.

Solar energy presents a viable solution, offering clean and reliable energy while providing long-term cost savings for homes and businesses.

However, the high upfront equipment cost often acts as a barrier preventing many Kenyan consumers from adopting solar energy.

Through our deliberate efforts, we are committed to promoting and driving sustainable financing for our customers, aligning with our overall sustainability agenda. The innovative pay-asyou-go service eliminates the upfront cost barrier, making solar energy systems accessible to a wider consumer base.

This securitisation approach plays a crucial role in unlocking the substantial capital required to fund solar energy initiatives at the scale necessary to address the climate crisis. These pioneering financial mechanisms effectively transform global challenges related to energy access, social development, and climate action into compelling investment opportunities.