Off-Grid Solar Pay-As-You-Go (PAYG) Receivables Co-Financing
Why now
In July 2025, two Kenyan clean-energy startups (Sun King and d.light) captured 83% of Africa's $550M clean-energy raise, with Sun King closing a $156M Citi-structured securitisation and d.light expanding receivables financing by $300M — validating the asset-backed PAYG model at scale. Kenya recorded 220,000+ new off-grid solar connections in 2025, the highest annual increase in recent years, and county governments are actively expanding solar programs for clinics and schools, creating sustained pipeline demand.
What we checked
- Scored 82 of 100 by our analysis model, which ranks this list. Not an independent rating.
- 3 source reports read and listed below.
- We have people in this market who can open doors on this deal.
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What is driving it
- Kenya's 90% clean electricity grid and supportive Digital Superhighway policy de-risk solar infrastructure plays
- County-government mandates to electrify clinics, schools, and community centres drive B2B demand for PAYG kit suppliers
- EU-Kenya EPA and UAE CEPA open export corridors for Kenyan-assembled solar components, improving unit economics
What could go wrong
- Kenyan Shilling volatility erodes EUR-denominated returns if the 2024 KES appreciation reverses
- Concentration risk: the PAYG receivables market is dominated by d.light and Sun King, limiting negotiating power for smaller co-investors
Full analysis
Kenya is projecting 5.6% GDP growth in 2025, underpinned by agricultural recovery, a booming services sector, and accelerated digital transformation. The startup ecosystem has pivoted sharply from fintech toward clean-tech and agri-tech, with Kenya capturing 88% of East Africa's $725M total venture funding in 2024 and commanding 67% of the continent's climate-focused VC. President Ruto's National Infrastructure Fund targets KES 1.5 trillion (~$11B) to construct 10,000km of new tarmac roads via PPPs and capital markets, opening significant sub-contracting and logistics opportunities. On the trade front, Kenya signed a Comprehensive Economic Partnership Agreement with the UAE in January 2025 and continues to benefit from the EU-Kenya EPA's duty-free access, while pursuing a new US bilateral trade arrangement to replace the stalled STIP as AGOA approaches expiry. FDI inflows held steady at ~$1.5B in 2024, with the Kenya Investment Authority targeting a doubling of that figure in 2026 by spotlighting agriculture, manufacturing, and BPO. Risks include persistent corruption (ranked 121st on TI's 2024 CPI), fiscal consolidation pressure, currency volatility, and early-stage funding gaps for SMEs.
In July 2025, two Kenyan clean-energy startups (Sun King and d.light) captured 83% of Africa's $550M clean-energy raise, with Sun King closing a $156M Citi-structured securitisation and d.light expanding receivables financing by $300M — validating the asset-backed PAYG model at scale. Kenya recorded 220,000+ new off-grid solar connections in 2025, the highest annual increase in recent years, and county governments are actively expanding solar programs for clinics and schools, creating sustained pipeline demand.
Market drivers:
- Kenya's 90% clean electricity grid and supportive Digital Superhighway policy de-risk solar infrastructure plays
- County-government mandates to electrify clinics, schools, and community centres drive B2B demand for PAYG kit suppliers
- EU-Kenya EPA and UAE CEPA open export corridors for Kenyan-assembled solar components, improving unit economics
Risks:
- Kenyan Shilling volatility erodes EUR-denominated returns if the 2024 KES appreciation reverses
- Concentration risk: the PAYG receivables market is dominated by d.light and Sun King, limiting negotiating power for smaller co-investors
Sources
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