A USD 50 million (KSh 6.47 billion) green bond, launched by Standard Chartered and African Frontier Capital, aims to expand affordable solar energy access to off-grid households in Kenya. The initiative is expected to provide clean electricity to approximately 4.3 million people across the region.
Kenya is central to the green bond initiative, with d.light playing a key role in expanding clean energy access. Operating in the country since 2011, the company has established itself as one of East Africa’s leading providers of solar home systems, offering affordable energy solutions through its pay-as-you-go (PayGo) financing model.
Building on its experience in impact investing, African Frontier Capital previously structured the USD 110 million (Ksh 14.24 billion) Brighter Life Kenya 1 securitization for d.light. The financing marked a milestone for the off-grid solar industry, becoming the first transaction in the sector to fully repay its senior debt before the scheduled maturity.
The latest green bond builds on that success, reinforcing Kenya’s strategic importance in supporting d.light’s continued expansion and accelerating access to clean, affordable energy solutions across the country.
The investment comes at a pivotal time, with Kenya accounting for nearly 75% of East Africa’s solar home system sales. However, 62.7% of rural households still lack access to the national grid, underscoring the country’s goal of achieving universal electricity access by 2030.
d.light’s PayGo model enables households to purchase solar systems through affordable mobile money instalments. The approach has been particularly successful in rural areas where access to the national electricity grid remains limited.
Beyond expanding energy access, the transaction highlights the growing sophistication of financing options for clean energy companies in Kenya and across Africa. By pairing a green bond with an investment-grade financial guarantee, the deal attracted institutional investors from the UK and US, unlocking capital that has traditionally been difficult for Sub-Saharan African issuers to access.
The four-year green bond will be listed on the International Securities Market of the London Stock Exchange and received technical support from the Global Green Growth Institute and the UK Foreign, Commonwealth and Development Office’s MOBILIST programme. African Frontier Capital said the transaction demonstrates how global private capital can be mobilised to accelerate renewable energy investment across Africa.
Lasitha Perera, CEO of the Development Guarantee Group, described the deal as a key milestone in mobilising climate finance and advancing sustainable investment. Standard Chartered added that the green bond structure will support the expansion of distributed solar energy and improve access to clean electricity across Sub-Saharan Africa.