NAIROBI, Kenya-d.light, a leading provider of household products and affordable financing for low-income households, has announced a significant milestone: securing a new $176 million (Sh22.9 billion) facility to expand its operations in Kenya, Tanzania, and Uganda.
This financing, provided by African Frontier Capital, will enhance d.light’s PayGo consumer finance offering, making solar-powered products more accessible to households without electricity.
The PayGo model, a pay-as-you-go system, has revolutionized the energy sector in East Africa.
It allows low-income rural households to rent and eventually own home solar power systems, providing a sustainable and affordable solution to energy access.
This new multi-currency facility aims to bring renewable energy to approximately six million people across Kenya, Tanzania, and Uganda over the next three years.
With the addition of this latest funding, d.light has now secured a total of $718 million (Sh93.5 billion) across five financing facilities since 2020.
This financial boost marks the first time d.light has achieved receivables-based financing in all its PayGo markets, ensuring a consistent cash flow and eliminating the need for further external equity fundraising.
“Facilities like this enable our pioneering PayGo consumer financing model, allowing us to offer solar home systems and high-efficiency appliances to those who need them most, in an affordable and sustainable way,” Nedjip Tozun, CEO of d.light, said highlighting the significance of this achievement.
d.light has been a pivotal player in sub-Saharan Africa’s off-grid solar sector since 2010, with active operations in Kenya, Uganda, and Tanzania.
Earlier this year, d.light’s Brighter Life Kenya 1 Limited facility made headlines by repaying its senior debt ahead of schedule, a first in the off-grid solar sector.
Eric De Moudt, CEO of African Frontier Capital, praised the milestone, emphasizing the role of financial innovation in advancing clean energy and financial inclusion.
“This milestone is a testament to how data-driven financial innovation can play an important role in bringing financial inclusion to the world’s most vulnerable communities,” said De Moudt.
Over the past few years, d.light has leveraged securitized finance to support its solar-powered household products across sub-Saharan Africa.
This new facility adds to four previous ones established since 2020, including two in Kenya and one each in Nigeria and Tanzania.
The combined purchasing value of these facilities, plus the new funding, totals an impressive $718 million (Sh93.5 billion).
In February, d.light announced that its $110 million (Sh14.2 billion) securitization facility, Brighter Life Kenya 1 Limited (BLK1), successfully repaid its entire senior debt ahead of schedule using internally generated cash flows.
This achievement marked a historic first in the off-grid solar sector, underscoring d.light’s commitment to financial sustainability and innovation.
