GuarantCo, a member of the Private Infrastructure Development Group (PIDG), and the Kenyan bank SBM Bank have granted financing of 1.6 billion Kenyan shillings (nearly 15 million USD) to Bboxx Kenya to invest in affordable solar home systems for 470,000 Kenyans. The transaction represents the largest single loan raised by Bboxx Kenya to date.
In a statement dated Tuesday, January 25, GuarantCo said it participated in the transaction with a partial credit guarantee of KES 1.2 billion (USD 11.25 million) of 75% on the loan facility.
Bboxx Kenya manufactures, distributes and finances decentralized solar systems in developing countries. The funds will allow it to buy new stocks over the next two years, including 89,600 solar home systems and essential appliances such as refrigerators and telephones, mostly for rural areas.
“We are delighted to partner with Bboxx and SBM Bank to make this solar home system transaction happen for the benefit of the people of Kenya. This is our sixth contract and our first off-grid solar project in Kenya. said Emily Bushby, COO/CFO of GuarantCo. According to the official, Guarantco will support the Kenyan government “in its ambition to develop its off-grid capacities and improve access to affordable and clean energy for the local population while involving the private sector and provide financing for development projects. ‘local currency infrastructure’.
It should be noted that Kenya’s electrification rate is estimated at around 70% with some disparity between urban (90%) and rural (60%) areas. In 2018, the Kenyan State developed a national strategy which aims to intensify off-grid electrification with the ambition of establishing two million new connections by 2022, in particular through solar home systems and mini -networks.
