Bboxx, a next generation utility company, has secured a US$15mn loan from SBM Bank Kenya to provide access to clean, reliable, and affordable energy to nearly half a million Kenyans through off-grid solar home systems (SHS)
GuarantCo, a part of the Private Infrastructure Development Group (PIDG), has provided a US$11.25mn partial guarantee against the loan facility.
Kenya’s electrification rate is estimated at around 70% though there is some disparity between urban (90%) and rural areas (60%). The funds provided to Bboxx Kenya will be used to purchase new inventory over the next two years including 89,600 solar home systems and essential appliances such as fridges and phones. These are expected to serve 470,000 people, 80% of whom are based in rural areas.
The transaction will also enable the creation of a further hundred new long-term jobs with efforts to provide opportunities for women in the process.
Mansoor Hamayun, CEO of Bboxx, commented, “This transaction shows what is possible to achieve when forging partnerships between different stakeholders to mobilise private capital to the energy sector. This transaction is the largest single loan raised by Bboxx Kenya, it will enable us to unlock potential and transform even more lives for the better through energy access in Kenya. It is a positive step in the right direction in securing more funds to help tackle the global energy access gap and make progress towards meeting UN Sustainable Development Goal 7 – energy for all.”
Emily Bushby, COO/CFO of GuarantCo, remarked, “This is our sixth deal and first off-grid solar project in Kenya. We are proud to support the Kenyan government in its ambition to grow its off-grid capabilities and improve affordable, clean energy access to local people while involving the private sector and provide local currency infrastructure project financing which is at the core of GuarantCo’s business.”
Jotham Mutoka, deputy chief executive officer of SBM Bank Kenya, added, “SBM Bank is elated to spur the growth of the energy sector in Kenya through partnerships with like-minded entities such as Bboxx and GuarantCo. Through this transaction, I envision school children being able to access electricity at home to complete their school work when in the past they were in darkness, this will uplift the social-economic status of the entire home leading to a smarter tomorrow.”
