Kenyan solar energy firm Sun King has unveiled a KSh19.5 billion ($150 million) expansion into Ethiopia, marking one of its largest investments in Africa as it targets millions without reliable electricity.
The company has signed a memorandum of understanding with the Ethiopian Investment Commission to accelerate its entry into the market, with operations expected to begin almost immediately.
Under the agreement, Sun King plans to deploy solar home systems and inverter solutions to more than two million households and businesses by 2030. The rollout will focus on rural and peri-urban areas where access to the national grid remains limited.
“We are moving with urgency to build our team, establish our network and bring affordable solar solutions to millions,” said chief operating officer Kota Kojima.
Ethiopia continues to face a significant electricity access gap despite generating nearly all its grid power from renewable sources. Tens of millions of people still lack consistent electricity, creating demand for decentralized solar solutions.
Sun King will rely on its pay-as-you-go financing model, allowing customers to access solar products through manageable instalments. The company plans to tailor its approach to local conditions by building a network of agents and technicians to support installation and maintenance.
The Ethiopian government, through the investment commission, has committed to providing regulatory support, including business licensing and investor facilitation. The move reflects growing efforts to attract foreign investment as part of broader economic reforms.
The expansion also aligns with continental initiatives aimed at increasing electricity access, including efforts to connect millions of Africans to power by 2030.
Sun King’s entry into Ethiopia adds to its footprint in more than a dozen African markets. The company has expanded rapidly, growing monthly solar kit sales from about 10,000 units in 2017 to over 330,000 units.
To support its growth, the firm has secured new funding, including $40 million in equity investment from UK-based Lightrock. It has also raised more than KSh20 billion through a securitisation deal backed by future customer repayments.
In Kenya, Sun King has diversified into solar-powered consumer electronics such as smartphones and televisions, increasing competition in the pay-as-you-go financing segment.
The Ethiopia investment highlights a strategic focus on large, underserved markets where grid expansion alone may not meet rising energy demand. Distributed solar solutions are increasingly seen as critical to closing Africa’s electricity gap.
