Kenya off-grid solar sales up 61% in two years, but three firms take 70% of the funding

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Kenya’s off-grid solar sales rose 61% between 2023 and 2025, to about 2.4 million units a year, keeping it the largest market among those tracked in the Off-Grid Solar Market Trends Report 2026, published by the World Bank’s ESMAP, GOGLA and Dalberg, The Kenyan Wall Street reported on October 29, 2026. But financing is concentrating in a handful of large companies, leaving smaller local firms short of capital.

Off-grid solar in Kenya and the region: key numbers

Why sales are growing

Pay-as-you-go (PAYG) plans let households and small businesses pay in instalments instead of the full price upfront. Products have moved beyond lights to solar home systems that run TVs and appliances, plus equipment for farmers and shops, such as solar water pumps. East Africa’s early donor support, distribution networks and mature regulation have helped. If you buy on instalments, know your rights: see our guides on hire purchase vs buy now pay later and Lipa Mdogo Mdogo CRB listing rules.

Funding goes to fewer, bigger players

Three companies, Sun King, d.light and Ignite Energy Access, captured about 70% of corporate financing in 2024 and 2025, raising US$437 million between them. The number of market leaders receiving investment fell from six in 2020 to three by 2025. East Africa took 67% of corporate financing in 2022–23 (US$434 million), but West Africa overtook it in 2025 for the first time, though the report says this partly reflects the timing of one large 2024 deal.

What it means for smaller Kenyan solar firms

Smaller and locally owned firms struggle to pre-finance customers and get bank loans, which limits how far they can grow. Options include:

• specialising in productive-use solar (irrigation, cooling, milling) where big brands are thinner;
• partnering with saccos or microfinance banks for customer financing;
• pursuing results-based grants and donor programmes, which the World Bank says remain key to crowding in private money.

The investment gap

The World Bank says off-grid solar is the least-cost option for at least 398 million people without power. Reaching its 2030 potential needs about US$11.4 billion, including US$1.3 billion a year in grants and subsidies and US$1.6 billion a year in equity, debt and receivables financing.

“Financing has not kept pace with what off-grid solar is being asked to do,” said Sarah Malm, executive director of GOGLA.

FAQ

How many off-grid solar products are sold in Kenya each year?

About 2.4 million units in 2025, according to the Off-Grid Solar Market Trends Report 2026.

Which companies dominate off-grid solar funding?

Sun King, d.light and Ignite Energy Access took about 70% of corporate financing in 2024–25.

Updated October 31, 2026.