Off-grid solar solutions provider d.light has partnered up with micro lender Musoni to enable low-income consumers in Kenya to access solar energy at affordable prices.
The deal will see Musoni Kenya absorb the upfront costs of d.light solar home systems then the customer services the loan over a certain period.
In a statement, Jacob Okoth, d.light’s Managing Director for Africa, said: “The priorities between Musoni and d.light are aligned. Also, the type of customers we are targeting are the same as those being targeted by Musoni. There is a lot we can both benefit from this partnership and our aim is to nurture it, and grow it, into a mutually beneficial relationship for both of us, and our customers.”
The d.light solar and Musoni partnership involves sharing of each organization’s client base to accord more people the opportunity of going up the economic and energy ladders.
More than 47 million households in Africa and Asia have no electricity and do not make enough money to afford connection to the grid. d.light is working around this challenge by collaborating with microfinance institutions (MFIs) to absorb initial costs for its low-income customers. d.lightalso has a similar arrangement in India where it has reached millions of customers through MFIs. East Africa presents a unique case considering how MFIs are leveraging mobile money to reach the rural unbanked.
d.light solar is a pioneer in solar portables and a market leader whose products have impacted more than 72 million lives globally, bringing it closer to its target of 100 million lives by 2018. The d.light-Musoni partnership adds to the growing number of MFI partnerships in Kenya.
Musoni, which targets customers who are traditionally considered “un- credit worthy”, “unattractive” or “high risk” has a loan approval turnaround time of less than 72 hours and, 24 hours for repeat customers.
Musoni CEO Stanley Munyao described the new partnership as an “opportunity to participate in green energy as part of the global movement for sustainable resource management.”
“Our clients now have access to clean and reliable sources of energy that improve their quality of life and save on costs going towards kerosene for lighting purposes. Our drive now is to ensure that majority of our clients’ households are lit using renewable energy, and our financial capacity is opened up to the larger d.light client base to provide our much needed financial services,” he added.