Under the terms of the partnership Musoni Kenya will absorb the upfront cost of d.light’s solar home system with customers servicing the loan over a fixed period. Source: d.light
Off-grid solar product distributor d.light has partnered with cloud-based microfinance institution Musoni to expand access to solar for low-income consumers in Kenya.
In partnering with microfinance institutions such as Musoni, d.light aims to absorb the initial upfront costs of its PV systems, widening access to low-income customers.
Under the terms of the partnership Musoni Kenya will absorb the upfront cost of d.light’s solar home system (which features a solar panel, mobile phone charger, solar lights, light switches, a torch and an FM radio) with customers servicing the loan over a fixed period.
D.light’s managing director for Africa, Jacob Okoth, said that the partnership made perfect sense for the two companies, as they target the same customer segment. Musoni works to expand financial outreach in rural areas and d.light’s mission is to continue to work towards rural electrification.
“The priorities between Musoni and d.light are aligned,” he said. “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 two firms will share a client base to expose more customers to off-grid solar solutions.
Kenya, and East Africa at large, are territories really plugged into leveraging mobile money solutions to reach the rural unbanked. By processing loans, savings and repayments over mobile money transfer systems, microfinance institutions (MFIs) such as Musoni can improve their efficiency, reduce the errors and wasted time associated with manual cash handling, and lower the likelihood of fraud.
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 [the] 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.
D.light recently celebrating surpassing solar home system sales of 120,000 within just six months.