On Wednesday, November 21, 2018, data from the Global Off-Grid Lighting Association (GOGLA) and Lighting Global showed that Kenya had become the leading market in sub-Saharan Africa for off-grid solar products, driven by strong demand for low-cost kits in both cash and credit sales.
Kenyans bought solar kits worth Sh4 billion in the first six months of 2018. Of that amount, 300,557 kits, mainly lanterns, were paid for in cash at a value of Sh500 million, while the rest, valued at Sh3.5 billion, were ordered on credit through companies such as M-Kopa.
The report said Kenya accounted for 10.3 per cent of solar devices purchased in cash globally and 30.1 per cent of those bought on credit. It also noted that the off-grid sector in Kenya was still expanding into new parts of the country, with fresh markets posting strong growth.
M-Kopa Solar has used the pay-as-you-go model, popularised by mobile money transfer services, to let rural households spread the cost of solar energy products over time. The company’s standard package includes a solar panel, two low-energy LED bulbs, a rechargeable torch and a rechargeable radio.
Among the 46 countries covered in the survey, Kenya ranked first in credit-based uptake of solar devices but came second to India in cash purchases. India ordered 1.3 million solar products worth Sh3.7 billion, accounting for 44 per cent of global cash sales, but it recorded only 39,253 units, or 5.41 per cent, of global credit sales through pay-as-you-go platforms.
Across the world, 3.7 million off-grid solar products were sold in the first half of 2018, a four per cent rise from the same period in 2017.
