25% Match Funded
36 months to mature 5% interest

Sollatek Kenya Issue 3: 5% Bond

£60,100
Raised

34
Investors

49
Days to run

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invested £300 invested

For every £300 invested into this campaign Sollatek will be able to source and distribute a solar home system, which a Kenyan family can pay for in affordable instalments over 18 months

households 250 families

Your investment will help Sollatek to provide clean energy to 250 families in Kenya

Sollatek is 100% Kenyan owned and managed, and has been operational in East Africa for over 30 years. During this time the market for solar products has changed significantly and with their experience and local knowledge Sollatek is well positioned to help the estimated 29 million individuals in Kenya who are currently 'off-grid' gain access to clean, reliable energy. Over the last 7 years Sollatek has sold over 650,000 solar lanterns and solar home systems (SHS), and aims to sell a further 180,000 by 2018.

This project benefits from match funding from UK aid.  UK aid has provided an up-front match of £18,750, meaning that for every £3 invested into this project by the crowd an additional £1 will be invested through match funding.

About Sollatek

  • Sold more than 650,000 lanterns and home solar systems over the last 7 years
  • Providing approximately 3.8 million people with access to solar energy
  • Sole agent for Sollatek UK products and owner of the Sollatek franchise in East Africa
  • Products are sold through a network of 250 outlets in Kenya
  • Directly employs 44 staff across Kenya
  • Provides after-sales support from 8 service centres across East Africa
  • Operational since 1985 with head office in Mombasa, Kenya
  • Turnover of approximately £3 million in 2016
  • Key product information

    Investment target: £75,000

    Minimum investment: £50

    Maximum investment: No maximum

    Maturity: 36 months

    Expected interest rate: 5% per annum

    Interest payment frequency: 6 monthly

    Notional repayment: 6 monthly

    Financial instrument: Unsecured interest bearing bond

    Security: Unsecured

    Key risks

    This is a bond issued by a single company (rather than a savings product) and therefore it is recommended that you are careful with the amount you invest.

    You must read the investment memorandum (provided below) where a full statement of risks is presented.

    Documents

    What the project investment will enable

    Every £300 invested will allow Sollatek to make a solar home system available to a family in rural Kenya that would otherwise be out of their financial reach. These systems are typically repaid over an 18 to 24 month period after which the family owns the system outright and can continue to enjoy the benefits of the clean energy produced. The funds raised under this campaign will be used to purchase larger, UK-manufactured 30W and 40W solar home systems, which are PAYGO enabled and can be used for running applications such as TVs, computers, fans, radios as well as lights and phone charging. The systems purchased from this campaign come bundled with TV sets in addition to standard lamps and sockets.


    All solar home systems purchased and distributed by Sollatek go through rigorous in-house testing and are also subject to Kenyan Bureau of Standards (KEBS) import testing. Each system contains a patented “Smart Energy Management” system to ensure the system prioritises energy use, optimises for different weather conditions, and maximises battery life resulting in better performance of system and appliances. Sollatek have found that 10-15% of their clients also utilise the systems to run a business out of their homes. The ability to offer additional services such as mobile phone charging and television viewing facilities allow their businesses to attract more customers and potentially increase revenues.


    Sollatek aims to raise £75,000 of investment, enabling them to purchase, distribute & install 250 units to help 1,250 individuals in Kenya. The money raised will also be used for training of staff and allows Sollatek to offer a comprehensive warranty on all systems.

    Sollatek Electronics Kenya

    With money raised from this campaign Sollatek will be focusing their efforts on the “underserved” areas of Kenya, which includes the coastal counties of Lamu, Tana River, Kilifi, and Kwale. These areas are defined as "underserved" by the Kenyan Government based on their CRA (Commission Revenue Allocation) report.


    Sollatek prides itself on offering quality products at an affordable price and they offer free courier delivery on their products as well as a 2 year warranty (even without proof of purchase). From their 8 regional services centres across Kenya, Tanzania, Uganda and Burundi they can offer superior after sales care with most faults fixed within 72 hours.


    Social and environmental impact

    Solar home systems & lanterns have been shown to have a significant impact on customers' lives and the environment. To date, Sollatek has sold more than 650,000 systems & lanterns across East Africa, and has impacted the lives of around 3.8 million people.

    Social Impact

    Social Impact

    The installation of solar home systems to off grid families has significant impacts that can be divided into the following categories: lifestyle, flexibility, health and safety, and economic. The following improvements below are associated with installation of Sollatek's solar home systems and access to reliable, renewable energy in general:

    610%

    Increase in available hours of light per household, associated with Sollatek's 30-40W systems

    10-15%

    of Sollatek's customers utilise their system to operate a business from their home

    ~50%

    percentage of entrepreneurs participating in Sollatek's EEP project who are female, with top sales mostly attributable to them

    16%

    of individuals using a SHS for business purposes report that they are able to work for longer hours

    Environmental Impact

    Environmental impact

    Using industry-recognised SolarAid impact metrics, Sollatek has calculated the environmental impact of installing 250 solar home systems as follows:

    1,250

    Number of people who will enjoy clean energy access

    60%

    respondents to a Power Africa survey reported reduced energy spend and kerosene use as the most appreciated benefit of SHS

    1.1tonnes

    Annual total CO2 emissions offset per household

     

    Frequently Asked Questions