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
Your investment will help Sollatek to provide clean energy to 217 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 have sold a further 180,000 by 2018.
This project benefits from £19,500 match funding thanks to UK aid. This means that for every £10 invested into this project by the crowd, an additional £3 will be invested by UK Aid. The project also benefits from first-loss cover: this means that, in the unlikely event that Sollatek Electronics (Kenya) Ltd is unable to make all of its bond repayments, repayment of the crowd would be prioritised ahead of UK aid - providing an additional level of protection for the investor.
Key product information
Issuer: Sollatek Electronics (Kenya) Ltd
Issueing Country: Kenya
Investment target: £65,000
Minimum investment: £50
Maximum investment: No maximum
Maturity: 36 months
Expected interest rate: 5% per annum
Witholding tax rate: 15% (applicable to UK residents who do not invest within an IF ISA)
Interest payment frequency: 6 monthly
Notional repayment: 6 monthly
Financial instrument: Unsecured interest bearing bond
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.
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 £65,000 of investment, enabling them to purchase, distribute & install 217 units to help 1,085 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.
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:
Increase in available hours of light per household, associated with Sollatek's 30-40W systems
of Sollatek's customers utilise their system to operate a business from their home
percentage of entrepreneurs participating in Sollatek's EEP project who are female, with top sales mostly attributable to them
of individuals using a SHS for business purposes report that they are able to work for longer hours
Using industry-recognised SolarAid impact metrics, Sollatek has calculated the environmental impact of installing 217 solar home systems as follows:
Number of people who will enjoy clean energy access
respondents to a Power Africa survey reported reduced energy spend and kerosene use as the most appreciated benefit of SHS
Annual total CO2 emissions offset per household