American solar home systems and lanterns supplier Fenix International that was set to partner with Equity Bank
has suspended investment plan for Kenya as it awaits clarity on the political front.
The move comes barely a week after it was taken over by French giant ENGIE.
The
Francisco-based start-up that sells home solar kits financed through
regular payments via mobile phone primarily in Uganda, has been piloting
a programme with Kenya’s Equity Bank in the Rift Valley with plans to
scale up by year end.
Fenix sales and marketing
director East Africa Chris Bagnall had earlier said an assessment of the
pilot would be concluded in August with potential scaling up. But in an
update, Mr Bagnall said any final investment decisions will now wait
until political uncertainty clears.
“Currently our
Kenyan expansion remains at assessment stage whilst we monitor the
economy in light of recent electoral developments,” Mr Bagnall said in
an interview.
Under
the pilot Kenyans wishing to buy the system — comprising four LED
lights and a radio at about Sh15,399 — got financing through Equitel via
a loan dubbed Ecomoto. The loan periods ran from two to 12 months.
Fenix
was last week wholly acquired by the French energy giant ENGIE to
expand in sub-Saharan Africa by providing power to millions of people
who have no access to electricity.
ENGIE Africa chief
executive Bruno Bensasson said the French firm will help Fenix to expand
in about 10 Sub-Saharan Africa countries, including Zambia, Kenya,
Ivory Coast, Senegal and Ethiopia. “Our ambition is to cover millions of
clients,” said Mr Bensasson.
Mr Bagnall said the deal whose financial worth was not disclosed would enable the firm to boost its regional presence.
“Operations
will remain as strong as ever including our expansion plans but Fenix
will now have access to ENGIE’s full resources, from capital to talent
to a wealth of energy experience in Africa,” he said.
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