The electric mobility market in Kenya is beginning to heat up and take off significantly. Any sector needs financing facilities to expand, and this will be a major facilitator for Kenya’s electric transportation market. We are currently observing some strong alliances between financial institutions and electric mobility start-ups, which is a significant boost for electric mobility in Kenya.
The most recent agreement in this area was just made public. A collaboration deal between Family Bank and BasiGo , Kenya’s fifth-largest bank, has been been struck to give participants in the public service vehicle market access to flexible financing choices. Customers will benefit from up to 90% financing and an extended loan repayment period of 48 months for the purchase of electric buses thanks to Family Bank’s partnership with BasiGo Ltd, an e-mobility startup and financing firm providing electric bus services to sub-Saharan Africa. The agreement will significantly aid efforts to cut greenhouse gas emissions and promote the creation of a sustainable public transportation system. By doing this, the long-term effects of climate change will be lessened.
“As we work to assist the climate agenda, this partnership is crucial and essential in light of our strategic goals to solve environmental and social concerns through sustainable financing. A feasible option for the market to help reduce carbon emissions is provided by sustainable developments like the rise of electric automobiles. According to Family Bank Chief Executive Officer Rebecca Mbithi, “Through this relationship, we will be able to provide funding for a 25-seater known as the “BYD K6 BUS” that requires far less maintenance than diesel-powered buses and emits no emissions.
In addition to transmitting no gases, electric buses provide better reliability, premium passenger experiences, quieter operation, lower operating costs, hassle-free and dependable service and maintenance, and an improved overall driving experience thanks to charging ports strategically placed throughout the vehicle. For the clients, the drivers, and the operators, this is a completely positive experience, she continued.
For Kshs, BasiGo’s K6 Electric Bus is available. 5,000,000 plus a Kshs. 1,000 subscription charge. 20 cents per kilometer, pay as you go (PAYD). By ensuring battery performance and handling all charging and maintenance for the bus throughout its lifespan through PAYD, BasiGo reduces the risks to PSV operators. Through the PAYD battery subscription, the battery will be leased to the PSV operator.
“Kenya is currently going through an electric vehicle transition. We’ve seen that the technology is viable in the long run as well as the short term, but allowing bus owners to obtain asset finance for an electric bus in the same way they’ve been buying diesel buses will be the game-changer that increases its adoption. Owners of PSVs must be able to afford electric buses. As they are a preferred banking partner for many PSV owners, the agreement we have inked with Family Bank today goes a long way toward achieving this, according to Jit Bhattacharya, CEO and Co-Founder of BasiGo. “We have made electric buses more economical and more convenient for owners to own and operate than a diesel bus,” BasiGo said of the sustained support for this technology.
Once charged, the buses will have a 250-kilometer driving range before needing another charge at BasiGo charging depots that will be placed in key locations along the matatu routes. This enables transportation companies to finish their day’s worth of work.
This cooperation is one of many banks that are attempting to finance PSV owners who want to buy environmentally friendly cars. It comes at a time when the Nairobi City County Government is attempting to issue a green bond to fund the construction of a mass transit system and supports the long-term objective of achieving the UN Sustainable Development Goals (SDGs) as a guide to help achieve the reduction of global net human-caused carbon dioxide emissions by about 45% by 2030.
For the previous six months, BasiGo had been operating a pilot with two buses. In those six months, the buses had:
Driven over 90,000 kilometers, safely transported over 112,000 passengers, avoided burning over 17,000 liters of fuel, and reduced 42 tonnes of CO2e by using Kenya’s 90% renewable electricity. These statistics apply to the two BYD K6 buses that are now a part of the trial.
BasiGo is currently expanding its business. 100 buses have already been ordered by BasiGo! Kenya is in for some exciting days.
BasiGo pictures
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