NAIROBI, Kenya — Kenyan tuk-tuk operators will be able to access financing for electric three-wheelers under a new expansion by M-KOPA, as the company seeks to build on growing demand for electric motorcycles.
The financing firm said it is extending its pay-as-you-go model to electric tuk-tuks, allowing operators to spread the cost of acquiring the vehicles over time rather than paying the full purchase price upfront.
M-KOPA said the model is designed to make electric mobility more accessible to commercial transport operators while reducing the initial financial barrier to switching from conventional petrol-powered vehicles.
The expansion follows the company’s financing of 10,000 electric motorcycles, a milestone it says reflects increasing interest among riders seeking to lower operating costs and improve earnings.
“Reaching 10,000 financed electric motorbikes reflects growing demand from riders looking to lower operating costs and improve their earnings,” said Brian Njao, General Manager, Mobility at M-KOPA.
“We are now applying the same financing approach to electric tuk-tuks, helping operators access cleaner, lower-cost vehicles without the burden of a large upfront payment.”
M-KOPA cites lower operating costs
According to M-KOPA, customers using its electric mobility financing programme save an average of Sh530 per day through lower energy and maintenance expenses.
The company also cited access to battery-swapping infrastructure as another factor helping reduce the operating burden for electric vehicle users.
For commercial operators, lower daily running costs can be particularly important because fuel and maintenance expenses directly affect earnings.
M-KOPA’s financing model allows customers to make repayments over time, potentially enabling operators to acquire electric vehicles without having to raise the full purchase price at once.
The company said customers also receive additional services under its mobility programme, including flexible repayments, insurance, GPS tracking, security features and warranty protection.
Electric motorcycles pave way for tuk-tuks
M-KOPA currently finances electric motorcycles manufactured by Ampersand, Roam and Spiro, according to the company.
It has also partnered with ride-hailing platform Bolt to provide financing and incentives to riders.
The company’s decision to extend financing to tuk-tuks expands its presence in another important segment of Kenya’s commercial passenger transport market.
Three-wheelers are widely used for short-distance passenger and goods transportation, particularly in urban centres and smaller towns.
For operators, the transition to electric vehicles could provide an alternative to petrol-powered tuk-tuks while potentially reducing daily energy and maintenance costs.
Kenya pushes clean mobility
The expansion comes as Kenya seeks to accelerate the adoption of electric transport as part of its wider clean-mobility agenda.
The passenger transport sector has been identified as a contributor to air pollution in Nairobi and other urban centres, increasing pressure for cleaner alternatives to conventional internal-combustion vehicles.
Kenya has adopted a National Electric Mobility Policy that provides a framework for investment and private-sector participation in electric transport.
The policy includes tax incentives intended to encourage the uptake and development of electric mobility technologies.
These include zero-rated VAT on electric buses, bicycles, motorcycles and lithium-ion batteries, as well as zero excise duty on electric bicycles, motorcycles and lithium-ion batteries.
Such incentives are intended to reduce the cost of electric mobility products and encourage both consumers and businesses to invest in the sector.
Financing remains key to electric vehicle adoption
Despite growing interest in electric mobility, the upfront cost of electric vehicles remains an important consideration for many commercial operators.
M-KOPA’s pay-as-you-go model seeks to address that challenge by converting the initial purchase cost into manageable payments over time.
The approach is particularly relevant to motorcycle and tuk-tuk operators whose vehicles are income-generating assets. Financing can allow operators to begin earning with the vehicle while making repayments from their daily or weekly income.
M-KOPA’s expansion into electric tuk-tuks therefore represents a broader shift from financing individual electric motorcycles towards supporting electrification across Kenya’s commercial transport sector.
The company says the combination of flexible financing, lower running costs, battery-swapping infrastructure and additional services can make electric vehicles more commercially viable for operators.
Electric tuk-tuks could reshape urban transport
The move also highlights the potential role of electric three-wheelers in Kenya’s transition towards cleaner urban transport.
Tuk-tuks are a common feature of the country’s passenger transport system, particularly for short-distance journeys where their relatively small size allows them to operate on routes that may not be efficiently served by larger public service vehicles.
Greater adoption of electric three-wheelers could reduce reliance on petrol while creating demand for supporting infrastructure such as charging and battery-swapping networks.
For operators, however, the commercial case will ultimately depend on factors including vehicle prices, financing terms, battery availability, charging or swapping access, maintenance costs and the reliability of the technology.
M-KOPA’s latest move seeks to address at least one of those barriers by reducing the upfront cost of acquiring an electric vehicle.
M-KOPA targets next phase of electric mobility
The financing of 10,000 electric motorcycles gives M-KOPA an established base from which to expand into the tuk-tuk market.
The company is now positioning its financing model as a way of supporting a wider transition towards electric commercial mobility in Kenya.
