NAIROBI, Kenya – Mogo Kenya, a leading asset finance firm, has announced ambitious plans to finance over 10,000 electric bodabodas in the next two years.
This initiative is part of a broader effort to support Kenya’s fast-growing electric vehicle (EV) market, fueled by a $30 million funding injection from the United States International Development Finance Corporation (DFC).
Mogo Kenya, one of the three e-mobility pioneers in the country, has already allocated Ksh 1.3 billion from the funding to expand its electric mobility financing portfolio.
The company’s CEO for Africa and Asia, Tomas Sudnius, emphasized their commitment to making various EV brands accessible across Kenya, focusing on financing e-bikes and three-wheelers.
“In the past five years, we’ve invested over $50 million (Ksh 6.4 billion) in Kenya. Specifically, in the last two years, we’ve invested Ksh 140 million in electric bodabodas, financing 1,000 e-bikes,” said Sudnius.
Kenya is emerging as a leader in Africa’s electric vehicle market, with the registration of battery-operated cars and bikes increasing fivefold in the past year.
This rapid growth is largely driven by asset financing companies like Mogo, which are making it easier for Kenyans to transition to electric vehicles.
U.S. Ambassador to Kenya, Meg Whitman, recently visited Mogo’s EV showroom in Nairobi and praised Kenya’s strides towards decarbonizing its transport sector.
“These investments create high-quality jobs for Kenyans in a growing industry. They are part of a broader strategy to reduce reliance on fossil fuels, modernize the transport system, particularly in urban areas, and tackle the escalating climate crisis,” Whitman stated.
The environmental impact of this transition is significant. A study by Strathmore University reveals that a single petrol-powered bike emits 4.2 tonnes of carbon annually.
With approximately two million boda bodas operating in Kenya, the sector contributes at least 8.4 million tonnes of carbon emissions each year.
Mogo Kenya’s country manager, Domas Mineikis, highlighted that affordability remains a crucial barrier to widespread e-mobility adoption in Kenya and Sub-Saharan Africa.
“By investing in e-mobility, we aim to not only expand access and economically empower Kenya’s fast-growing MSME sector but also mitigate the impacts of global warming,” said Mineikis.
In the past five years, Mogo has provided Sh20 billion in boda boda and motor vehicle loans, offering affordable financial products to over 120,000 Kenyans.
The Kenyan government is also playing a crucial role, aiming to have at least 5% of all registered vehicles in Kenya be electric by 2025.
The government’s goal is to support the acquisition of 200,000 electric motorcycles by the end of 2024.
The United Nations Environment Programme (UNEP) estimates that a global shift to electric motorcycles could prevent 11 billion tons of carbon dioxide emissions by 2050, saving motorcycle owners a combined Ksh 5 trillion (USD 350 billion) in fuel and maintenance costs.
This initiative is part of a broader effort to support Kenya’s fast-growing electric vehicle (EV) market, fueled by a $30 million funding injection from the United States International Development Finance Corporation (DFC).
Mogo Kenya, one of the three e-mobility pioneers in the country, has already allocated Ksh 1.3 billion from the funding to expand its electric mobility financing portfolio.
The company’s CEO for Africa and Asia, Tomas Sudnius, emphasized their commitment to making various EV brands accessible across Kenya, focusing on financing e-bikes and three-wheelers.
“In the past five years, we’ve invested over $50 million (Ksh 6.4 billion) in Kenya. Specifically, in the last two years, we’ve invested Ksh 140 million in electric bodabodas, financing 1,000 e-bikes,” said Sudnius.
Kenya is emerging as a leader in Africa’s electric vehicle market, with the registration of battery-operated cars and bikes increasing fivefold in the past year.
This rapid growth is largely driven by asset financing companies like Mogo, which are making it easier for Kenyans to transition to electric vehicles.
U.S. Ambassador to Kenya, Meg Whitman, recently visited Mogo’s EV showroom in Nairobi and praised Kenya’s strides towards decarbonizing its transport sector.
“These investments create high-quality jobs for Kenyans in a growing industry. They are part of a broader strategy to reduce reliance on fossil fuels, modernize the transport system, particularly in urban areas, and tackle the escalating climate crisis,” Whitman stated.
The environmental impact of this transition is significant. A study by Strathmore University reveals that a single petrol-powered bike emits 4.2 tonnes of carbon annually.
With approximately two million boda bodas operating in Kenya, the sector contributes at least 8.4 million tonnes of carbon emissions each year.
Mogo Kenya’s country manager, Domas Mineikis, highlighted that affordability remains a crucial barrier to widespread e-mobility adoption in Kenya and Sub-Saharan Africa.
“By investing in e-mobility, we aim to not only expand access and economically empower Kenya’s fast-growing MSME sector but also mitigate the impacts of global warming,” said Mineikis.
In the past five years, Mogo has provided Sh20 billion in boda boda and motor vehicle loans, offering affordable financial products to over 120,000 Kenyans.
The Kenyan government is also playing a crucial role, aiming to have at least 5% of all registered vehicles in Kenya be electric by 2025.
The government’s goal is to support the acquisition of 200,000 electric motorcycles by the end of 2024.
The United Nations Environment Programme (UNEP) estimates that a global shift to electric motorcycles could prevent 11 billion tons of carbon dioxide emissions by 2050, saving motorcycle owners a combined Ksh 5 trillion (USD 350 billion) in fuel and maintenance costs.
