NAIROBI, Kenya- Kenya’s electric vehicle (EV) sector is set to experience significant growth thanks to a $30 million loan package from the US International Development Finance Corporation (DFC).
This substantial funding aims to bolster the presence and capabilities of three key players in the industry: BasiGo, Roam Electric, and Mogo Auto Kenya.
These developments were announced during President Ruto’s recent trip to the United States, marking a pivotal moment for Kenya’s journey towards sustainable transportation.
DFC’s Strategic Investments
The DFC, the US Government’s development financing arm, is making strides to enhance various sectors within Kenya’s economy, including agriculture, health, energy, and infrastructure.
As part of its broader strategy, DFC is opening an office in Nairobi to facilitate these investments.
This move underscores the agency’s commitment to fostering development in the region.
BasiGo’s Electrifying Ambitions
BasiGo, known for leasing and selling electric buses to public transport operators, is set to receive $10 million.
These funds will be directed towards purchasing buses and batteries, essential components for expanding Kenya’s e-mobility infrastructure.
The company aims to deliver 1,000 locally assembled electric buses over the next three years, a plan that promises to create 300 green manufacturing jobs in Kenya.
BasiGo has already secured over 500 reservations from bus operators in Nairobi and an additional 100 from Kigali, Rwanda.
Roam Electric’s Expansion
Roam Electric, another beneficiary of the DFC’s initiative, also receives $10 million.
This funding will support the expansion of its production and assembly operations for electric motorbikes at its Nairobi facility.
Roam recently inaugurated an electric motorcycle showroom in Nairobi and introduced the Roam Air, an electric motorcycle with a range of up to 100 km and a removable battery for convenience.
Additionally, Roam’s electric buses, capable of carrying 90 passengers, feature fast-charging capabilities and a range of 360 km.
Roam has further strengthened its market position by securing $24 million in Series A funding and partnering with M-KOPA to offer electric motorcycles on credit, making them more accessible to potential buyers.
The company’s new 50,000 motorcycle production facility, Roam Park, highlights its commitment to scaling up production while maintaining carbon-neutral operations.
Mogo Auto’s Financing Solutions
Mogo Auto Kenya, specializing in affordable financing options for vehicles, has been granted $10 million.
This loan will enable Mogo to expand its offerings, providing affordable car loans, motorcycle taxi financing, and logbook loans.
These efforts are crucial in increasing access to sustainable transport solutions for a broader segment of the Kenyan population.
Broader Impacts and Future Prospects
The $30 million loan package is part of a more extensive $250 million financing initiative announced by the DFC, which includes investments in affordable student housing, digital connectivity, and renewable energy projects in Kenya.
The US Department of State has also pledged $100,000 in technical assistance to accelerate Kenya’s transition to zero-emission vehicles (ZEVs).
This support will focus on developing and implementing ZEV policies, capacity building, peer-to-peer learning initiatives, and workforce development programs.
In addition to these investments, the US and Kenya have committed to improving Nairobi’s transportation infrastructure with a $60 million grant aimed at enhancing mobility and promoting eco-friendly public transport.
This four-year project will prioritize safe options for pedestrians and sustainable transit solutions.
“With this week’s announcements, DFC is doubling down on its commitments to Kenya’s development, with investments into energy, e-mobility, and infrastructure. DFC is also expanding its on-the-ground presence by opening an office to help us better pursue opportunities across the region,” Scott Nathan, CEO of DFC, emphasized.
