BasiGo and NCBA Group Kenya have announced a new partnership that will make it easier for Kenya’s public transport operators to acquire new electric vehicles and add them to their fleets.
Under the partnership, BasiGo and NCBA will finance up to 1,000 electric vans for Kenya’s public service vehicle (PSV) market. This will give operators in the sector more financing options as electric mobility continues to gain attention in Kenya’s public transport industry.
The agreement combines BasiGo’s electric mobility business with NCBA’s experience in asset financing, creating an opportunity to support the growth of electric vehicles in public transportation.
One of the biggest challenges highlighted by the two companies is the high upfront cost of purchasing a new electric vehicle. Through the partnership, they have introduced financing options that could make it easier for PSV operators to make the switch to electric vehicles.
These include the expansion of BasiGo’s Pay-As-You-Drive model.
The model is designed to allow PSV operators to access electric vehicles without having to pay the entire cost of the vehicle upfront. Instead, operators make payments based on their vehicle usage.
The partnership will also provide financing options for operators who would prefer to purchase BasiGo electric vans directly for their fleets. This means operators who do not want a usage-based payment model can also explore conventional asset financing options.
Having different financing options could make the transition to electric mobility more accessible to public transport operators who may otherwise find the upfront cost of an electric vehicle difficult to manage.
NCBA has previously invested in the growth of electric mobility financing in Kenya. According to the bank, it has established a KES 2 billion e-mobility financing facility, with more than KES 800 million already invested in electric vehicle assets in Kenya.
The partnership with BasiGo will form part of NCBA’s wider push to expand electric mobility financing in the country.
According to NCBA, financing will play a key role in accelerating electric vehicle adoption by reducing the amount of upfront capital operators need when acquiring electric vehicles.
Financing is critical for electric vehicle adoption. Through leasing and asset finance, we lower upfront capital barriers so operators switch without straining business cash flows,
said Robert Marete, Deputy Director and Head of Department at NCBA Leasing LLP.
The BasiGo and NCBA partnership comes as Kenya’s electric mobility sector continues to develop, with financing becoming an increasingly important part of helping businesses and public transport operators move away from conventional vehicles.
For PSV operators, the availability of different financing models could determine how quickly electric vehicles become a larger part of Kenya’s public transport system.
