Mogo to Finance 10,000 Electric Boda Bodas in Kenya with Ksh 192M Investment

Mogo, a leading asset financing company in Kenya, is making progress in promoting electric mobility by committing over Ksh 192 million (approximately $1.3 million) to finance electric vehicles, primarily focusing on the boda boda (motorcycle taxi) sector.

The initiative is part of a larger strategy to boost the adoption of electric bikes and three-wheelers across the country.

Mogo is leveraging funding from the United States International Development Finance Corporation (DFC), which has provided a total of $30 million (about Ksh 3.9 billion) to support Kenya’s e-mobility projects.

The company plans to finance 10,000 electric bodabodas over the next two years, responding to growing demand for sustainable transport in urban areas.

Mogo’s CEO for Africa and Asia, Tomas Sudnius, highlighted that the investment seeks to reduce greenhouse gas emissions while economically empowering boda boda operators.

Transitioning from traditional fuel-powered motorcycles to electric alternatives allows operators to save on fuel and maintenance costs, potentially earning at least Ksh 300 more daily compared to petrol-powered counterparts.

Most electric boda bodas use a battery-swapping model, enabling riders to quickly exchange depleted batteries for fully charged ones.

This approach reduces downtime and improves operator efficiency, helping them maximize earnings. The financing Mogo provides ensures that many boda boda operators, often excluded from traditional banking services, can switch to electric vehicles.

The Kenyan government has set ambitious targets for electric vehicle adoption, aiming for 5% of all registered vehicles to be electric by 2025.

These goals align with Kenya’s broader climate objectives, which include reducing greenhouse gas emissions by 32% by 2030.

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The government also supports acquiring electric motorcycles, targeting 200,000 units by the end of 2024.

Mogo’s initiatives align with a growing trend in Kenya’s transport sector towards electrification to combat climate change and reduce reliance on fossil fuels.

U.S. Ambassador to Kenya Meg Whitman commended these investments during her visit to Mogo’s electric vehicle showroom in Nairobi, praising their role in creating high-quality jobs and modernizing transportation systems.

Despite the optimism surrounding Kenya’s electric mobility transition, challenges persist. Affordability is a barrier for many potential electric vehicle users.

Mogo is addressing this by offering lower interest rates and reduced down payments for electric bodabodas compared to traditional fuel-powered bikes.

These financial incentives are crucial for enabling more operators to transition to electric vehicles.

Over the past five years, Mogo has provided Ksh 20 billion in boda boda and motor vehicle loans, offering affordable financing solutions to over 120,000 Kenyans.

The company aims to further expand its e-mobility financing portfolio with DFC’s new funding, expected to accelerate growth in the sector.

Mogo’s investment in electric vehicle financing represents a crucial step toward advancing sustainable transport in Kenya.

By offering accessible financing options and supporting the shift to e-mobility, Mogo is helping create a cleaner environment while empowering local entrepreneurs in the motorcycle taxi industry.

As Kenya advances electrification and sustainability efforts, initiatives like Mogo’s will play a vital role in achieving these ambitious goals and driving economic growth in green mobility.