The Kenya Commercial Bank (KCB) and electric vehicles manufacturer BasiGo Ltd on Tuesday announced a partnership that will enable investors to get funding to invest in electric public service vehicles.
The partnership will enable KCB customers to enjoy up to 90% funding which can be repaid within a period of up to 36 months. The program is expected to spur interest in the reduction of greenhouse emissions and enhance their ability to respond to climate change through adaptation and mitigation measures.
“The key to getting electric buses on the road in Kenya is to make them affordable to PSV owners. The partnership we have signed today with KCB Bank is game-changing. It will allow bus owners to secure asset financing for an electric bus exactly in line with how they have been purchasing diesel buses.,” said Jit Bhattacharya, CEO and Co-Founder at BasiGo.
This is the first partnership the startup has entered with a local bank to enhance the quick uptake of electric PSVs in the country.
“With KCB’s pioneering support for this technology and BasiGo’s Pay-As-You-Drive financing, we have made electric buses more affordable and more convenient for owners to purchase and operate than a diesel bus,” added Bhattacharya,
BasiGo’ s electric buses are available to purchase on a blended Sale/Operating lease model. Under this model, the bus is available to purchase from Kshs. 5,000,000, with BasiGo retaining ownership of the battery within the bus. The battery is subsequently leased to the PSV operator via the Pay-As-You-Drive (PAYD) subscription.
Under the PAYD subscription model, bus owners will pay Ksh 20 per kilometre driven. BasiGo mitigates the risks to PSV operators by guaranteeing battery performance and providing all charging and maintenance for the bus throughout its life.
BasiGo recently concluded a pilot program rolled out in collaboration with Citi Hoppa and East Shuttle. The buses have been in operation in Nairobi since March 2022 and have recorded a combined 90,000 km and carried over 112,000 passengers so far.
“BasiGo has already received over 100 reservations for its K6 Electric bus and is set to deliver new buses in early 2023 to SACCO’s on the reservation list,” the company said in a statement.
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