Kenyan public transport operators will be able to acquire electric vehicles through financing covering up to 90 per cent of the asset value under a new partnership between NCBA Group and electric mobility company BasiGo.
The deal is expected to support the financing and deployment of 1,000 electric vehicles, giving PSV SACCOs and established transport operators an alternative to paying the full cost of an electric vehicle upfront.
Under the arrangement announced on Wednesday, August 26, established PSV SACCOs and PSV companies can access financing of up to 90 per cent of an electric vehicle's value, repayable over a period of up to 60 months.
Individual SACCO members will be eligible for financing of up to 80 per cent, with repayment spread over up to 48 months. Both financing options will attract a discounted processing fee of 1.5 per cent.
The partnership introduces leasing as an alternative to conventional asset financing, potentially lowering the initial capital required by operators seeking to transition from petrol and diesel vehicles to electric fleets.
BasiGo will also deploy its Pay-As-You-Drive model alongside NCBA's financing options, allowing operators to access electric vehicles through different payment structures.
NCBA and BasiGo said the financing will target PSV SACCOs, established operators and individuals, while also supporting institutions such as schools and hospitals seeking electric vans.
Lennox Mugambi, Group Director, Asset Finance and Business Solutions at NCBA Group, said financing was critical to making electric mobility commercially viable.
“The transition to electric mobility is not simply about putting more electric vehicles on the road; it is about creating the financing and infrastructure needed to make them commercially viable at scale," Mugambi remarked.
He added that the partnership would help connect capital with electric mobility solutions and make sustainable vehicles more accessible to operators.
For PSV operators, the financing comes as fuel remains one of the major operating costs in the transport sector.
The electric vehicles could also reduce operators' exposure to fuel and maintenance costs, although the actual savings will depend on factors including charging costs, vehicle utilisation and financing repayments.
BasiGo CEO and Co-founder Jit Bhattacharya identified access to capital as one of the biggest obstacles to electric vehicle adoption across Africa, saying “The most critical challenge in scaling electric vehicles in Africa is financing.”
He noted that the partnership would give Kenyan PSV operators multiple options for adding electric vehicles to their fleets.
“Through this partnership, Kenyan PSV operators now have multiple financing options, from asset finance to leasing, to add a BasiGo electric vehicle to their fleet," he continued.
NCBA said the partnership forms part of its wider e-mobility financing strategy. The bank has established a Ksh2 billion e-mobility financing facility, through which it says it has so far invested more than Ksh800 million in sustainable mobility assets.
The latest deal therefore comes as Kenya's transport sector gradually shifts towards electric mobility, with financing remaining one of the key barriers to wider adoption.
The partnership is designed to move that barrier from the upfront purchase price to more manageable financing and leasing arrangements.
However, the announcement does not disclose the purchase price of the vehicles, expected monthly repayments, charging costs or projected savings for individual PSV operators.
These figures will ultimately determine whether the financing options provide a commercially viable alternative to conventional petrol and diesel vehicles for ordinary matatu operators.
