Financial services firm Mogo Kenya will provide financing for the acquisition of electric motorcycles for boda boda riders as well as other customers. The asset financier says that it offers lower interest rates to accelerate the uptake of clean mobility in the country.
“Electric bikes are rapidly becoming the future of rides globally, with many businesses moving to a greener and more economical solution. In financing both the businesses and customers alike, we’re aiming to create a sustainable business model for MSMEs in Kenya,” said Mogo Head of Boda Business, Mikhail Vydrin.
High fuel costs, soaring maintenance charges, and the environmentally damaging nature of petrol bikes are now pushing more riders into e-motorcycles, whose batteries are maintenance-free.
By using electric bikes, boda boda riders will be able to save Sh400 on fuel and daily services and up to Sh100,000 a year.
This will give them more disposable income to spend on their families, food, and education.
For example, the minimum down payment for the most popular 150-cc petrol bikes is Sh35,000, while that of an electric bike is Sh15,000.
With reduced interest rates for electric bikes, riders will pay only Sh380 daily versus Sh450 daily for a petrol bike, which is 15 percent cheaper.
In addition, riders do not have to go home to charge the battery. When low on charge, riders simply need to find the closest battery swapping location to swap the depleted battery for a fully charged one.
Electric bike companies have already built the proper infrastructure for this.
For example, Amperstand has 10 swapping stations, and Arc Ride has 42 stations with plans to extend.
“The extended battery life makes longer trips possible, giving drivers additional mileage each day. We expect the availing of this financing to make it more affordable for individuals to purchase and maintain electric motorcycles, helping scale their adoption in Kenya,” Vydrin added.
Triton Market Research estimates that the total number of e-bikes in circulation will reach 300 million worldwide, which is a 50 percent spike from 2019’s 200 million. The global e-bike market reached $23.2 billion in 2022 and is projected to top $34.6 billion by 2028.