Fintech company MOGO has invested Sh1 billion from the US International Development Corporation to finance electric vehicle acquisitions in Kenya.

Rauls Leitis, MOGO Business Development Project Manager, said that the investment targets increasing the adoption of e-bikes and tuk tuks in the country through financing at affordable interest rates.

He stated that a substantial amount of the funding will be used to facilitate customer purchases in order to enable the company to maintain low interest rates for loan requirements.

“MOGO is focusing on financing e-bikes and three-wheelers, making various brands of EVs accessible to Kenyans in Nairobi and other parts of the country,” said Leitis, Business Development Project Manager at Mogo.

“This initiative not only aims to mitigate the impacts of global warming by reducing greenhouse gas emissions but also economically empowers boda boda operators,” he added.

The firm assured that the electric vehicles will enable boda boda operators to earn at least Sh300 daily compared to those using fossil fuel motorcycles.

Most popular electric boda bodas operate on a battery-swapping model, where an empty battery can be quickly exchanged for a fully charged one within minutes.

Kenya’s e-mobility industry is already experiencing rapid growth, but the financing from the International Development Corporation (IDFC) is expected to propel this growth further by ensuring that end-user financing remains attainable and affordable, particularly to those who often lack access to traditional banking services.

“For electric mobility, this support is even more crucial due to the higher upfront costs compared to fuel-powered bikes,” it added.

“To drive the adoption of electric mobility, MOGO offers lower interest rates for electric bodas and significantly reduces the required down payment compared to fuel bikes, enabling more boda boda operators to own electric bodas.”