MOGO Offers Low Interest Rates on Electric Vehicles to Accelerate E-Mobility Adoption in Kenya

MOGO, East Africa’s leading asset financier, is set to accelerate the adoption of electric vehicles (EVs) in Kenya by offering low-interest loans for electric boda bodas and tuktuks. This initiative follows a significant Sh1 billion investment from the US International Development Finance Corporation (IDFC).

Over the past five years, MOGO has disbursed Sh20 billion in loans for boda bodas and motor vehicles, benefiting more than 120,000 Kenyans. With the new funding, MOGO plans to finance the purchase of various brands of EVs, aiming to make them accessible to Kenyans across Nairobi and beyond.

Rauls Leitis, Business Development Project Manager at MOGO, emphasized the dual benefits of this initiative: combating global warming by reducing greenhouse gas emissions and economically empowering boda boda operators. “A substantial part of the funding will be used for customer purchases, allowing us to keep interest rates and loan requirements as low as possible,” Leitis stated.

Electric vehicles offer significant financial benefits for boda boda operators, enabling them to earn at least KES 300 more daily compared to those using fossil fuel motorcycles. This increase in earnings is attributed to savings on fuel and maintenance, combined with the lower interest rates provided by MOGO. Many popular electric boda bodas operate on a battery-swapping model, allowing for quick battery exchanges and minimizing downtime.

Kenya’s e-mobility industry is witnessing rapid growth, and the financing from IDFC is expected to further propel this expansion by ensuring that end-user financing remains affordable and accessible. MOGO’s services are tailored to the needs of the boda boda community, providing financing to individuals 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. 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,” Leitis added.

The transition to e-mobility is essential for reducing greenhouse gas emissions, a significant portion of which is contributed by the boda boda sector in Kenya. With more than 90% of Kenya’s electricity production being renewable, the electricity used to charge EVs is clean, further enhancing the environmental benefits of this transition.

MOGO ensures that all customers are well-informed before purchasing an EV. The onboarding process includes educating customers on the differences between fuel-powered and electric bikes, proper handling, battery swapping procedures, and other essential details to ensure they are fully prepared for the switch to electric mobility.

This initiative by MOGO is a significant step towards achieving Kenya’s environmental goals while providing economic benefits to boda boda operators, fostering a sustainable and prosperous future for the country.