The world of transportation is undergoing a revolution as more and more people turn to electric vehicles as a way to reduce their carbon footprint and combat climate change. This trend is especially evident in the public service vehicle (PSV) industry, where companies are seeking ways to transition from fossil fuels to more sustainable forms of energy.
In Kenya, one such company is leading the charge towards a more sustainable future. BasiGo is an e-mobility start-up and financing company that is supplying electric bus services to sub-Saharan Africa. The company’s electric buses are available to purchase on a blended Sale/Operating lease model, which allows PSV operators to purchase the bus for $41.4k (Kshs. 5,000,000) while still retaining ownership of the battery within the bus. The battery is subsequently leased to the operator via a Pay-As-You-Drive (PAYD) subscription, which is currently priced at $0.17 (Ksh 20) per kilometre driven.
BasiGo is making it easier for PSV operators to transition to electric buses by partnering with KCB Bank Kenya to provide flexible financing options. Under this partnership, customers will be able to secure up to 90% funding for their electric buses with an extended repayment period of 36 months. In addition, customers will have access to embedded tracking and fleet management technology, as well as insurance financing and battery charging, service, and maintenance from BasiGo.
This partnership is game-changing for the PSV industry in Kenya because it allows bus owners to finance electric buses in the same way they have been purchasing diesel buses. It also makes electric buses more affordable and convenient for operators to purchase and operate than diesel buses. By providing financing options and taking care of charging and maintenance, BasiGo is helping to mitigate the risks and costs associated with switching to electric buses for PSV operators.
BasiGo’s electric buses have already been put to the test in a pilot program in collaboration with Citi Hoppa and East Shuttle in Nairobi. Since March 2022, the pilot buses have driven over 90,000 km and carried over 112,000 passengers. The company has already received over 100 reservations for its K6 Electric bus and is set to deliver new buses in early 2023 to SACCOs on the reservation list.
The partnership between KCB Bank Kenya and BasiGo comes at a time when institutions are being called upon to embrace sustainable practices and adopt the UN Sustainable Development Goals (SDGs) as a guide to assist in the attainment of reduced global net human-caused emissions of carbon dioxide by about 45% by 2030. By providing financing options for electric buses and helping to reduce greenhouse gas emissions, KCB Bank and BasiGo are playing a crucial role in the transition to a more sustainable future.