MOGO has invested 1 billion in Kes from the US International Development Corporation to finance electric vehicle acquisitions in Kenya.
According to MOGO Business Development Project Manager Rauls Leitis, the investment targets to increase the adoption of e-bikes and tuk-tuks in the country through financing at affordable interest rates.
Further, he stated that the funds will facilitate customer purchases, enabling the company to maintain low interest rates on 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,” he said.
“This initiative not only aims to mitigate the impacts of global warming by reducing greenhouse gas emissions but also economically empowers boda boda operators.”
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The Fintech company assured that the electric vehicles will enable boda boda operators to earn at least SKes 300 daily compared to fossil fuel motorcycles.
The most popular electric boda bodas operate on a battery-swapping model, in which an empty battery can be quickly exchanged for a fully charged one within minutes.
Additionally, financing from the International Development Corporation (IDFC) is expected to propel this growth by ensuring that end-user financing remains attainable and affordable, particularly for 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.”
“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.”
