KCB partners with BasiGo to finance Green PSV buses
By Winnie OnyandoCustomers in the Public Service Vehicle industry will now be able to access flexible financing options in a deal between KCB Bank Kenya and BasiGo Ltd, an e-mobility startup and financing company supplying electric bus services to sub-Saharan Africa.
The customers will now enjoy up to 90 per cent funding with an extended repayment period of 36 months while supporting them to reduce their greenhouse emissions and enhance their ability to respond to climate change through adaptation and mitigation measures.
In addition, customers will have the privilege to access embedded tracking, and fleet management gadgets already installed on the electric bus plus also insurance financing, battery charging, service, and maintenance shall be provided by BasiGo.
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“The key to getting electric buses on the road in Kenya is to make them affordable to PSV owners. The partnership we have signed with KCB Bank is game-changing. It will allow bus owners to secure asset financing for an electric bus exactly in line with how they have been purchasing diesel buses,” Jit Bhattacharya, CEO and Co-Founder at BasiGo, said.
“With KCB’s pioneering support for this technology and BasiGo’s Pay-As-You-Drive financing, we have made electric buses more affordable and more convenient for owners to purchase and operate than a diesel bus,” Bhattacharya said.
BasiGo’ s electric buses are available to purchase on a blended sale/operating lease model. Under this model, the bus is available to purchase from Sh 5,000,000, with BasiGo retaining ownership of the battery within the bus. The battery is subsequently leased to the PSV operator via the Pay-As-You-Drive (PAYD) subscription.
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BasiGo currently offers Pay-As-You-Drive subscriptions at a price of Sh 20 per kilometer driven through the subscription, BasiGo mitigates the risks to PSV operators by guaranteeing battery performance and providing all charging and maintenance for the bus throughout its life.
On the other hand, KCB Bank Director of Corporate Banking, Esther Waititu, said that they seek to provide value to their customers.
The partnership comes at a time when institutions are being called upon to embrace sustainable practices by adopting 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 percent by 2030.
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