Mogo Kenya fuels Green transition with E-Bike financing for MSMEs
In a move towards a greener and more sustainable future, financial services firm Mogo Kenya has unveiled an initiative to facilitate the adoption of electric motorcycles in Kenya.
The company is set to offer financing options to companies importing e-bikes as well as to boda boda riders, a crucial segment of Kenya’s thriving e-commerce sector. By providing reduced interest rates for these electric two-wheelers, Mogo aims to drive upward mobility for Kenyans while contributing to the global shift towards eco-friendly transportation solutions.
“Electric bikes are rapidly becoming the future of rides globally, with many businesses moving to a greener and more economical solution. In financing both the businesses and customers alike, we’re aiming to create a sustainable business model for MSMEs in Kenya,” stated Mogo’s Head of Boda Business, Mikhail Vydrin.
Rising fuel costs, maintenance expenses, and the adverse environmental impact of petrol-powered motorcycles have spurred a growing interest in electric alternatives. The low-maintenance nature of e-bike batteries is a key advantage, enabling riders to save significantly on daily operational costs.
By embracing electric motorcycles, boda boda operators can save up to KES 400 on fuel and maintenance expenses daily, translating to an annual savings of up to KES 100,000. This increased disposable income will empower them to allocate resources towards essential needs such as their families, nourishment, and education. With an accessible down-payment of KES 15,000 for electric bikes compared to KES 35,000 for traditional 150 cc petrol bikes, Mogo’s reduced interest rates further sweeten the deal. Electric bike riders can now enjoy daily payments of just KES 380, representing a 15% cost advantage over their petrol-powered counterparts.
Notably, the convenience of battery swapping stations adds to the appeal of electric motorcycles. Riders no longer need to return home to charge their vehicles; instead, they can quickly swap depleted batteries for fully charged ones at conveniently located stations. Leading electric bike manufacturers like Amperstand and Arc Ride have already established a robust network of swapping stations, simplifying the charging process and boosting overall efficiency.
“The extended battery life makes longer trips possible, giving drivers additional mileage each day. We expect the availing of this financing to make it more affordable for individuals to purchase and maintain electric motorcycles, helping scale their adoption in Kenya,” emphasized Mr. Vydrin.
Global market insights provider Triton Market Research forecasts a staggering 50% surge in the total number of e-bikes worldwide, reaching 300 million by the near future. The global e-bike market, which reached a substantial US$ 23.2 Billion in 2022, is projected to surpass US$ 34.6 Billion by 2028, showcasing a remarkable CAGR of 6.89% during 2022-2028.
The driving forces behind this remarkable growth include heightened environmental consciousness, the burgeoning popularity of shared micro-mobility services, and continual technological advancements enhancing e-bike functionalities.
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