US embassy, firm to boost transition to e-mobility

“Investing in electric vehicles and motorcycles benefits Kenya in multiple ways. These investments create high-quality jobs for Kenyans in a growing industry, and they are part of an overall strategy to reduce dependence on fossil fuels, modernise the country’s extensive transport system, especially in urban areas, and address growing climate crisis concerns,” noted Whitman.

Electric vehicles enable boda boda operators to earn at least Sh300 more daily compared to those using fossil fuel motorcycles. This increase in earnings stems from cost savings on fuel and maintenance, combined with lower interest rates offered by Mogo for electric boda bodas. Most popular electric bodas use a battery-swapping model, allowing for quick exchanges of empty batteries for fully charged ones within minutes.

“There are multiple factors that Kenya and Sub-Saharan Africa face generally but most crucially affordability is a key barrier to achieving e-mobility, and that is where we come in as Mogo. By investing in e-mobility, we aim to not only expand access to economically empower Kenya’s fast-growing MSME sector but also mitigate the impacts of global warming by reducing greenhouse gas emissions,” said Mogo Africa and Asia chief executive Tomas Sudnius. 

The transportation sector, primarily driven by fossil fuels, contributes significantly to the country‘s emissions.

Over the past five years, Mogo has lent out Sh20 billion for boda boda and motor vehicle loans, providing affordable financial products to more than 120,000 Kenyans. [Nanjinia Wamuswa]

E-mobility aligns with Kenya’s National Climate Change Action Plan (NCCAP) 2023-2027, Long-Term Low Emission Development Strategy (LT-LEDS) 2022-2050, and Nationally Determined Contribution to reduce greenhouse gas emissions by 32 per cent by 2030.

The NCCAP identifies the uptake of EVs as a key climate action in the transport and energy sectors. The government envisions that by 2025, at least five per cent of all registered vehicles in Kenya will be electric. According to the State‘s statistics, Kenya’s grid capacity is sufficient to support e-mobility.

The State has pledged to support the acquisition of electric motorcycles, aiming for 200,000 units by the end of 2024. The United Nations Environment Programme estimates that a global transition to electric motorcycles could prevent 11 billion tonnes of carbon dioxide emissions by 2050, saving motorcycle owners a combined Sh50 trillion ($350 billion) due to lower fuel and maintenance costs.