Mogo Kenya is set to significantly impact the electric mobility landscape with plans to finance over 10,000 electric bodabodas over the next two years. This initiative is part of a broader funding effort supported by the United States International Development Finance Corporation (DFC). Mogo Kenya is one of three e-mobility companies in Kenya that have collectively secured $30 million (Ksh 3.9 billion) to advance electric mobility across the country.
As part of its commitment, Mogo Kenya has already invested Sh1.3 billion into expanding its electric mobility financing portfolio. Tomas Sudnius, Mogo’s CEO for Africa and Asia, highlighted the firm’s focus on financing e-bikes and three-wheelers, making a variety of electric vehicle (EV) brands more accessible to Kenyans nationwide. Over the past two years, Mogo has invested Sh140 million in electric bodabodas and financed 1,000 e-bikes.
Kenya’s electric vehicle market is among the fastest-growing in Africa, with registrations of battery-operated cars and bikes increasing more than fivefold in the past year. Much of this growth has been driven by asset financing companies, which play a crucial role in supporting the transition to electric mobility.
U.S. Ambassador to Kenya, Meg Whitman, commended Kenya’s strides in decarbonizing its transport sector during her recent visit to Mogo’s EV showroom in Nairobi. She noted that these investments not only create high-quality jobs but also contribute to reducing fossil fuel dependence, modernizing transport systems, and addressing climate change concerns.
A recent study by Strathmore University underscores the environmental benefits of transitioning to electric mobility. It reveals that a single petrol bike emits 4.2 tonnes of carbon gas annually, with the two million boda boda industry contributing to significant carbon emissions. Mogo Kenya’s investment aims to tackle these environmental challenges while economically empowering Kenya’s growing MSME sector.
The Kenyan government envisions that by 2025, at least 5 percent of all registered vehicles will be electric. With sufficient grid capacity to support e-mobility and a commitment to acquiring 200,000 electric motorcycles by the end of 2024, Kenya is poised for a substantial shift towards sustainable transportation. According to the UN Environment Programme, a global transition to electric motorcycles could prevent 11 billion tons of carbon dioxide emissions by 2050 and save owners up to Sh5 trillion (USD 350 billion) in fuel and maintenance costs.
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