The U.S. and Mogo, a prominent asset financier, have partnered to advance electric mobility in Kenya. U.S. Ambassador to Kenya Meg Whitman, during a visit to Mogo’s electric vehicle showroom in Nairobi, commended Kenya’s strides towards decarbonizing its transport sector. Mogo, along with two other e-mobility companies, has secured approximately Sh3.9 billion ($30 million) from the U.S. International Development Finance Corporation (DFC) to support green transportation initiatives.
Mogo has already invested Sh3 billion of this funding into expanding its electric vehicle (EV) financing portfolio, focusing on e-bikes and three-wheelers. The investment aims to support Kenya’s transition to zero-emission vehicles, benefitting both individuals and businesses in the transportation sector. Ambassador Whitman highlighted the multifaceted benefits of investing in electric vehicles, including job creation, reduced reliance on fossil fuels, and modernization of urban transport systems.
The shift towards electric mobility is also economically advantageous. Statistics reveal that boda boda riders using electric motorcycles earn an additional Sh300 daily compared to those using fossil fuels, thanks to savings on fuel and maintenance. Mogo’s battery-swapping model for electric bodas facilitates rapid exchanges, further enhancing the efficiency and appeal of electric mobility.
Tomas Sudnius, CEO of Mogo Africa & Asia, emphasized that investing in e-mobility not only supports Kenya’s growing MSME sector but also addresses global warming by reducing greenhouse gas emissions. This aligns with Kenya’s National Climate Change Action Plan (NCCAP) 2023-2027, Long-Term Low Emission Development Strategy (LT-LEDS) 2022-2050, and the Nationally Determined Contribution (NDC) to cut emissions by 32 percent by 2030.
The Kenyan government envisions that by 2025, at least 5 percent of all registered vehicles will be electric, and it has pledged to support the acquisition of 200,000 electric motorcycles by the end of 2024. With Kenya’s grid capacity supporting e-mobility, this ambitious target reflects the government’s commitment to green transportation.
Over the past five years, Mogo has disbursed Sh20 billion in loans for boda bodas and motor vehicles, providing affordable financing to over 120,000 Kenyans. The potential global impact of transitioning to electric motorcycles is significant, with estimates suggesting a reduction of 11 billion tonnes of carbon dioxide emissions by 2050 and savings of Sh5 trillion ($350 billion) in fuel and maintenance costs. #ElectricMobility #Kenya #GreenTransport #SustainableDevelopment #ClimateAction #EVFinancing
