NCBA, BasiGo Strike Deal to Put 1,000 Electric Matatus on Kenyan Roads

NCBA Group and electric-vehicle company BasiGo have agreed to finance 1,000 electric vans for Kenya’s public transport market, giving matatu operators another route into a technology whose high upfront cost has slowed wider adoption.

• The arrangement combines conventional asset financing and leasing with BasiGo’s Pay-As-You-Drive model, allowing operators to either acquire electric vans outright or use a financing structure that spreads the cost of the vehicle and its operation over time.
• Under the new deal, established public service vehicle (PSV) SACCOs and transport companies can finance as much as 90% of an electric vehicle’s value over five years while individual SACCO members can access financing of up to 80% over four years. 
• NCBA is also backing BasiGo’s Pay-As-You-Drive model, which is designed to reduce the upfront burden of switching from a conventional vehicle to an electric one.

The model bundles the vehicle with services including charging and maintenance, allowing operators to pay according to their vehicle’s use rather than bearing the full cost of ownership at the outset.

The bank has committed KSh2 billion to an e-mobility financing facility and says it has so far financed more than KSh800 million in electric-vehicle assets.

“Through this partnership, Kenyan PSV operators now have multiple financing options, from asset finance to leasing, to add a BasiGo electric vehicle to their fleet.  With NCBA supporting BasiGo and our customers, we are excited to unlock the next level of scale for clean, electric public transport in Kenya,” said BasiGo CEO and Founder, Jit Bhattacharya. 

The company has begun locally assembling its Ma3e electric van in Mombasa with Associated Vehicle Assemblers, using complete knocked-down kits. The first 22 vehicles were delivered to customers in April and May. The van has a claimed range of as much as 300 kilometres.

The 1,000-vehicle financing target is separate from BasiGo’s earlier goal of putting 1,000 electric buses on Kenyan roads by 2027, and marks a broader push into the van segment of the PSV market, which is equally popular but often overlooked by EV solutions. 

The company has also previously partnered with KCB to provide asset financing for electric buses to PSV operators on terms comparable to those available for conventional diesel vehicles.