- KCB Bank Kenya and BasiGo Ltd have partnered to offer the bank’s customers access to flexible financing options to purchase electric cars
- Customers will get up to 90 per cent of funding with an extended repayment period of 36 months
- Customers will have access to embedded tracking and fleet management gadgets already installed on the electric bus and insurance financing
KCB Bank Kenya and e-mobility startup BasiGo Ltd have partnered to offer the bank’s customers access to flexible financing options to purchase electric cars.
According to the deal, customers will get up to 90 per cent of funding with an extended repayment period of 36 months.
The deal will also help customers reduce their greenhouse emissions and enhance their ability to respond to climate change through adaptation and mitigation measures.
In addition, customers will have access to embedded tracking and fleet management gadgets already installed on the electric bus and insurance financing. Also, battery charging, service, and maintenance shall be provided by BasiGo.
Commenting on the partnership, it Bhattacharya, CEO and Co-Founder at BasiGo said that the key to getting electric buses on the road in Kenya is to make them affordable to PSV owners.
“The partnership we have signed today with KCB Bank is game-changing. It will allow bus owners to secure asset financing for an electric bus exactly in line with how they have been purchasing diesel buses,” he said.
He added that with KCB’s pioneering support for this technology and BasiGo’s Pay-As-You-Drive financing; the company has made electric buses more affordable and more convenient for owners to purchase and operate than diesel buses.
BasiGo’ s electric buses are available to purchase on a blended Sale/Operating lease model. Under this model, the bus is available to purchase from KSh 5,000,000, with BasiGo keeping ownership of the battery within the bus.
The battery is subsequently leased to the PSV operator via the Pay-As-You-Drive (PAYD) subscription. BasiGo currently offers Pay-As-You-Drive subscriptions at a price of KSh 20 per kilometre driven through the subscription, BasiGo mitigates the risks to PSV operators by guaranteeing battery performance and providing all charging and maintenance for the bus throughout its life.
KCB Bank Director of Corporate Banking, Esther Waititu noted that the arrangement is in line with the Bank’s vision to leverage partnerships that seek to provide value to its customers.
“Entrenching sustainability in our operations means that we always consider our economic, social and environmental impact before we make any decision on partnerships and collaborations. We are delighted to partner with BasiGo as this reflects our commitment to supporting key customers to derive value from their long-standing loyalty,” Waititu said.
Also catered for are KCB SAHL Banking customers who, under the Shariah-compliant banking model, will purchase the electric buses from BasiGo at affordable rates.
BasiGo has recently concluded its pilot program in collaboration with Citi Hoppa and East Shuttle. The pilot buses have been in operation in Nairobi since March 2022 and have driven over 90,000 km and carried over 112,000 passengers. BasiGo has already received over 100 reservations for its K6 Electric bus and is set to deliver new buses in early 2023 to SACCO’s on the reservation list.
The deal comes when institutions are being called upon to embrace sustainable practices by adopting the UN Sustainable Development Goals (SDGs) as a guide to assist in the attainment of reduced global net human-caused emissions of carbon dioxide by about 45 per cent by 2030.
In a related story, BasiGo recently announced a $4.3 million Seed funding round, led by Novastar Ventures, with participation from several Silicon Valley investors.
BasiGo received the funding to commercialise its electric bus business model and launch a local assembly of electric buses in Kenya.
Bhattacharya said that with East Africa’s abundant renewable energy, the market could leapfrog to clean, modern electric transit when African cities emerge as the next centre of economic growth.
“The support and knowledge of this investor group will catalyse BasiGo in its mission to make East Africa a leader in inclusive, sustainable bus transport.”