3.28 million vehicles were registered in Kenya in 2018, including motorcycles, buses, heavy-duty trucks, and motorcycles as well as passenger cars and small commercial vehicles.
Because they are economical and environmentally friendly, governments all over the world are adopting electric vehicles. Some African nations, such as Rwanda, which started an electric car pilot project in October 2019, have made significant strides. Similar interest in these projects has been shown by major institutions throughout the world.
As more people switch to battery-powered cars as a result of climate change activism and the rise in international oil costs, NCBA Group, a bank with its headquarters in Kenya, has announced Sh2 billion (more than $16 million) in electric vehicle financing. The lender revealed in a statement that the financing is part of its green finance strategy for new personal and public transportation vehicles.
In accordance with the five-year agreement, consumers will be able to receive asset financing for up to 80% of the price of any personal or even public service car that they want. Additionally, for applications for loans for electric vehicles obtained within the initial 90 days, NCBA will offer a 10% interest rate on decreasing balance offers.
Dealers anticipate a rise in sales of Kenya’s over 1000 low-carbon automobiles as a result of the country’s high fuel prices. Due to recent geopolitical unrest in Europe caused by Russia’s invasion of Ukraine, fuel costs have increased beyond the means of most drivers. According to NCBA, there has been an increase in customer interest in purchasing electric vehicles.
“Over the past few months, our clients who are eager to buy electric vehicles have shown an increasing level of interest and requests.” Lennox Mugambi, asset finance director at NCBA, continued, “We view this Sh 2 billion investment as a chance to enable the government develop a clean, efficient, and secure transport system that would preserve an eco-friendly future.”
With local businesses and startups investing in the infrastructure and the local production of automobiles, Kenya has seen a rise in the demand for environmentally friendly transportation. In the global effort to minimize pollution, e-mobility is a key tenet that will help reduce the dependence on diesel and gasoline-powered vehicles.
Start-up for electric vehicles in Kenya BasiGo debuted a Sh5 million passenger electric bus in March to meet the increased demand. In a move to diversify into the “green” mobility market, which is anticipated to increase in response to efforts to combat pollution and climate change, Car and General (C&G) also announced in January that it will begin selling electric cars and tuk-tuks.
To establish electric vehicle charging centers, KenGen and its provider Kenya Power are now pursuing this strategy. KenGen is now importing vehicles to test the hubs after already setting up one station in Nairobi. Kenya Power, on the other hand, declared on Tuesday that testing of its stations in Nakuru and Nairobi will begin the next month. According to previous statements made by the utility company, there is enough electricity available during off-peak hours to power 50,000 buses and 2 million motorcycles.