According to Roam, the partnership also increases the transition to electric motorcycles from traditional motorcycles. Motorcycle riders, popularly known as boda boda riders, are expected to increase their daily earnings by 30%. 

Roam told TechCabal that it is the largest provider of electric motorcycles putting out the largest volumes in Nairobi targeting boda boda riders and B2B providers. For riders participating in the deal, Mogo will offer financing at a rate of KES 25,000 deposit, and a daily repayment of KES 682 for 24 months. The package includes a motorcycle, battery, charger, and two helmets and vests.

“At Roam, our mission is clear, we want to provide the best and most affordable electric motorcycle to the market and Mogo is a great partner in accelerating that mission,” said Mikael Gånge, Co-Founder and Chief Commercial Officer of Roam.

Kenya boasts of about 3 million boda-boda riders according to James Macharia, the minister of transport. The United Nations also estimates that about 5 million Kenyans get their income from riding motorcycles. However, the Kenyan government is keen on converting most of the fuel-based motorcycles to electric.

President William Ruto had on September 1, 2023, launched a national e-mobility programme which has three-wheeled tuk-tuks, or auto rickshaws the focal point of a transition to green transportation. Kenya’s National Transport and Safety Authority (NTSA) plans to convert 2-3 million boda bodas to being electric by 2030.  

Raul Leitis, business development project manager at Mogo said the deal with Roam will go beyond Kenya to the rest of the continent and electric motorcycles will surpass fuel motorcycles in no distant time. 

“We see that the electric motorcycle market is ever expanding and with Roam’s innovative products that enable customers to not only charge at home but also at the Roam Hubs, we believe the electric motorcycle market will eventually become larger than the petrol one,” Leitis said. 

The $14 million Series A funding round was led by Equator Africa and participation from At One Ventures, TES Ventures, Renew Capital, The World We Want, and One Small Planet, among other prominent private and institutional investors. The $10 million debt facility was provided by the International Development Finance Corporation (DFC). 

The funding is significant and comes at a time when attention is shifting to electric vehicles as countries around the world make efforts to make the environment safer. EV sales are projected to reach 16.7 million in 2024, representing a 20% increase from the previous year, according to estimates from the BloombergNEF. Roam which designs, develops, and deploys electric motorcycles and buses said it has managed to capture or mitigate over 120,000 tonnes of carbon emissions. This is primarily the inspiration for investors like DFC in Roam. James Polan, Vice President of the Office of Development Credit at DFC said the debt facility to Roam aligns with its goals for a cleaner future. 

But transitioning to electric vehicles isn’t cheap with the price of batteries and building infrastructure for rollout making the cost for individual owners very expensive. The Kenyan government, however, is undeterred, as they have set a 5% target for new vehicles to be electric by the end of 2025. Roam and its rival BasiGo are at the forefront of ensuring the target is achieved by providing cheaper options for consumers in the country.   

Roam offers riders in the East African country payment flexibility and the option of battery ownership. This lets users charge their batteries at a standard household outlet and significantly reduces the cost of operations while increasing the ability to travel longer distances. 

“As Africa embraces the move toward electric vehicle technology, we are proud of our impact on the environment and livelihoods across Kenya and the wider continent. This funding is a critical step for Roam to achieve our strategic objectives in scaling up and increasing utility to our customers,” said Rajal Upadhyaya, chief financial officer of Roam. 

In line with the expansion, Roam will increase the utility of its motorcycles to riders through the deployment of Roam Hub stations. These are multiple open-architecture electric motorcycle charging stations that offer a wide array of after-sales services including the option to rent batteries for a flexible period.

“At Equator, we are committed to building a future with efficient, accessible, and sustainable mobility. Roam’s innovative electric mobility platform is at the forefront of this transformation, and we are proud to provide catalytic funding that will enable Roam to build a cleaner, more equitable future for African cities,” said Nijhad Jamal, partner at Equator.

BasiGo, an electric bus company with operations in Kenya and Rwanda has announced $5 million in debt funding from the British International Investment (BII), the UK’s development finance institution and impact investor. The $5 million is borrowed money, and unlike equity funding, where companies give away ownership in exchange for capital, debt funding involves borrowing money that needs to be repaid. This means that BasiGo will repay BII the sum on agreed-upon terms.

The funds will be used to scale electric bus assembly in Kenya as the company races to deliver 100 buses in the country. So far, BasiGo has 19 buses on Nairobi streets, which are run by multiple matatu (privately-owned mini-buses used for public transport) companies.

Jonathan Green, co-founder, and chief financial officer of BasiGo, said: “Because electric buses in Kenya are powered by the country’s abundance of renewable energy, electrification of public transport in Kenya holds transformative potential.”

BasiGo offers its buses to matatu companies based on its pay-as-you-drive model. Customers have an option to buy an electric bus without a battery for a lower upfront cost. However, they can opt for a pay-as-you-drive subscription, which covers the battery lease. This subscription also provides perks like free charging at BasiGo’s stations and maintenance. The K6 electric bus costs $35,600 initially, and the subscription is $0.14 per kilometre.

In 2022, BasiGo raised nearly $11 million. After three months of launching in Kenya, it secured $4.3 million in seed funding, with Novastar Ventures leading the round. This funding was supported by various investors, including Moxxie Ventures, Nimble Partners, Spring Ventures, Climate Capital, and Third Derivative, with $930,000 raised in a pre-seed round in late 2021. Then, in November 2022, BasiGo raised $6.6 million in equity funding, with Novastar, Mobility54, and Trucks.vc jointly leading the way.

In November 2023, BasiGo received a $1.5 million grant from the United States Agency for International Development (USAID) to support its recently launched pilot initiative in Kigali, Rwanda.

Possible Electric Vehicle Solution (Possible EVS), a Nigerian electric mobility company in Abuja, is setting up plants to manufacture electric vehicles in Nigeria. 

“We’re in the design and production phase,” Mosope Olaosebikan, CEO of Possible EVS, told TechCabal in an interview. “Hopefully, by next year, we will start assembling in Nigeria but right now we’re assembling abroad.” 

Located in the Idu industrial area of Abuja, the manufacturing plant, when fully operational, will produce up to 10,000 electric vehicles yearly—including minibuses, tricycles, pick-up, and taxis—at its initial phase, according to Olaosebikan.

Possible EVS is among other electric mobility startups on the continent justling for a top spot in Africa’s nascent EV sector, which is estimated to reach $21.4 billion in value by 2027. Spiro, an e-mobility company, signed a $63 million debt financing to fund two electric motorcycle assembly and battery manufacturing plants in Benin and Togo in 2024. Roam, an electric mobility company, recently introduced Kenya’s first locally manufactured electric bus and Qore, a Sterling Bank-backed company in Nigeria, is converting regular vehicles—motorcycles, tricycles and mini buses—to electric vehicles and will deploy 100 electric tricycles in the next month. 

Electric taxis 

While Possible EVS is primarily a manufacturer of electric vehicles, the company recently launched an EV based taxi service as a use case. Currently, it is testing the electric taxis in Abuja and will deploy them for use this month. “The testing phase is for us to get the data and understand human behaviour,” Olaosebikan told TechCabal. “So far, the feedback has been exciting.”

The electric taxis can go 400 km on a single charge—about 37 round trips between Garki and Jabi, or a one-way trip from Abuja to Kaduna. Possible EVS has plans to expand fleets of electric taxis to Lagos and Akwa Ibom at the end of the year. 

Possible EVS also offers a public charging station at its recently launched electric vehicle experience centre (EVEC)—which it opened to sensitise people on the use of electric vehicles—in Abuja. While other EV companies like  Qore offer battery swaps for depleted batteries at its charging station, Possible EVS fast charging infrastructure recharges an electric vehicle to full capacity in under an hour at the rate of ₦1,200 ($1.56). The startup also runs a mobile charging station that can recharge EVs at any location—just in case your electric vehicle runs out of battery in the middle of the road.

Electricity supply is abysmal in Nigeria; the startup operates a hybrid electric charging station, a 50% mix of solar energy and grid electricity supply. The company plans to deploy a completely off-grid solution which Olaosebikan explained was a cheaper alternative. 

Funding strategy and sales model

The company raised $5million internally for its initial fund raise and is looking to raise more funds by Q1 2024. The company, which runs an asset financing model, says it primarily makes money off the sales of electric vehicles. Olaosebikan says the company is currently in talks with financiers and people willing to do hire purchase. “We are manufacturers, at the end of the day and we just seek partnership with various companies: banks, the government and companies like Moove, that can do asset financing.”

While Possible EVS is looking to explore the partnership route for the sale of its vehicles, Olaosebikan says there are arrangements for individuals who want to purchase the EVs for personal use. By his estimates, the average cost of an EV is between ₦12 million ($15,629) and ₦200 million ($260,497). 

While Possible EVS is putting finishing touches on the launch of its assembly plant, the company is set to launch an EVEC centre in Lagos and expand its multiple charging points across the country before the end of the year. It will  also expand its fleet of electric taxis to Lagos and Akwa Ibom states in Nigeria, Olaosebikan told TechCabal. 

Cet article est aussi disponible en français

First published 10 September 2023

Legislators and electric vehicle (EV) manufacturers often do not disclose their motivations for promoting the climate change agenda in a continent that could face additional environmental problems should EVs be adopted at scale.

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Last week, the Africa Climate Summit was held in Nairobi, Kenya. The conference was attended by key delegates from African countries, international organisations, and the private sector. The summit was a significant event for Africa, as it was the first time African leaders had come together to discuss climate change on a continent-wide scale. It also served as a platform for multiple electric vehicle (EV) companies—including BasiGo, which serves Nairobi with 20 electric buses for public transport—to showcase their products.

The argument is that vehicles powered by fossil fuels are bad for the environment, and there is a need to shift focus to EVs as they do not use an internal combustion engine (ICE). This makes EVs a clean and eco-friendly alternative to vehicles powered by petrol or diesel. 

But is that the case? 

Chart by TC Insights

EVs are often seen as a solution to climate change but are not without problems. They still rely on a consumerist and car-based approach to transportation, which is not sustainable in the long run. Besides, producing electric cars can harm the environment, and EVs do not address the root causes of climate change.

Carbon emissions from transport in Africa

Africa has about 72 million vehicles, but only seven of its 54 countries are responsible for most of the greenhouse gas emissions from transportation. The emissions are growing at an alarming rate of 7% per year. This is due to poor fuel quality, old vehicles, and the lack of mandatory emission tests. More than half of African countries have quality worse than European fuel quality from 30 years ago.

Assuming we don’t effectively tackle climate change and the air pollution generated by ICE vehicles, we’re facing some major issues: a widespread decline in animal and plant species, a surge in natural disasters, severe air pollution, depletion of water resources, and many other challenges. Given the substantial emissions coming from road vehicles, it’s clear that we must cut the dependence on diesel-powered engine vehicles. The solution often debated is the choice between electric vehicles and ICEs, but EVs alone might not provide a solution, given that they lack range.

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And this is the primary problem…

The major issue with electric cars is carbon lock-in. This occurs when notable investments are made in resources such as power plants or EVs, creating incentives to keep using them. Companies and governments are reluctant to switch to better solutions because of the hefty capital investments and associated opportunities. This puzzle extends to EV companies, who may not prioritise the most effective climate crisis solutions. Afterwards, moving away from temporary fixes like mass electric car retrofits is challenging.

It is better to think beyond these partial measures to address the climate crisis. Instead of investing in massive electric car investments, Africa could allocate resources more effectively, such as building mass transit and promoting sustainable construction practices that enhance walkability and micro-mobility options. Breaking free from a vehicle-centric system is the real transformative thinking needed.

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More problems exist

Electric vehicles offer several advantages, such as being safe to operate indoors and having a greener footprint. However, they face three significant challenges. 

First, battery technology lags due to a historical setback in development. Lithium-ion batteries, common in electric cars, have limited energy density and pose safety risks in case of fires. Their production isn’t environmentally friendly, too, needing recycling to prevent pollution. 

Second, the African electrical power infrastructure lacks headroom, often relying on outdated and polluting energy sources. Electric vehicles draw substantial power, mostly during non-renewable energy peak periods, compromising their environmental benefits. 

Third, insufficient neighbourhood electrical capacity discourages the widespread use of electric vehicles, leading to business operational challenges.

Consider the situation in South Africa, Africa’s most industrialised economy. This year, the country has experienced frequent power outages lasting 10 hours daily. At the start of the year, even though only half of the population is connected to the electrical grid, many neighbourhoods could only support their power needs for a maximum of six hours per day. Is this the same infrastructure that is set to sustain EVs for transportation?

Commuters need to question the real reason for EVs push

Legislators often avoid discussing that electric vehicles cannot fully address the environmental issues associated with transportation. On the other hand, EV manufacturers are eager to promote electric cars as a solution, advocating for tax credits and incentives to encourage their adoption, which translates to more sales. But the reality is that electric vehicles can functionally not resolve carbon emission problems quickly and gainfully. Besides, focusing on electric buses and cars as a primary mode of transportation is highly inefficient in terms of urban space, which is another vital aspect of the climate change problem.

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To make electric vehicles truly eco-friendly, Africa needs advancements in solid-state batteries, increased green energy sources like nuclear or geothermal, and the expansion of micro-grid technologies. These features and technologies are crucial for alleviating the issues associated with climate change, but full implementation may take time.

That’s not all: Africa needs a robust grid capable of handling increased demands. A smoother transition from fossil fuels is also necessary to avoid unnecessary complications. Transitioning to electric vehicles before addressing these key elements undercuts their positive impact on climate change and introduces environmental and societal challenges the continent is unprepared for.

Sometimes, an iterative approach is better than rushing into new technology. Opting for hybrid vehicles over electric ones may be a more sustainable choice until other issues associated with transitioning to EVs have been addressed. Achieving green EVs requires a holistic approach, covering green energy storage, generation, and reliable distribution, though not all elements will be in place in this decade.

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Kenn Abuya

Senior Reporter, TechCabal.

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Nigeria’s transport sector is the biggest contributor to greenhouse gas emissions. But Qore, a renewable energy mobility company backed by Sterling bank, wants to reduce emissions by converting light electric vehicles—motorcycles, tricycles and minibusses—to electric vehicles. These light EVs can go up to 60 km on a single charge—12 trips from Maryland to General hospital Ikeja or the length of Admiralty road 12 times.

“It just requires us to remove existing oil guts and then basically replace them with the batteries and electric motors,” said Akin Akingbogun, head of the Mobility team at Qore. In Nigeria, motorcycles, tricycles and mini-buses are mainly used for passenger transport and deliveries. Qore recently launched a self-serve public charging station in Lagos. It provides battery swaps for its light EVs; users can exchange their depleted batteries for pre-charged ones at Qore stations and pay for recharging and using the battery. 

Qore is testing prototypes and will deploy 100 tricycles in Kano next month. “We’ve been trying to look at all the basic physical indices, like the range, the temperature and other relevant information,” Akingbogun told TechCabal. 

While electric vehicles are cheaper to maintain than gas-powered cars, conversion is expensive. Olabanjo Alimi, Group Head for Renewable Energy and Transportation at Sterling bank, couldn’t share cost estimates for these conversions. “Giving a number for the price of converting each vehicle will be misleading.” Qore’s approach is to focus on a group of clients rather than individual clients. “The more of those numbers we have, the better it is for us to blend the numbers and have more reasonable costs. ” Alimi said. 

Charging stations need electricity, and in a country where the electricity supply is unreliable, Qore’s workaround involves using a mix of renewable energy and grid electricity supply. “We have conversations with the [electricity] distribution companies that allow us to buy a volume of electricity as a primary source, and then we use renewable energy as a backup as much as possible,” he said.

Qore’s Financing Model

While the electric vehicle market on the continent is estimated to reach $21.4 billion in value by 2027, short-term progress is slow. For companies like Qore, it’s all about playing the long game. “Anyone coming into the EV market right now knows it’s not something that you begin to make money off in the very early days,” Alimi told TechCabal.  Qore currently makes money from converting Internal Combustion Engines to EVs alongside revenue from users paying to recharge their batteries. 

Qore currently finances two-wheelers and three-wheelers for public transport and has plans to add cars and public buses into its operations. “We can finance across the entire market segments. Going up all the way to the private users or the mass transit buses is a bit tricky because the amount of energy required to apply those buses is massive,” Alimi said.

Electric bus company BasiGo has expanded its services to Rwanda, making the country its second base after operating in Kenya for about two years. The startup’s goal in Rwanda remains the same—revolutionising public transport systems by introducing electric vehicles. BasiGo plans to launch in partnership with AC Mobility, which provides automated fare-collection systems for public transport. The plan is to introduce electric buses in Kigali by October 2023, in collaboration with three bus operators: Kigali Bus Service, Royal Express, and Volcano Express. BasiGo employed a similar approach in Kenya, where it partnered with Matatu companies like Super Metro, resulting in 19 electric buses currently operating in Nairobi, with over 100 others reserved for the future.

Speaking on the coming launch, Jones Kizihira, CEO of AC Mobility Rwanda, said, “We are excited to partner with BasiGo to drive Rwanda’s public bus electrification. The country has recorded rapid transformation, creating a need for a more robust and cost-effective public transport system. The electric buses will help ease the cost burden of public bus transporters and advance Rwanda’s transition to clean mobility.”

Why Rwanda?

According to Jit Bhattachary, BasiGo’s CEO, the startup chose to expand to Rwanda because the country  “has led the way in creating an enabling environment for e-mobility.” He told TechCabal, “The country has indicated strong interest in transitioning their public transport fleet to electric.  Also, 58% of Rwanda’s electricity comes from renewables. There is greater near-term impact on climate emissions from electrifying public transport in markets like Kenya and Rwanda where the buses are recharged primarily from renewable energy.”

Read more: Roam Motors, BasiGo have a long way edge out diesel buses in Nairobi

The role of AC Mobility in the expansion 

According to BasiGo’s CEO, AC Mobility is a technology player for Rwandan public transport operators. Its fare collection systems are widely used on city buses in Kigali. Through the partnership with BasiGo, bus operators will benefit from a seamless experience covering fare collection and e-Bus operations. “AC Mobility’s fare collection systems are present on the vast majority of city buses operating in Kigali,” Jit Bhattachary explained to TechCabal.

The pay-as-you-drive model reduces upfront costs 

As in Kenya, the previously mentioned bus operators collaborating with BasiGo will purchase e-buses from the firm using the pay-as-you-drive model. While a fully decked-out BasiGo electric bus can be costly, customers have the option to purchase one without a battery at a reduced price. The pay-as-you-drive subscription covers the battery lease and includes benefits such as complimentary charging at BasiGo’s charging stations and free service and maintenance. In Kenya, the K6 electric bus is available at an upfront cost of $35,600, with a pay-as-you-drive subscription of $0.14 per kilometre.

“Our mission is to create the future of clean, electric public transport across Africa. We see a great opportunity in Rwanda for our business model to unlock the potential of e-buses in Rwanda and help the country accelerate their transition to sustainable and inclusive public transport,” added Bhattachary.

No expansion plans beyond Kenya and Rwanda – for now

BasiGo has no plans to expand beyond these two markets for now. It plans to deliver 100 additional buses in Kenya and others in its new market. “Our focus right now is on scaling the best possible e-bus solution for our clients in Kenya and Rwanda, from passengers who board our buses to the operators who rely on them every day to run their business.  What you should expect is more buses to hit the road in both markets,” said the CEO.

BasiGo raised almost $11 million in 2022. Three months after launching operations in Kenya, it secured $4.3 million in seed funding. Novastar Ventures took the lead in that funding round and was joined by a mix of investors from Silicon Valley, both existing and new. Some notable participants included Moxxie Ventures, Nimble Partners, Spring Ventures, Climate Capital, and Third Derivative. The $4.3 million funding included $930,000 raised during the pre-seed round in late 2021. In November 2022, BasiGo secured $6.6 million in equity funding. This funding round was jointly led by Novastar, a prominent Africa-focused VC firm, alongside Mobility54, the corporate venture capital arm of Toyota Tsusho, and Trucks.vc, a Silicon Valley-based VC firm focused on supporting startups in the transport sector.

The e-mobility landscape in Rwanda

Rwanda is one of the African countries that has initiated incentives to encourage the adoption of electric vehicles. Fiscal measures include capping electricity tariffs for charging stations at the industrial rate, making charging more affordable. EVs, spare parts, batteries, and charging station equipment are exempt from import and excise duties, receive zero-rated VAT treatment, and are exempt from withholding tax, further supporting the transition towards sustainable transportation.BasiGo now joins KABISA, a Rwandwese startup that aims to tackle existing barriers in the auto sector with a comprehensive electric vehicle ecosystem. Its mission is to enhance accessibility to environmentally friendly transportation. KABISA sells and leases electric vehicles and is establishing a public charging network. It plans to launch an electric vehicle maintenance garage in Kigali.

Lagos, Nigeria’s bustling metropolis, aims to achieve a zero-carbon goal by 2050. While significant policies—like the five-year Climate Action Plan (CAP) 2020-2025—have been implemented to achieve this goal, Lagos is exploring new alternatives like electric buses to reduce greenhouse gas emissions. With the transportation sector accounting for over 60 percent of greenhouse gas emissions in the state, the electric buses—the result of a partnership between Oando Clean Energy Limited (OCEL) and Lagos Metropolitan Area Transport Authority (LAMATA)—will provide a “viable, competitive, and environmentally friendly” alternative to their conventional counterparts: BRTs and the iconic yellow Danfo buses. 

While questions of whether the electric buses will stop in Lagos traffic might arise, the buses can travel for up to 280 kilometres (Km) before needing a charge. On a full charge, passengers can travel from Oshodi to Obalende—26.4km—to and fro approximately five times before the buses must be recharged. 

There are just two electric buses in Lagos, plying Oshodi to Obalende and Oshodi to Ikorodu routes. According to Oando, these buses will be used as a test run, a proof-of-concept phase, to establish the viability of electric vehicles for mass transportation in Lagos State and derive key learnings for an expanded program across the country. The fare prices of the electric buses and the regular BRTs are the same. “Remember, we are still at the proof-of-concept phase, so we can not introduce differential fare now until the data is gathered to tell us what we need to do,” said Kola Ojelabi, public relations officer for LAMATA. 

TechCabal asked if there are plans to replace the regular BRTs in Lagos with the new electric buses in the future, “The proof of concept phase will determine the next step,” added Ojelabi.

“It’s time for electric buses”

Nigeria’s inflation rate inched up to 22.27% this year. With the recent removal of fuel subsidies, many commuters have experienced difficulties getting public transport due to a hike in fare prices. Duncan Byencit, a senior associate researcher at Cleantech Hub, believes that adopting electric vehicles for mass transit could be an antidote to commuters’ worry. Byencit suggests that using electric buses as mass transit in the state will offer a cheaper alternative as electric vehicles are three times more efficient and require minimal maintenance compared to regular vehicles. 

Byencit asserts that electric buses could also help reduce the traffic congestion in Lagos and the carbon emission in the state. “Most of the emission comes from small cars in Lagos, so it will be good to transit to mass transit buses and encourage people to move to them because it will not only reduce traffic but also reduce the emission that will be released,” she said.

While electric buses hold great promise, the poor maintenance culture in Nigeria poses a challenge. “If those buses are properly maintained by the drivers and whoever is in charge of it, they are very sustainable,” Byencit asserts.

While Oando and LAMATA continue to test the waters,  Byencit is optimistic about nationwide adoption. “This is the bold step we have been waiting for. Now that Lagos has taken the lead, we can hope that other states will follow suit so that at least we can go by state-by-state adoption. And then, finally, the government can now take up the duty to push for it,” Byencit concluded.

Electric buses are becoming a common sight in Nairobi. These buses are primarily offered by two companies, Roam and BasiGo, who have been at the forefront of popularising electric vehicles in the country. 

Starting with these buses, Kenya is attempting to match the strides made by developing nations, such as the U.K., which plans to replace petrol or diesel-powered vehicles with electric ones by 2030. The U.K.’s approach is different because it targets private vehicle owners and has received government backing of more than £1 billion in vehicle charging infrastructure and hundreds of millions of pounds in grant schemes to steer motorists to electric vehicles. On the other hand, Kenya is focused on electric public transportation by small companies and launching electric mobility tariffs to make ownership as affordable as possible.

All about reducing carbon emissions

Jit Bhattacharya, the CEO of BasiGo, and Albin Wilson, the chief product and strategy officer of Roam Motors, shared their insights on the benefits, challenges, and future of electric motoring in Kenya with TechCabal. Their responses shed light on the advantages of electric vehicles (EVs) in the Kenyan context.

A key point highlighted by Bhattacharya and Wilson is the importance of transitioning away from imported petroleum fuels. Like many other African countries, Kenya heavily relies on imported fossil fuels for transportation, which strains the economy and contributes to environmental pollution and climate change. Kenya seeks to reduce its dependence on imported petroleum products for vehicles by shifting to EVs.

“The greatest benefit of e-mobility in Kenya is the shifting away from dependence on imported petroleum fuels and instead using domestically produced renewable electricity to power our transport,” Bhattacharya says. “Replacing a single diesel bus in Nairobi with an electric one avoids the consumption of 20,000 litres of imported diesel fuel per year and replaces it with 50 MWh of renewable electricity produced in Kenya. It further eliminates the toxic air pollution from diesel tailpipe emission and reduces CO2 emissions by 50 tonnes per year.”

Wilson highlighted other benefits, such as less noise and reduced operational expenses. “Any user of our vehicles (motorcycles) lowers operational expenses by 76%, and their fleets have less noise and reduced emissions,” he said.

Why electric buses and not electric cars?

Vehicles are not cheap in Kenya, and electric vehicles attract an even higher price tag. Besides, people who can afford them have mentioned high maintenance costs and fuel prices. TechCabal wanted to understand if this was one of the issues facing electric motoring in Kenya and why it is the best approach to start with electrifying mass transit vehicles.

“The key challenge to electric vehicles in Kenya is the high upfront cost. To directly address this challenge, BasiGo designed our Pay-As-You-Drive financing model,” Bhattacharya said. “One of BasiGo’s main values is to make the benefits of electric mobility accessible to all people. Most people in Kenya cannot afford private passenger cars. A recent study by the government found that 80% of people rely on a bus or walking every day to get to and from work and other activities. We are focused on electric buses to bring the benefits of electric vehicles accessible to the mass market.”

Are the electric buses in Nairobi enough?

According to Bhattacharya BasiGo’s current fleet in Nairobi consists of 17 BYD K6 model electric buses. These 25-seat buses have a driving range of 250 kilometres and can be recharged in two hours.

In contrast, the Roam Rapid by Roam Motors, which plies the same routes in Nairobi, has a larger battery and an additional range of up to 360 kilometres. Its passenger carrying capacity is also bigger at 77 passengers. However, the bus has been designed for the bus rapid transit (BRT) system, and according to Wilson, only one unit runs operations in Nairobi. He, however, stated that additional Roam Rapid buses will be added as soon as Kenya finishes setting up the BRT infrastructure.

Overall, these are very few buses for a city where Matatu operators manage hundreds of petrol or diesel-powered buses, and it is not often that passengers can ride in one. 

How much do electric buses cost in Kenya?

Matatu operators and bus owners are the key customers of both BasiGo and Roam. BasiGo, in this case, offers them an electric alternative to diesel buses through the Pay-As-You-Drive financing model. Currently, BasiGo has electric buses deployed with six separate Nairobi operators.

BasiGo’s financing model is quite straightforward. Owners can purchase the electric bus without the expensive battery for a similar upfront cost to a diesel bus. They then pay for the battery through a Pay-As-You-Drive subscription, including leasing the battery, free charging at BasiGo’s charging stations, and free service and maintenance. The upfront price for a K6 electric bus is KES 5 million ($35,600), with a Pay-As-You-Drive subscription of KES 20 ($0.14) per kilometre.

Roam will not adopt a Pay-As-You-Drive model. However, it will target bus operators with larger fleets in a business-to-business model. Device financing will be offered to interested SACCOs, with perks such as maintenance and charging infrastructure being offered by the company. These buses are scheduled to launch before the end of 2023.

While the buses offer more amenities such as access to charging ports, better legroom and free Wi-Fi, passengers pay the same fare as diesel-powered buses. 

The competition and expansion plans 

In terms of competition, the buses’ main competitors in the electric motoring space in Kenya are the diesel buses manufactured by foreign companies like Isuzu, Mitsubishi, Hino, Mercedes, and Hino. Roam’s Wilson believes that gas-powered buses are their biggest rivals. He adds that any other company trying to enter the Kenyan market will not be Roam’s rival.

“Anyone trying to launch electric vehicles is helping us out in electrifying transport systems in Kenya, East Africa, and Africa at large. So, the only competition we really see is more diesel vehicles slowing down the growth of electric vehicles,” Wilson said.

When asked about expanding operations beyond Nairobi, Bhattacharya stated that BasiGo’s current focus is solely on the Nairobi market. However, as they scale their operations in Nairobi, they plan to expand to other cities in Kenya and across East Africa.

Roam Rapid buses are also limited in Nairobi, although Roam Air is available nationwide. There are no plans to go beyond Kenya for now, although that is always a plan as soon as a company starts to scale and grow.

The future of electric motoring in Kenya

TechCabal wanted to know from Bhattacharya about the future of electric motoring in Kenya, considering the country’s unreliable power grid. He told this publication that BasiGo had been operating electric buses in Nairobi for over a year, during which power outages have only affected the ability to charge the buses.

“BasiGo has had electric buses operating in Nairobi for over a year. Our buses have now driven over 280,000 kilometres and carried over 350,000 passengers. In that entire time, power outages have only impacted the ability of our buses to charge. Electric buses primarily recharge during nighttime hours when there is a low electricity demand and the grid is quite reliable,” added the CEO.

Lastly, when asked about the future of BasiGo, Bhattacharya revealed their growth ambition. The company aims to deliver 1,000 electric buses to operators across Kenya within three years. Roam, however, plans to wait for the completion of the BRT network to launch additional buses and will start working with operators before the end of the year. It has not revealed how many fleets will be launched at first. 

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