MOGO to lend Sh1.3bn to Kenyans buying e-bikes
US Ambassador to Kenya Meg Whitman (right) chats with e-bike boda boda operators when she toured Mogo electric vehicle showroom in Nairobi on August 12, 2024.
What you need to know:
- The firm has over the past five years lent Sh20bn for boda boda and car loans.
- Kenya targets to cut greenhouse gas emissions by 32 per cent by 2030.
Electric mobility (e-mobility) asset financier, MOGO, is investing Sh1.3 billion to fund more Kenyans and businesses to acquire electric bikes and three-wheelers.
This is part of the firm's strategy to expand its electric vehicle (EV) financing portfolio in the country.
MOGO has revealed this as United States Ambassador to Kenya, Meg Whitman visited the companies EV showroom in Nairobi on Monday, where she also reaffirmed the US’s commitment to support Kenya’s transition to e-mobility.
MOGO was among three e-mobility firms in Kenya that have collectively received $30 million (Sh3.9 billion) in financing from the US International Development Finance Corporation (DFC).
High-quality jobs
“MOGO has invested Sh1.3 billion of this funding into expanding its EV financing portfolio, supporting Kenya’s green mobility initiatives by providing essential zero-emission vehicle financing to individuals and businesses in the transportation sector,” it said in a statement noting that it would concentrate on financing e-bikes and three-wheelers.
Ambassador Whitman noted that investing in electric vehicles and motorcycles would help Kenya create high quality jobs while cutting usage of fossil fuels.
“These investments create high-quality jobs for Kenyans in a growing industry, and they are part of an overall strategy to reduce dependence on fossil fuels, modernize the country’s extensive transport system especially in urban areas, and address growing climate crisis concerns,” she said.
Global warming
Mr Tomas Sudnius, MOGO’s CEO for Africa and Asia, noted that cost was one of the biggest barriers to acquisition of EVs in the region.
“By investing in e-mobility, we aim to not only expand access to economically empower Kenya’s fast growing MSME sector but also mitigate the impacts of global warming by reducing greenhouse gas emissions,” Sudnius said.
MOGO says it has over the past five years lent Sh20 billion for boda boda and motor vehicle loans to more than 120,000 Kenyans.
Kenya targets to cut greenhouse gas emissions by 32 per cent by 2030, with the government targeting to have at least 5 per cent of registered vehicles in the country by 2025 to be electric.
