East Africa’s leading asset financier, MOGO, has announced a Sh1 billion investment funded by the US International Development Corporation (DFC) to support the financing of electric boda bodas and tuk tuks at competitive interest rates.
Over the past five years, MOGO has lent Sh20 billion for boda boda and motor vehicle loans, providing affordable financial products to more than 120,000 Kenyans. The newly injected funds will be directed towards increasing the adoption of electric vehicles (EVs) in the country.
“MOGO is committed to financing e-bikes and three-wheelers, making various brands of EVs accessible to Kenyans in Nairobi and beyond. This initiative aims to reduce greenhouse gas emissions while economically empowering boda boda operators,” stated Rauls Leitis, Business Development Project Manager at MOGO. “A significant portion of the funding will facilitate customer purchases, allowing us to maintain low interest rates and loan requirements.”
Electric vehicles enable boda boda operators to earn an additional Sh300 daily compared to those using fossil fuel motorcycles, driven by savings on fuel and maintenance, as well as lower interest rates on electric boda bodas from MOGO. Many electric boda bodas operate on a battery-swapping model, enabling quick exchanges of depleted batteries for fully charged ones.
Kenya’s e-mobility sector is already experiencing rapid growth, and financing from the DFC is expected to further accelerate this expansion by ensuring that financing remains accessible and affordable for end-users.
MOGO plays a vital role in serving the boda boda community in Kenya, tailoring its services to meet the unique needs of customers often excluded from traditional banking options. “For electric mobility, this support is essential due to the higher upfront costs associated with EVs compared to fuel-powered bikes. To encourage adoption, MOGO offers lower interest rates and significantly reduces the required down payment for electric boda bodas, making ownership more attainable,” Leitis added.
The boda boda sector is a significant contributor to greenhouse gas emissions in Kenya, highlighting the need for a transition to e-mobility, which the government actively supports as part of its goal to achieve net zero emissions by 2050. With over 90% of Kenya’s electricity production coming from renewable sources, the electricity used to charge these vehicles is predominantly clean.
MOGO emphasizes the importance of electrifying the sector to align with Kenya’s environmental objectives. Before each EV sale, MOGO provides an onboarding process for customers, covering key differences between fuel-powered and electric bikes, proper handling, battery swapping procedures, and other essential information. Ensuring that new owners are well-informed about these differences is crucial, the firm noted.
MOGO Invests Sh1 Billion in Electric Boda Bodas and Tuk Tuks
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