Mogo Kenya Announces E-Bike Financing for MSMEs

Boda boda riders and other consumers can purchase electric motorcycles with financing from the financial services company Mogo Kenya.

According to the asset lender, offering cheaper borrowing rates will hasten the country’s adoption of clean mobility.

“Electric bikes are rapidly becoming the future of rides globally, with many businesses moving to a greener and more economical solution. In financing both the businesses and customers alike, we’re aiming to create a sustainable business model for MSMEs in Kenya,” said Mogo Head of Boda Business, Mikhail Vydrin.

More riders are switching to e-motorcycles since their batteries never need to be maintained due to high fuel prices, skyrocketing maintenance expenses, and the ecologically destructive nature of petrol bikes.

Boda boda users will be able to save up to Sh100,000 annually and Sh400 on fuel and daily services by switching to electric bikes.

As a result, they will have more money available to spend on their family, food, and education.

For instance, an electric bike requires a minimum down payment of Sh15,000 whereas the most popular 150-cc petrol bikes require Sh35,000.

Riders of electric bikes will pay only Sh380 per day instead of Sh450 per day for a petrol bike, which is 15% less expensive owing to lower interest rates.

Furthermore, riders do not need to return home to charge the battery.

Riders only need to find the nearest battery-swapping site when their battery is running low so they can exchange it for a fully charged one.

The necessary infrastructure has already been developed by electric bike manufacturers.

For example, Arc Ride currently has 42 stations with plans to add more, whereas Amperstand has 10 exchanging stations.

“The extended battery life makes longer trips possible, giving drivers additional mileage each day.  We expect the availing of this financing to make it more affordable for individuals to purchase and maintain electric motorcycles, helping scale their adoption in Kenya,” Vydrin added.