In a partnership between KCB Bank Kenya and BasiGo Ltd, an e-mobility startup and financing firm delivering electric bus services to Sub-Saharan Africa, KCB customers in the Public Service Vehicle industry will now have access to flexible financing alternatives.
Customers will benefit from up to 90% finance with a 36-month repayment schedule as part of the agreement, which will help them cut greenhouse gas emissions and improve their ability to respond to climate change through adaptation and mitigation measures.
Customers will also have access to embedded tracking and fleet management devices that are already installed on the electric bus, as well as insurance financing. BasiGo will also provide battery charging, service, and maintenance.
“The key to getting electric buses on the road in Kenya is to make them affordable to PSV owners. The partnership we have signed today with KCB Bank is game-changing. It will allow bus owners to secure asset financing for an electric bus exactly in line with how they have been purchasing diesel buses.,” said Jit Bhattacharya, CEO and Co-Founder at BasiGo. “With KCB’s pioneering support for this technology and BasiGo’s Pay-As-You-Drive financing, we have made electric buses more affordable and more convenient for owners to purchase and operate than a diesel bus.”
BasiGo’s electric buses can be purchased on a Sale/Operating lease basis. The bus is offered for purchase under this model for Kshs. 5,000,000, with BasiGo retaining ownership of the vehicle’s battery. Following that, the battery is leased to the PSV operator via a Pay-As-You-Drive (PAYD) subscription. BasiGo presently offers Pay-As-You-Drive subscriptions for Ksh 20 per kilometer traveled. By ensuring battery performance and providing all charging and maintenance for the bus throughout its life, BasiGo mitigates risks to PSV operators.
KCB Bank Director of Corporate Banking Esther Waititu stated during the event that the arrangement is in accordance with the Bank’s mission to leverage partnerships that seek to give value to its clients.
“Entrenching sustainability in our operations means that we always consider our economic, social and environmental impact before we make any decision on partnerships and collaborations. We are delighted to partner with BasiGo as this reflects our commitment to supporting key customers to derive value from their long-standing loyalty,” Waititu said.
Customers of KCB SAHL Banking will also be provided for, since they will be able to acquire the electric buses from BasiGo at inexpensive rates thanks to the Shariah-compliant banking model.
BasiGo has recently completed its trial program with Citi Hoppa and East Shuttle. Since March 2022, the pilot buses have driven over 90,000 kilometers and carried over 112,000 people in Nairobi. BasiGo has already received over 100 bookings for its K6 Electric vehicle and plans to deliver new buses to SACCOs on the reservation list in early 2023.