KCB and United Nations Institute for Training and Research (UNITAR) have rolled out an ambitious e-mobility financing initiative that will see boda boda operators acquire electric motorbikes.
According to KCB Group CEO Paul Russo, the deal with UNITAR will provide 100 per cent financing to 100,000 boda boda riders to acquire the e-motorbikes and pay within one year.
The programme initially targets riders from Nairobi, Kajiado and Machakos counties before spreading countrywide and is expected to create over 150,000 new green jobs in the sector.
Russo revealed that the bank will avail green affordable loans to the riders to buy electric motorbikes and tuktuks at 13 per cent interest via various local sellers of the e-motorbikes.
“We are targeting about 100,000. If I can be able to do that in the first 12 months, that would be amazing, but we need to do it across multiple locations so that it acts as a change agent,” said Russo in an interview with Swala Nyeti.
Read More
Russo added, “When we started this off the pricing (of one e-motorbike) was about Sh200,000, but as the shilling depreciated it started getting to Sh350,000. You address that by making production in this country, and that is what we want to try and do.”
Russo revealed that the Group targets to work with other partners to transform 25 per cent of its total loan portfolio to green investments by 2025, as part of its Net Zero ambition.
“The boda-boda riders play a key role in reducing carbon emissions in the environment, which is part of our long-term plans to conserve the environment,” the KCB CEO added.
Speaking at the launch, Roads and Transport CS Kipchumba Murkomen pledged to form a task force in the next few days to address challenges to a faster local e-motorbikes rollout.
Murkomen says the initiative fits into the government’s plans to roll out an electric vehicle public transport system to reduce transport costs and reduce carbon emissions in Kenya.
“There is a need to reduce carbon emissions by 32 per cent by 2030. In 2022, emissions in the transport sector were estimated to be 1.26 million tonnes of carbon dioxide. The adoption of electric motorbikes by boda-boda riders will help the country to achieve this target given that 1CE motorcycle emits more carbon than two saloon cars,” he noted.
KCB and UNITAR say the programme supports KCB Group’s pledge to boost sustainable finance, subsequently hastening Kenya’s transition to a low-carbon resilient economy.
On her part, KCB Foundation Chief of Party Caroline Wanjeri Kihara said the initiative by the foundation, UNITAR and Mastercard targets to enhance the local electric motorcycle assembly capacity to make the motorcycles cheaper while creating green jobs for the youth and women while drastically reducing carbon emission in Kenya.
"The approach we have taken is to deal with groups- the boda boda Sacco associations because they already have their issues which they understand together, especially as we want to increase the transition into electric motorbikes. We will also be working with a lot of women groups and especially as we go rural," said Wanjeri.
60 boda-boda riders from various parts of Nairobi County were the first to receive the electric boda-bodas on Wednesday after receiving comprehensive training on the electric bikes, with each bike costing Sh350,000 even as KCB Foundation moots availing the product to individual customers.
-1720115321.jpg)
