Mogo Gets $10M to Boost Electric Vehicle Loans in Kenya
The loan aims to provide essential zero-emission vehicle financing to individuals and businesses in Kenya's transportation sector.
NAIROBI, Kenya— Asset financier Mogo has secured a $10 million loan from the U.S. International Development Finance Corporation to expand its electric vehicle financing portfolio in Kenya, the company announced Wednesday, writes Winston Mwale.
The seven-year loan facility will allow Mogo to provide more affordable loans for Kenyans to acquire electric motorcycles, tuk-tuks and cars in line with the country's goal of transitioning to zero-emission mobility.
"The financing is in sync with Mogo's strategy as we appreciate the future of mobility is electric," said Domas Mineikis, Mogo's country manager in Kenya.
"We're keen on rolling out to SMEs and self-employed customers all across the country to help them upscale their livelihoods."
Mogo, a subsidiary of the Eleving Group fintech company, said the first quarter of 2024 saw rapidly increasing uptake of electric vehicles, with as many e-bikes financed as in all of last year.
"We are proud that Eleving Group and Mogo Kenya, in partnership with DFC, have the opportunity to accelerate this positive shift towards more sustainable commuting," said Modestas Sudnius, Eleving Group's CEO.
DFC CEO Scott Nathan said the investment in e-mobility aligns with the U.S. development agency's commitments in Kenya, where transport accounts for over 10% of greenhouse gas emissions.
The loan aims to provide essential zero-emission vehicle financing to individuals and businesses in Kenya's transportation sector, which supports many low-income micro-entrepreneurs typically lacking access to such products.
Studies show electric motorbikes can reduce operating costs for boda boda (motorcycle taxi) drivers by 30-35% due to fuel and maintenance savings compared to gasoline bikes.