KCB customers in the Public Service Vehicle industry will now be able to access flexible financing options in a deal between KCB Bank Kenya and BasiGo Ltd, an e-mobility startup and financing company supplying electric bus services to sub-Saharan Africa.
The partnership will see customers access up to 90 percent funding with an extended repayment period of 36 months.
The initiative is part of supporting investors in PSV segment to reduce their greenhouse emissions and enhance their ability to respond to climate change through adaptation and mitigation measures.
In addition, customers will have the privilege to access embedded tracking, and fleet management gadgets already installed on the electric and insurance financing. Further, battery charging, and regular maintenance service for the fleer shall be provided by BasiGo.
“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 are available to purchase on a blended sale/operating lease model. Under this model, the bus is available to purchase from Kes5 million, with BasiGo retaining ownership of the battery within the bus.
The battery is subsequently leased to the PSV operator via the Pay-As-You-Drive (PAYD) subscription. BasiGo currently offers Pay-As-You-Drive subscriptions at a price of Kes20 per kilometer driven through the subscription, BasiGo mitigates the risks to PSV operators by guaranteeing battery performance and providing all charging and maintenance for the bus throughout its life.
KCB Bank Director of Corporate Banking Esther Waititu noted that the arrangement is in line with the lender’s vision to leverage partnerships that seek to provide value to its customers.
“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,” Ms Waititu said.
Also catered for are KCB SAHL Banking customers who under the Shariah-compliant banking model, will be able to purchase the electric buses from BasiGo at affordable rates.
BasiGo has recently concluded its pilot program in collaboration with Citi Hoppa and East Shuttle PSV operators. The pilot buses have been in operation in Nairobi since March 2022 and have driven over 90,000 km and carried over 112,000 passengers.
BasiGo has already received over 100 reservations for its K6 Electric bus and is set to deliver new buses in early 2023 to SACCO’s on the reservation list.
The partnership comes at a time when institutions are being called upon to embrace sustainable practices by adopting the UN Sustainable Development Goals (SDGs) as a guide to assist in the attainment of reduced global net human-caused emissions of carbon dioxide by about 45 percent by 2030.