M-Kopa to invest Ksh.1.3 billion in electric motorcycle deal with Bolt

In an effort to incentivise boda boda riders to increase their uptake of electric-powered motorcycles, the ride-hailing platform Bolt is set to pay Ksh.50,000, an equivalent of 20 per cent of their acquisition cost.

In a deal that will see boda boda riders pay between Ksh.10,000 and Ksh.15,000 in the acquisition of the e-motorcycles worth over Ksh.200,000. The remainder of the cost will be covered by M-Kopa.

The deal targets 1,000 boda boda riders across the country by the end of the year even as they seek to scale up to 5,000 riders in the next three years.

“This will be over ten million dollars (Ksh.1.3B) investment to make sure that we are financing these bikes and which is purchasing these bikes from roam and ampersand financing them for customers some in 12 months some 18 months,” said David Damberger, Managing Director of M-Kopa mobility.

Linda Ndung’u, the country manager for Bolt added: “When we do our unit economics they will be saving up to 40 per cent every day  and when we look at the 60  that is inclusive of the repayment cost inclusive of the charging, maintenance all those things so every day 40 per cent cheaper.”

Although the boda boda riders get the equipment at a subsidised rate they will need to pay an average of  480 shillings and 600 shillings per day based on the brand they opt for, to offset their acquisition within 2 years.

To support such investment in the country, Kenya Power and Lighting Company is also set to invest 258 million in the next three years. 

According to Kenya Power, the investment will include the cost of setting up charging stations at various locations across the country and the purchase of electric vehicles and motorbikes to aid company operations.

KPLC has also launched an electric vehicle (EV) charging station located at Stima Plaza, which has been set up at a cost of Ksh.6.5 million and will comprise two chargers; a 50 KW DC (1-hour charging time) and a 22 KW AC (2-hour charging time) charger.