Family Bank and BasiGo have entered into a partnership which will see Kenyans in the Public Service Vehicle (PSV) industry purchase units with up to 90 percent financing.
The deal comes with an extended loan repayment period of not more than 48 months for the purchase of electric matatus.
The move is keen to see a reduction in greenhouse emissions and support the development of a sustainable public transport system.
“Through this partnership, we will be offering financing for a 25-seater dubbed ‘BYD K6 BUS’ that requires far less maintenance than diesel-powered buses with zero transmission of gases,” said Family Bank Chief Executive Officer Rebecca Mbithi.
The K6 Electric Bus from BasiGo goes for Ksh.5,000,000, plus a subscription fee of Ksh.20 per kilometre – Pay-As-You-Drive (PAYD).
Through PAYD, BasiGo mitigates the risks to PSV operators by guaranteeing battery performance and providing all charging and maintenance for the bus throughout its life. The battery will be leased to the PSV operator via the PAYD battery subscription
“The partnership we have signed today with Family Bank goes a long way in achieving this as they are a chosen banking partner for many PSV owners,” said Jit Bhattacharya, CEO and Co-Founder at BasiGo.
Bhattacharya also said that “with the continued 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.”
Kenya is among African countries in the middle of a transition to electric mobility.
E-mobility is viable in both the long and short term and has allowed bus owners to secure asset financing for an electric bus exactly in line with how they have been purchasing diesel buses will be the game-changer that grows its adoption.
The buses, once charged, will have a driving range of 250 kilometres before the next charge at BasiGo charging depots that will be strategically located along the matatu plying routes. This allows transport providers to complete a full day’s operation.
Family bank initiative is part of a growing list of banks seeking to provide financing for PSV owners who are looking to purchase green vehicles.
It comes at a time when the Nairobi City County Government is seeking to float a green bond to build a mass transit system and supports the long-term goal of attaining 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 per cent by 2030.