Watu Credit Commits To Financing EVs In Kenya

Watu Credit, a local finance provider, has committed to finance the acquisition of more than 500,000 Electric Motorbikes by 2030.

Watu Credit’s commitment follows the release of the Electric Mobility Draft Policy on Wednesday by the Kenyan government, initiating efforts to promote the use of electric vehicles (EVs) in the country. Upon which Watu Credit has confirmed its corporate plans to invest more than $9.8million in accelerating efforts to transition from financing fossil-powered motorbikes to electric bikes progressively.

Developed by a task force led by Road and Transport Cabinet Secretary Kipchumba Murkomen, the policy aims to promote EV usage across all sectors, including roads, railways, air travel, and maritime transport.

The new policy outlines a plan to transition away from traditional gasoline and diesel vehicles towards a more sustainable future. “To achieve this, we are partnering with the private sector, international investors, and academic institutions to build the necessary infrastructure,” stated Murkomen. “To promote faster adoption of EVs, we have begun the process of assigning green-colored number plates to all-electric vehicles, including two-wheelers. Special plates will help raise awareness about EVs among the general public and encourage more people to consider switching to e-mobility. We are also setting up charging infrastructure at our Ministry headquarters,” he added.

With the release of the national e-mobility policy, Massawe stated the firm would support the national electric vehicle transition agenda by actively bridging the financing gap, which has been identified as a critical barrier to the acquisition of electric vehicles, including two and three-wheel motorbikes.

Watu Credit revealed they are collaborating with manufacturers like Arc Ride and GOGO Electric to develop electric bikes specifically designed for Kenyan roads and will also create a network of battery-swapping stations across the country, making charging electric motorbikes even more convenient.

“At Watu, we are committing to invest more than $9.8M by 2030 to finance the acquisition of thousands of electric-powered motorbikes in Kenya through our hire purchase option. For this to happen, we are working closely with several Manufacturers to deliver tropicalized units that can meet the local road and related operating conditions,” Massawe said.

Furthermore, the Government’s Bottom-Up Economic Transformation Agenda (BETA), outlined in the 2024 Budget Policy Statement, prioritizes electric mobility adoption to mitigate greenhouse gas emissions, offer cost-effective transportation, and nurture the large local and regional motorcycle market to build an electric and battery electric vehicle industry.

The Government has adopted e-mobility as a high-priority intervention to address the challenges of pollution, adverse health effects, and fuel costs, which raise operational and health costs across the board.