GreenMax Capital Group has collaborated with Moja EV to initiate a pilot program for financing electric vehicles (EVs) aimed at Uber drivers.
Backed by concessional funding from the Dutch non-profit organization IKEA Foundation, this initiative seeks to enhance the affordability and accessibility of EV ownership while reducing carbon emissions.
Clifford Aaron, CEO of GreenMax, stated that the pilot will initially support 20 drivers, with the company assuming the first-loss risk to attract additional financiers to the EV sector.
“We are taking on 20% of the risk to ensure that the financing package is both bankable and affordable,” Aaron remarked during the launch event in Nairobi.
Drivers will lease the EVs at significantly lower daily rates, ultimately transitioning to full ownership. Moja EV will manage repossessions in cases of long-term defaults but assures flexibility for drivers encountering temporary challenges such as illness or family emergencies.
Moja EV is contributing 80% of the capital, while GreenMax is providing the remaining 20%, which includes assuming the initial default risk to promote inclusive lending.
Wang Ai Ping, CEO of Moja EV, indicated that the pilot serves as a foundation for a larger $150 million rollout aimed at electric Matatus and buses, set to commence in September.
“This model demonstrates that EV financing is effective, particularly for drivers in the informal sector,” Ping stated.
He further noted that previous EV rollouts faced limitations due to short battery ranges, but new vehicles now offer over 300km per charge, allowing drivers to complete full shifts.
“We have deployed 100 EVs and gathered valuable data to expand this model nationwide, including for women and youth,” he added.
However, Ping expressed concerns regarding the high import taxes on EVs, which can reach up to 90%, nearly doubling the local cost of vehicles. He cautioned that the company may consider relocating manufacturing to Tanzania or Rwanda if the policy environment does not improve.
“We were promised tax waivers for the first 100,000 EVs, but we are currently facing 75% in duties,”
Ken Shadrack Obuya, the Chair of the Drive Electric Group SACCO, expressed his support for the initiative, describing it as a transformative development.
“With Ksh 1,500 worth of electricity, one can travel to Nakuru and return. It is more economical and environmentally friendly,” he stated.
The stakeholders called on the government to amend electric vehicle policies, simplify customs processes, and enhance charging infrastructure to facilitate Kenya’s transition to clean and affordable transportation.
