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TUKO.co.ke journalist Wycliffe Musalia brings over five years of experience in financial, business, and technology reporting, offering deep insights into Kenyan and global economic trends.
Boda boda operators in Kenya can now acquire cheaper electric motorcycles on credit.
This is after ride-hailing firm Bolt signed a partnership with M-KOPA- a fintech platform that provides digital financial services to underbanked consumers in Kenya and Africa.
The deal will give new and existing customers a chance to lease ROAM and Ampersand electric motorbikes at a discounted price, 15% cheaper than the current market rates.
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According to Bolt regional director of ride-hailing operations, Africa, and international markets Caroline Wanjihia, the partnership will see 1,000 electric motorbikes distributed by the end of 2024 and 5,000 in the next two years.
Wanjihia explained that the electric motorbikes will save drivers 40% off total ownership costs compared to petrol bikes, and up to 75% off operation costs.
"We are excited to introduce our electric bike fleet, in partnership with M-KOPA, as part of our ongoing efforts to support and empower our drivers. We are not only reducing our environmental footprint, but also aim to enhance driver earnings and improve overall economic stability within the communities that we serve," said Wanjihia.
Electric motorcycles in the country currently retail at around KSh 240,000 across the country.
However, with the partnership, drivers will be able to purchase an electric bike with a minimum deposit of KSh 10,000.
M-KOPA managing director David Damberger explained that the financial model the company uses will allow drivers to pay for the bikes while using.
"We created a financing model that customers pay daily while using the bike. The payment system we use locks and unlocks upon payment. What they will do now is pay a deposit of KSh 10,000 to KSh 15,000, which is way cheaper.
"We finance customers who want a repayment period of up to 12 months, 18 months and 24 months. The daily rate is slightly cheaper, and with this deal, it will be 15% cheaper," Damberger said.
The M-KOPA MD assured a customer-friendly return policy, where the customers are refunded their deposits in case they experience difficulties in repayment.
The strategic move marks a significant step in Bolt's commitment to enhance driver earnings through the reduction of operational costs in the market, as well as move towards eco-friendly urban mobility, aligning with global efforts to combat climate change.
In September 2023, The government announced plans to roll out electric motorcycles, commonly known as e-boda boda.
President William Ruto said the initiative aims to lower operational costs as it creates more job opportunities for Kenyans.
Industry stakeholders, including Uber Kenya, supported the move, launching electric boda boda to aid mobility operations.
Uber Head of Communications, East & West Africa Lorraine Onduru said the move will help cut passenger and driver costs.
Proofreading by Asher Omondi, current affairs journalist and copy editor at TUKO.co.ke.
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Bolt and M-KOPA said the electric motorcycles will be 15% cheaper than the current market prices.
Kenya's Boda Boda Operators to Acquire Cheaper Electric Motorcycles
Bolt and M-KOPA Launch 5,000 Electric Motorcycles in Kenya