Mogo Secures Ksh 1.3 Billion from U.S. International Development Finance Corporation to Expand Electric Vehicle Financing Portfolio in Kenya
By Shadrack Nyakoe
Mogo, a leading asset financier in Kenya, has secured a Ksh1.3 billion (USD 10 million) loan facility from the U.S. International Development Finance Corporation (DFC) to expand its electric vehicle financing portfolio.
This funding aims to increase sustainable mobility options for self-employed boda boda operators and SMEs in Kenya.
The seven-year loan follows Mogo’s recent opening of its first-ever electric motorbike shop in Kenya, aimed at providing affordable e-bikes to boda boda operators and promoting eco-friendly transportation.
“The financing aligns with Mogo’s ESG strategy as we recognize the future of mobility is electric,” said Mogo Country Manager Domas Mineikis. Kenya is a key market leader in this space, and we’re keen on rolling out to SMEs and self-employed customers nationwide to help upscale their livelihoods,” he added.
Mogo Kenya, a subsidiary of the global multi-brand fintech company Eleving Group, focuses on financing motorcycles, e-bodas, tuk-tuks, and cars, essential tools for mobility and income generation.
“DFC is strengthening its commitments to Kenya’s development, with investments into e-mobility and energy, among other sectors,” stated DFC CEO Scott Nathan. “The U.S. and Kenya share strong ties, including a robust relationship with the private sector.”
With over 120,000 customers financed for mobility assets in the last five years, Mogo noted this has been a pivotal year in the sector with rapidly increasing uptake.
“In the first quarter of 2024, we financed as many e-bikes as we did in the whole of last year,” noted Modestas Sudnius, CEO of Eleving Group. “We are confident in the success of this cooperation.”
Kenya has set a goal to reduce greenhouse gas emissions by 32% within six years, with zero-emission mobility being crucial.
The boda boda sector supports many low-income micro-entrepreneurs who typically lack access to vehicle financing.
This investment by DFC and Mogo aims to provide essential zero-emission vehicle financing, benefiting both individuals and businesses.
Studies indicate e-bikes can reduce operating costs by 30-35% due to fuel and maintenance savings, with electric bikes requiring significantly less upkeep compared to petrol bikes.
DFC, a U.S. government agency, invests in development projects in lower and middle-income countries, addressing pressing challenges through collaborations with the private sector.
DFC’s investments span various sectors, promoting job creation and ensuring high standards for the environment, human rights, and worker rights.