In Kenya, Roam, an electric mobility company, has teamed up with Mogo, a finance startup, to get more people riding electric motorbikes.
Now, folks eyeing Roam’s electric bikes can get a financing plan through Mogo. This plan will help them cut costs and bump up their daily earnings by 30%.
This collaboration follows Roam’s recent opening of its first electric bike shop in Nairobi, thanks to a partnership with Ridewell. Mogo has stepped up as Roam’s top supporter, buying electric bikes for all its employees.
A report says electric bikes are catching on in Sub-Saharan Africa, but startups need more support to thrive.
This partnership is a big deal for expanding transportation in Kenya and across Africa. By 2027, Africa’s motorcycle market could hit $5 billion. In Kenya, motorcycles already make up about 3.4% of the GDP, with the government raking in KSh 60 billion a year in fuel taxes.
Mikael Gånge, Roam’s CCO and Co-founder, thinks this move will attract bodaboda riders (Kenya’s taxi bikers) who want to ditch petrol bikes due to rising fuel prices. With Mogo’s financing smarts, Roam can offer money-saving options.
Rauls Leitis, from Mogo, says Roam’s bikes can charge at home or at Roam hubs, hinting that electric bikes might soon outpace petrol ones.
To make the switch easier, the Kenyan government axed five taxes on electric bike manufacturing, including the 16% VAT. Plus, they aim to get 200,000 electric bikes on Kenyan streets by 2024, with tax breaks on parts and batteries.
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