Aiming to Deploy 1000 Electric Buses on Kenyan Roads by 2027: Can BasiGo Succeed?
BasiGo, a Nairobi-based electric mobility startup, is driving the charge towards a greener future in Kenya. The company has assembled 53 buses locally and has another 27 in production at its new facility in Thika, 50km north-east of Nairobi. This facility, built in partnership with Kenya Vehicle Manufacturers, is the country's first dedicated electric bus assembly line.
BasiGo's latest model, the KL-9, is designed specifically for Nairobi's congested commuter routes. Equipped with a 300kWh battery, the KL-9 can be charged in just two hours, making it an efficient solution for the city's daily transportation needs.
The electric bus sector in Kenya holds significant potential for transformation, given the country's reliance on informal "matatus." However, uptake has been slow due to high capital costs, a lack of charging infrastructure, and an uncertain policy framework. To address these challenges, BasiGo is developing a leasing model to help operators overcome cost barriers, with the company providing maintenance and charging.
BasiGo has raised a total of $63.1 million from investors, with its most recent financing being a $24m Series A led by Africa50. The investment for this facility exceeds KES3.5 billion ($27 million).
The company's ambition is to deploy 1,000 battery-powered buses on Kenyan roads by 2027. Major operators like Citihoppa, Ummoinner, and Rembo Shuttles have already incorporated the buses into their fleets.
Kenya's reliance on fuel imports is significant. The country spends over $5 billion annually on fuel imports, equivalent to about 15% of its economy. With electric buses, this dependency could be reduced, contributing to a more sustainable and self-reliant transportation sector.
The Energy and Petroleum Regulatory Authority (EPRA) states that road transport accounts for more than 40% of Kenya's total energy consumption. As such, the sector is the fastest-growing source of emissions in Kenya. By transitioning to electric buses, Kenya can take a significant step towards reducing its carbon footprint.
Unlike Rwanda, Kenya has not removed import duties on electric vehicles. However, with BasiGo's local production and plans to export buses to other African markets, including Nigeria and Tanzania, the electric bus revolution is poised to spread across the continent.
Kenya Power, the state utility, claims it has sufficient off-peak capacity to charge thousands of electric vehicles. With BasiGo's leasing model and the growing number of electric buses on Kenyan roads, the country is well on its way to a greener, more sustainable future.
As of the current count, there are approximately 9,000 registered electric vehicles (EVs) in Kenya, according to the National Transport and Safety Authority. With BasiGo's efforts and the potential for growth in this sector, this number is expected to rise significantly in the coming years.
While South Africa, the continent's largest EV market, has more than 10,000 electric vehicles, Kenya lags behind. However, with BasiGo leading the charge, Kenya is set to join the ranks of countries embracing electric mobility.
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