BasiGo Secures Ksh 1.3B from DFC to Boost Electric Bus Production in Kenya

In a significant stride toward green industrialization in Africa, Kenyan electric bus manufacturer BasiGo has secured Ksh 1.3 billion ($10 million) from the United States International Development Finance Corporation (DFC). This funding will enable BasiGo to scale up the local assembly of its electric buses, marking a major milestone in Kenya’s journey toward sustainable public transportation.

The announcement was made during a recent tour of BasiGo’s dedicated electric bus assembly line located at the Kenya Vehicle Manufacturers (KVM) plant in Thika town, Kiambu County. Jit Bhattacharya, the Chief Executive Officer and Co-founder of BasiGo, expressed optimism about the impact of this new facility on the company’s production capacity. “We are currently producing five buses per month in partnership with Kenya Vehicle Manufacturers. Our goal is to increase that to 20 vehicles per month in the coming months, with the overall aim of delivering 1,000 electric buses here in Kenya over the next three years,” said Bhattacharya.

This boost in production is a crucial step for BasiGo, as the company has already received over 500 reservations for electric buses from matatu operators in Nairobi. The demand reflects a growing interest in sustainable transportation solutions within Kenya’s bustling public transport sector. Matatus, which are minibusses commonly used for public transportation in Kenya, are a significant part of the country’s transport infrastructure. The shift from diesel-powered to electric buses promises to reduce carbon emissions and operational costs for operators, while also contributing to the broader goal of reducing air pollution in urban areas.

The Ksh 1.3 billion loan facility from DFC is also expected to create significant employment opportunities within Kenya’s green manufacturing sector. Bhattacharya noted that at least 300 jobs are anticipated to be generated as a result of the new investment, which will support both production and the expansion of BasiGo’s operations.

The strategic investment aligns with the goals of the ongoing Strategic Trade and Investment Partnership (STIP) between Kenya and the United States, which is expected to be finalized by the end of this year. Speaking during the tour, US Ambassador to Kenya Meg Whitman highlighted the importance of BasiGo’s project in driving green industrialization in Africa. “The facility by the American government financing arm is key in driving green industrialization and creation of green jobs in Africa and Kenya,” Whitman said. She also emphasized that electric vehicles (EVs) are among the categories covered under STIP, and the success of this partnership could serve as a model for other African nations looking to develop their own green industries.

In addition to scaling up production, BasiGo plans to expand its innovative Pay-As-You-Drive model in Nairobi. This model allows bus operators to access BasiGo’s electric buses and charging infrastructure without the high upfront costs typically associated with purchasing new vehicles. Instead, operators pay for the use of the buses based on mileage, making the transition to electric buses more accessible for small and medium-sized transport businesses.

The DFC’s investment in BasiGo is part of a larger commitment by the United States to support sustainable development in Kenya. During President William Ruto’s visit to the US in May this year, DFC announced a Ksh 32.3 billion ($250 million) investment package for various projects across Kenya. Vibhuti Jain, Regional Managing Director for Africa at DFC, emphasized the broader impact of this investment, noting, “We have got over $1.2 billion invested in Kenya alone. And then we have projects like BasiGo that is also operating in Rwanda and we have another $1 billion of regional projects with significant Kenyan access.”

The infusion of capital into BasiGo is a clear indication of the growing confidence in Kenya’s potential as a hub for electric vehicle manufacturing in Africa. As the company continues to expand its production capabilities and introduce more electric buses to the market, it is poised to play a critical role in transforming the transportation landscape in Kenya and beyond. By providing a cleaner, more sustainable alternative to traditional diesel-powered buses, BasiGo is not only contributing to the fight against climate change but also setting a precedent for innovation in the African transportation sector.