Kenya’s leading electric bus manufacturer, BasiGo, has secured a significant financial boost of Ksh 1.3 billion ($10 million) from the United States International Development Finance Corporation (DFC). This investment is set to enhance the local assembly of electric buses and further establish Kenya as a hub for green transportation solutions in Africa.
Enhancing Production Capacity
During a tour of the dedicated electric bus assembly line at the Kenya Vehicle Manufacturers (KVM) plant in Thika town, Kiambu County, Jit Bhattacharya, BasiGo’s Chief Executive Officer and Co-founder, expressed his optimism about the company’s future. “We are currently producing in partnership with Kenya Vehicle Manufacturers five buses per month. Our goal is to increase this to 20 vehicles per month in the coming months, with the overall aim of delivering 1,000 electric buses in Kenya over the next three years,” Bhattacharya stated. This expansion is poised to significantly enhance the firm’s production capabilities, addressing the growing demand for electric buses in the country.
Meeting the Needs of Nairobi Matatu Owners
The funding will also enable BasiGo to meet its commitments to Nairobi’s matatu owners, who have already made over 500 reservations for the company’s electric buses. This high level of interest underscores the appetite for sustainable transportation solutions in the region. Bhattacharya highlighted the company’s dedication to fulfilling these orders, stating, “Right now, we are very focused on delivering for our Kenyan customers. Our first focus for this manufacturing line is delivering to those customers.”
Creating Green Jobs
The investment is not only expected to bolster the production of electric buses but also to create significant employment opportunities. BasiGo anticipates the creation of at least 300 green manufacturing jobs as a direct result of this new investment. This move aligns with global trends towards sustainability and job creation in the renewable energy sector.
US Support for Green Industrialization
US Ambassador to Kenya, Meg Whitman, also attended the tour of the assembly line, praising the facility and the broader support from the US government. “The facility by the American government’s financing arm is key in driving green industrialization and creating green jobs in Africa and Kenya,” Whitman noted. The DFC’s investment in BasiGo is part of a larger Ksh 32.3 billion ($250 million) funding announced during President Ruto’s US tour in May this year, highlighting the strong ties between the two nations.
Strategic Trade and Investment Partnership (STIP)
The investment comes at a crucial time as Kenya and the United States aim to finalize the Strategic Trade and Investment Partnership (STIP) this year. Ambassador Whitman elaborated on the significance of the STIP, saying, “The STIP has been under negotiation for two years, and the two parties target to conclude it by the end of this year. EVs are one of the categories covered, and everyone is delighted with EV manufacturing in Kenya. The idea of STIP is that it can be a model for other countries.”
Expanding the Pay-As-You-Drive Model
BasiGo plans to utilize the new facility to expand its innovative Pay-As-You-Drive model in Nairobi. This model offers operators continuous access to charging infrastructure, making it a convenient and cost-effective solution for electric vehicle adoption.
Regional Impact
Vibhuti Jain, Regional Managing Director for Africa at DFC, highlighted the broader impact of the investment, noting, “We have got over $1.2 billion invested in Kenya alone, and then we have projects like BasiGo operating in Rwanda. We have another $1 billion in regional projects with significant Kenyan access.”
The partnership between BasiGo and DFC represents a significant milestone in the journey towards sustainable transportation in Kenya and the broader African region. As the country continues to embrace green technology, initiatives like these will be pivotal in shaping the future of mobility in Africa.
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