Why Kenya’s boda-boda riders are going electric
By Our Staff Writer
When petrol prices in Kenya rose to new highs, riders of motorcycle taxis, known locally as boda bodas, were squeezed by rising fuel costs and limited access to credit. The country’s informal transport sector now offers a test case for how electric mobility and fintech‑driven ownership models can intersect.
Financing for informal riders
The sector is large. According to the National Transport and Safety Authority (NTSA), the number of registered motorcycles in Kenya’s commercial passenger segment exceeds a million. The sector plays a vital role in urban mobility.
Financing models tailored to informality are emerging. In March 2025, Roam, a Kenyan electric‑motorcycle company, and 4G Capital launched a ride‑to‑own programme aimed specifically at boda boda riders. Under the plan, riders pay a down payment of KSh 25,000 and then KSh 460 per day for 24 months to own the motorcycle and battery. For those opting for an extra battery, the deposit increases by KSh 5,000 and daily payment rises by KSh 207.
“Roam is committed to creating a future where mobility is affordable, sustainable, and inclusive. Our partnership with 4G Capital reflects our shared vision of empowering boda boda riders with solutions that drive economic growth and environmental stewardship,” said Stephen Kahuthia, Sales Field Manager at Roam.
Another player, Watu Credit, also known as Watu Africa, targets asset financing broadly, including for electric motorcycles. Its Kenya country manager, Erick Massawe, said in March 2024:
“At Watu, we are committing to invest more than Sh1.3 billion by 2030 to finance the acquisition of thousands of electric‑powered motorbikes in Kenya through our hire purchase option.”
According to Watu’s blog, the company offers financing for electric motorcycles from as low as KSh 450 per day in certain models.
These financing packages reflect an understanding of cash‑flow realities among informal riders, offering small daily or weekly repayments rather than large lump sums.
Operating cost advantages
Switching to electric can yield significant cost savings. According to Roam’s website, an 80‑kilometre range on one battery can cost as little as KSh 80 in charging. The same source reports that switching from internal‑combustion motorcycles to the Roam Air can save KSh 500 a day in operating costs.
These savings matter. Riders who previously spent large portions of their earnings on fuel and engine maintenance now have the potential to increase their net income while reducing downtime and upkeep.
Kenya’s electricity system is among Africa’s greenest in generation mix, meaning that shifting load to electric transport can help reduce dependence on imported fuel and lower foreign‑exchange risk.
“Diesel is not only expensive but also harmful to the environment. We need to go electric, not just on the railway system but also for vehicle mobility,” said Davis Chirchir, Cabinet Secretary for Energy and Petroleum.
Policy and ecosystem support
Kenya’s government recognises e‑mobility as a growing sector. The draft National Electric Mobility Policy outlines goals for two‑ and three‑wheelers and calls for supportive tax, import, and infrastructure measures.
“To achieve this, we are partnering with the private sector, international investors, and academic institutions to build the necessary infrastructure,” said Kipchumba Murkomen, then Cabinet Secretary for Roads and Transport.
Financing companies note that infrastructure, specifically battery‑swap and charging stations, remains a barrier to adoption. Watu Credit’s CFO, Steve Onyango, explained:
“EVs have high upfront costs compared to internal‑combustion vehicles. The biggest contributor to the reduced EV cost is the swap model. With fiscal incentives, locally assembled EVs would be cheaper.
Scaling e‑mobility involves more than the sale of motorcycles: it requires networks of support, local assembly, regulatory certainty, and targeted finance.
Rider realities and business model
For a rider operating in the cash economy, the ride‑to‑own model is significant. A typical model might require a daily payment comparable to, or slightly below, what a rider currently spends on fuel plus maintenance.
Under the Roam/4G plan, a rider paying KSh 460 per day for 24 months can end up owning the motorcycle and battery while spending less on fuel and maintenance than with a petrol bike. Riders also gain access to home‑charging or battery‑swap options via Roam Hubs. Roam’s website states that the Roam Air with dual batteries delivers up to 160 km of range and is designed for Kenyan conditions.
For financing firms, this sector represents a convergence of financial inclusion and mobility. The asset can serve as collateral via GPS and IoT tracking while the daily income stream supports repayment.
Scaling, challenges, and opportunity
Despite strong pilot programmes, challenges remain. Upfront cost remains higher than petrol motorcycles, although the gap is narrowing. Steve Onyango of Watu Credit noted that the cost differential has dropped from about twice as high to 1.2 times in some cases.
Battery‑swap and charging infrastructure is denser in Nairobi than in secondary towns and rural areas. Import duties on lithium‑ion batteries and components are a cost factor. Financing models must also address risk of default in the informal economy and plan for asset recovery or recycling.
Yet the opportunity is large. Watu Credit intends to finance thousands of e‑motorcycles, and Roam’s financing programme covers over 600 units in its first tranche.
For Kenya, moving large volumes of motorcycle taxis to electric power can reduce fuel imports, lower urban air pollution, and improve earnings for informal workers. The service economy and transport sectors in East Africa are key growth corridors.
Global relevance
While grounded in Kenya, the model has global resonance. In many emerging markets, two‑ and three‑wheel transport bypasses standard auto financing and operates in informality. Tailoring asset financing to these users, via daily payments, mobile money, and IoT tracking, offers a blueprint for a just transition to green mobility.
“By lowering financial barriers, the collaboration provides boda boda riders with greater economic opportunities. This partnership is about boosting incomes, saving on costs, and contributing to a greener future,” said Valentine Nasila, Head of Partnerships at 4G Capital.
Would you switch if it saved fuel?
For riders with modest daily earnings, switching to e‑mobility makes sense when upfront and operating costs align with cash flow and maintenance burdens. Kenya’s data shows that with proper finance, infrastructure, and policy alignment, the switch is viable.
Policymakers, financiers, and mobility firms must scale these models quickly to reach tens of thousands of riders and unlock the economic and environmental benefits.
