As part of its CSR (Corporate Social Responsibility) approach, the Nairobi-based commercial bank Family Bank in Kenya is teaming up with mobility start-up BasiGo to pre-finance the purchase of its electric buses.
In Kenya, Family Bank wants to support mobility start-up BasiGo in promoting sustainable transportation. The two Nairobi-based companies recently entered into a partnership to offer BasiGo’s electric bus customers a flexible financing option that includes covering 90% of the costs of their purchase transactions and a repayment term of up to 48 months.
“This partnership is critical and timely, consistent with our strategic initiatives to address environmental and social issues through sustainable financing as we seek to support climate action. And in this regard, electric vehicles offer a viable option to the market to help reduce carbon dioxide (CO2) emissions,” says Rebecca Mbithi, Family Bank’s managing director.
Democratizing the use of electric vehicles
The agreement is exclusively for BasiGo’s K6 electric buses, which sell for 5 million Kenyan shillings (about $42,000) each. As a reminder, this is a 25-seat vehicle with a range of 250 km and a recharging capacity of less than 4 hours.
“By allowing bus owners to get asset financing for a vehicle exactly in line with how they purchased diesel buses, it will change the game and increase its adoption,” says Jit Bhattacharya, BasiGo’s CEO.
Two weeks ago, the startup entered into a similar arrangement with the Commercial Bank of Kenya (KCB). The partnership will give customers of both companies access to integrated tracking gadgets that will already be installed in electric buses and financing for transportation-related insurance. Other financial groups operating in Kenya are expected to join BasiGo’s strategy to accelerate green mobility in Kenya in the near future.