KENYA – Family Bank in Kenya, a commercial bank, is teaming up with mobility start-up BasiGo, to pre-finance the purchase of its electric buses.
Family Bank wants to support mobility start-up BasiGo in promoting sustainable transportation, as part of its CSR (Corporate Social Responsibility) approach.
The partnership will 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,” said Rebecca Mbithi, Family Bank’s managing director.
“And in this regard, electric vehicles offer a viable option to the market to help reduce carbon dioxide (CO2) emissions.”
The agreement is exclusively for BasiGo’s K6 electric buses, which sell for KSh5 million (US$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,” said 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.
KCB SAHL Banking customers, who under the Shariah-compliant banking model, can also purchase the electric buses from BasiGo at affordable rates.
The partnership will see customers enjoy up to 90% funding with an extended repayment period of 36 months.
In addition, customers will have access to embedded tracking, and fleet management gadgets already installed on the electric bus plus insurance financing. They will also get battery charging, service, and maintenance, provided by BasiGo.
Other financial groups operating in Kenya are expected to join BasiGo’s strategy to accelerate green mobility in Kenya in the near future.
Liked this article? Subscribe to DealStreet Africa News, our regular email newsletter with the latest news, deals, and insights from Africa’s business, economy, and more. SUBSCRIBE HERE