Lexo Energy secures US$14m loan from IFC to install electric vehicle charging stations in Kenya and Tanzania

KENYA – Lexo Energy, a leading fuel retailer in East Africa, plans to gradually install electric vehicle charging stations in Kenya and Tanzania after a US$14 million  loan from the International Finance Corporation (IFC).

The energy company, which was established in Kenya in 2017, is involved in the distribution of diesel and petrol through its network of 33 retail fuel stations in Kenya and 7 stations in Tanzania.

Lexo leases fuel stations from the owners and operates the stations under its brand.

The company plans to use the IFC loan to expand its network of fuel stations in Kenya and Tanzania.

“Lexo is aiming at a network of 200 fuel stations in 7 years, with an annual growth of 10-12 stations per country,” IFC said on its website.

The International Finance Corporation, which is the private sector arm of the World Bank, supports companies in developing countries through loans, equity investments and advisory services.

The financial institution said it will offer Lexo energy technical support for greening initiatives; and environmental, health and social best practices, in addition to the financial support.

“Lexo is aiming at a network of 200 fuel stations in 7 years, with an annual growth of 10-12 stations per country”

International Finance Corporation

In March 2021, electricity distributor, Kenya Power, has announced plans to install charging points for electric cars along major highways, parking lots and malls, countrywide.

The move seeks to bring new revenue streams and boost demand for cars that don’t use petrol and diesel.

Although the company did not give timelines for the project, Kenya power managing director Bernard Ngugi said they will begin with Nairobi.

The government of Kenya aims to increase the uptake of electric vehicles in the country in the next five years with a goal to have 5% of all registered vehicles in Kenya being electric vehicles by 2025.

Already, Nopea Ride, a taxi-hailing service that only uses electric cars, is scaling up operations in Kenya. The firm has so far installed charging stations in three locations; the Two Rivers Mall, the Hub Karen, and Thika Road Mall.

To help encourage electric vehicles’ adoption, Kenya reduced excise duty on the cars from 20% to 10%.

In August last year, power generator KenGen also announced plans to rollout electric car charging facilities.

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