BUSINESS

Electric Motorbikes Set To Turn Around Boda Boda Business

Share
Electric motorbikes
KCB CEO Paul Russo said move is part of the bank's efforts to support poverty alleviation and job creation in line with the sustainable development needs. [ Photo / Courtesy ]
Share

KCB Foundation and the United Nations Institute for Training and Research (UNITAR) have partnered to promote the use of electric motorbikes by boda boda riders in Kenya. This is an effort towards accelerating the transition to a low-carbon resilient economy and enable the transition of 25% of the total loan portfolio to green investments by 2025, as part of the KCB Net Zero ambition.

See >> Inside Kenya’s Boda Boda Millionaire Industry

The programme involves a user acceptance test, the establishment of a lending scheme for boda boda riders, and providing training through 2Jiajiri, SACCOs, associations, motorcycle dealers, and various government departments to support the transition to clean energy.

The pilot phase will kick off in Nairobi, Kajiado and Machakos counties, and will see 150 motorcycle riders onboarded into the programme at a cost of approximately Ksh38.7 million funded by both KCB Foundation and UNITAR.

Speaking at the event, KCB CEO Paul Russo noted that the partnership with UNITAR is part of the multi-pronged approach by the bank to work with like-minded partners to support poverty alleviation and job creation efforts in line with the sustainable development needs.

“Through the e-Mobility programme with UNITAR, we seek to make it possible for players in the transport sector to acquire electric motorbikes at an affordable rate and earn a living. At the same time, the boda boda riders will be playing a key role in supporting low carbon emissions in the environment. This is a cause we are ready and willing to support as part of our long-term plans to conserve the environment,” Mr Russo said.

Mr Pius Masinde, the Conduct and Discipline Officer at the United Nations said this programme will promote electric mobility and ultimately contribute to the achievement of several Sustainable Development Goals (SDGs), including ending poverty, gender equality, affordable and clean energy, decent work and economic growth as well as climate action and peace, justice and strong institutions.

According to the National Transport and Safety Authority (NTSA), there were nearly 1.9 million registered motorcycles in Kenya as of 2018. In 2021, NTSA registered 285,203 motorcycles compared to the 186,434 registered in 2017.

The sub-sector provides more than one million direct jobs for riders who earn Ksh1,000 per day. This translates to about Ksh60 billion yearly in government revenue through taxes, levies and other charges.

See Also >> Posta Kenya Launches It’s Own Version Of M-Pesa

Written by
KALU MENGO -

Kalu Mengo is a Senior Reporter With Business Today. Email: [email protected]

Leave a comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Follow Us

Related Articles
KQ and China Eastern
BUSINESS

KQ Codeshare Agreement With China Eastern Airlines Opens New Opportunities

 Kenya Airways (KQ) and China Eastern Airlines (MU) have renewed their codeshare...

Yaga preloved secondhand fashion buying and selling app
BUSINESSTECHNOLOGY

Yaga: South Africa App for Buying and Selling Second-Hand Fashion Launches Kenya

Yaga, South Africa's leading app for buying and selling preloved, or second-hand,...

green terminal - Mombasa Container Terminal
BUSINESS

Mombasa Container Terminal Sets New Standard With Kenya’s First Green Label

The Mombasa Container Terminal (MCT) has officially obtained the Green Terminal label...

rebecca Mbithi - NCBA Bank Board
BUSINESSLEADERSHIP

Former Family Bank CEO Rebecca Mbithi Joins NCBA Bank Kenya Board

The Board of Directors of NCBA Bank Kenya PLC has announced the...