NCBA Bank has launched a new Ksh2 Billion loan facility targeting buyers of electric vehicles (EVs) in Kenya. The move comes amid growing interest and investment in EVs in Kenya.
The offer covers both electric private and public service vehicles (PSVs). The new facility is aligned with NCBA’s Green Finance strategy.
“The five-year deal will see customers enjoy asset financing of up to 80 percent of the total cost of any personal or public service vehicle that they identify,” a statement from the bank disclosed.
It is offering friendlier terms for customers who take up the financing offer in the first three months.
“In addition, NCBA will give 10 percent cent interest rate on reducing balance offer for electric vehicle loan applications received within the first 90 days,” NCBA noted.
NCBA Asset Finance Director Lennox Mugambi highlighted the increased demand for EV’s in Kenya as the bank announced the new facility.
“Over a couple of months, we have received growing interest and requests from our customers who are keen to purchase electric vehicles. We see this Ksh2bn investment as an opportunity to support the government establish a clean, efficient, and safe transport system that will safeguard an eco-friendly future,” he sated.
It is currently estimated that there are about 350 electric vehicles registered in Kenya, out of a total of 3.5 million registered vehicles. More Kenyans are going for electric vehicles and motorcycles to avoid high fuel costs and also in a bid to combat climate change. Companies offering conversion of various vehicles to electric vehicles are also witnessing an uptick in business.
A number of companies are also spotting opportunity in Kenya’s e-mobility market driving increased investment. EV start-up BasiGo launched a Ksh5 million passenger electric bus in March. Logistics and transportation startups are adding electric vehicles including 3-wheelers to their fleets.
State-owned utility Kenya Power intends to pilot a network of charging stations for electric vehicles in Nairobi and Nakuru for 6 months beginning September. The trial run will offer KPLC insight into the feasibility of rolling out charging stations across the country. Power Generator KenGen is also looking to set up charging stations.