KCB Bank Kenya has partnered with BasiGo Ltd to provide customers with access to financing to buy electric buses.
KCB customers will be able to access financing to buy BasiGo electric buses. KCB SAHL Banking customers, who are under the Shariah-compliant banking model, will also be able to purchase 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.
“The key to getting electric buses on the road in Kenya is to make them affordable to PSV owners. The partnership we have signed today with KCB Bank is game-changing. It will allow bus owners to secure asset financing for an electric bus exactly in line with how they have been purchasing diesel buses.,” said Jit Bhattacharya, CEO, and Co-Founder at BasiGo.
“With KCB’s pioneering support for this technology and BasiGo’s Pay-As-You-Drive financing, we have made electric buses more affordable and more convenient for owners to purchase and operate than a diesel bus.” added the CEO
BasiGo’s electric buses are available to purchase on a blended sale or operating lease model. Under this model, the bus is available to purchase from Ksh. 5,000,000, with BasiGo retaining ownership of the battery within the bus. The battery is subsequently leased to the PSV operator via the Pay-As-You-Drive (PAYD) subscription.
BasiGo currently offers Pay As You Drive subscriptions at a price of Ksh 20 per kilometer driven through the subscription. BasiGo mitigates the risks to PSV operators by guaranteeing battery performance and providing all charging and maintenance for the bus throughout its lifetime.
Speaking during the event, KCB Bank Director of Corporate Banking, Esther Waititu noted that the arrangement is in line with the Bank’s vision to leverage partnerships that seek to provide value to its customers.
“Entrenching sustainability in our operations means that we always consider our economic, social and environmental impact before we make any decision on partnerships and collaborations. We are delighted to partner with BasiGo as this reflects our commitment to supporting key customers to derive value from their long-standing loyalty,” Waititu said.