Co-operative Bank of Kenya has stepped up efforts to accelerate the transition of public transport in Kenya to electric mobility after setting aside an initial KSh1.5 billion financing facility targeting Public Service Vehicle (PSV) and matatu fleets.
The bank said the facility, which will be deployed over the next 12 months, is designed to help PSV Savings and Credit Cooperative Organisations (Saccos) acquire electric vehicles as part of a broader push to transform Kenya’s commuter transport sector.
Under the new financing model, Co-op Bank will finance up to 90 per cent of the total acquisition cost of electric vehicles purchased by Saccos as fleets, easing the financial burden associated with switching from fuel-powered vehicles.
The bank unveiled the financing model during an electric mobility forum that brought together key players in Kenya’s electric public transport ecosystem.
PSV and matatu Saccos have been invited to approach the bank for information and support on accessing the e-mobility financing facility.
The financing package also offers preferential lending rates set at one percentage point below the prevailing Kenya Shilling Overnight Interbank Average (KESONIA) rate, alongside digital fare collection solutions aimed at improving revenue management and operational efficiency.
Beyond vehicle acquisition, the bank will finance the installation of electric vehicle charging stations and facilitate access to electric vehicles through partnerships with dealers and suppliers.
Vincent Marangu, Director of Cooperatives Banking at Co-op Bank, said the facility was structured around the operational needs of PSV Saccos, which require financing that supports the acquisition of entire fleets rather than individual vehicles.
“Saccos are already planning for electric, and what they need is financing that works for a whole fleet. We have supported public transport Saccos for years, and we know how they operate their business. That is why we are lending to Saccos directly, on stronger terms, so they can buy electric vehicles at the scale their routes demand,” Marangu said.
The bank has already financed the release of the first two electric vehicles under the model, comprising 16-seater vans supplied by BasiGo to Enabled Mashariki Sacco.
BasiGo Chief Executive Officer Jit Bhattacharya said electric vehicles were increasingly attracting public transport operators seeking to reduce operating and maintenance costs.
He noted that lower running costs could improve operators’ earnings while reducing their exposure to fluctuating fuel prices.
The initiative comes as Kenya advances its electric mobility agenda under the National Electric Mobility Policy, which provides a framework for electric vehicle adoption, charging infrastructure, investment and incentives.
According to the figures provided by the bank, Kenya has 974 registered public transport operators running an estimated 7,000 vehicles, while approximately 2,500 new PSVs valued at KSh15 billion enter the roads annually.
Through the KSh1.5 billion facility, Co-op Bank is seeking to leverage its longstanding relationship with public transport Saccos to expand electric mobility adoption and support the gradual transformation of Kenya’s matatu industry.
