What President Ruto’s electric boda boda plan means for Kenya’s e-mobility roadmap

June 1 is set aside for Madaraka Day, a Kenyan national holiday meant to celebrate the East African country’s partial independence from the British colonialists in 1963. It’s a special day, and perhaps that’s why William Ruto – Kenya’s fifth president – chose it to make a major announcement regarding the motorcycle taxi operators, popularly called boda boda. 

Essentially, President Ruto announced his administration’s plan to provide electric boda bodas that will be accessible to citizens through a financing system that benefits the needs of riders. 

Boda boda is the local word for transporters whose means of transporting are bikes. The term could refer to either the bikers or their bikes. It is an attractive scheme, particularly for the youth population who want to escape the frustration of unemployment. However, the hire purchase schemes set up by lenders to assist individuals in getting a motorcycle have been described as “exploitative” in recent times.  

The tradition is to make a downpayment accompanied by regular fees for one to two years. However, the current system is nothing like many lenders advertised. Riders find themselves paying more than the original motorcycle price, an unfair practice that has gone unchecked for a while. 

Ruto, speaking at the 60th Madaraka Day in Embu, claimed he had encountered several boda boda operators that have complained about the high installment fees they have to make regularly to keep their motorcycles.  “When I went round the country they (boda bodas) stepped forward and told me they are victims of an exploitative financing system,” Ruto said. 

That disclosure was soon followed by an announcement intended to breathe hope into every boda boda rider. Ruto said his administration was developing a mechanism that would allow citizens to get boda bodas without dealing with a “predatory system.” 

Despite its popularity, some rogue elements have given the trade a bad name many times. In 2022, former President Uhuru Kenyatta sanctioned a crackdown on all boda boda riders following the sexual assault of a woman. This led to the seizure of over 2,000 boda bodas within 3 days. 

Therefore, Ruto’s statement should elicit a sigh of relief for boda boda riders, but some crucial questions need to be answered. 

How exactly will Kenya roll out this “mechanism”? What measures will it take to ensure the new financing system isn’t just a cosmetic makeover but will work for those concerned? Is September a feasible deadline, given the heat it’s getting for the controversial 2023 Financial Bill which, if passed, will enforce more taxes on citizens? 

Kenya is facing tough times, with public officeholders experiencing salary delays. The money intended for remuneration was channeled to debt settlement. The country’s external debt which reached KES 4.7 trillion ($37.63 billion) in January raises great concerns about the country’s future economic state.  A country battling with its economy not only deters foreign investments but will offer fewer opportunities for its people, especially the youth. 

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Is Kenya ready for electric mobility? 

Alongside the new financing mechanism announced by Ruto, the president also said that electricity, not petrol, would power the forthcoming boda bodas. This is a bold move considering that a large-scale electric motorcycle adoption demands the necessary infrastructure.  

Like smartphones, electric motorcycles need to be charged. This can be done at home or at a  public station. Riders can also leverage the practice of battery swapping and get a charged one in place of a spent one. However, these need heavy financial commitments. 

Early this year, President Ruto signed a financial deal worth KES 50 billion (EUR 347.6 million) with the European Union to build East Africa’s first electric bus rapid transit lane. Called the Green Mobility-Nairobi core bus rapid transit line 3 (BRT 3), the project is expected to feature electric buses, inexpensive fares, and accessibility for all Kenyans.

The EU agreement was preceded by a slew of policies meant to encourage the adoption of clean mobility. For instance, the Kenyan authorities lowered the import duty for electric vehicles (EVs) in 2019. In 2021, Kenya Power revealed a plan to establish charging points as part of measures to ease the concerns that come with EV acceptance. 

The government isn’t the only stakeholder keen on introducing clean mobility. Local electric mobility startup BasiGo launched its first-ever charging station in the country. Alongside this, BasiGo shared plans for the establishment of at least 16 charging points throughout Nairobi before 2023 ends. Last year, it launched the first batch of homemade electric buses, promising that by 2025, it would have 1,000 of them running. It currently has an EV assembly in Kenya following a fundraising deal worth $6.6 million. 

While BasiGo seems to be on the right path, it hasn’t been rosy for startups in that niche. Last November, NopeaRide, the country’s pioneer EV taxi service, ceased operations because its parent company, EkoRent Oy could not secure more funding. Before Nopearide’s closure, it had created a charging network in Nairobi for its 70 vehicles. 

Although Kenya’s EV revolution is in its early stages, the above developments (minus NopeaRide’s exit) should give anyone cause to hope. Although an electric BRT network and charging points are laudable achievements, will EVs be affordable as their petrol-engine counterparts? And will the Ruto government, like the US, introduce tax rebates to make EV purchases tolerable? 

An e-mobility report commissioned by Kenya Power found that, as of February 2023, 1,350 EVs are in the country. The report also states that by 2025, 5% of newly registered vehicles will be electric-powered. 

All eyes on Kenya 

Many African countries will undoubtedly keep a close eye on Kenya’s proposed electric boda bodas. If the plan succeeds, similar schemes should appear in other places. But first, Africa must be intentional and ensure the infrastructure is available. Nobody will buy an EV when the nearest charging point is many towns away. Kenya Power also has a key role to play for future EV owners wanting to change at home. Energy generation must rise quickly. 

Tax credits can potentially motivate mass EV adoption, so let the leaders think in that direction.