BasiGo Joins Forces With KCB to Unveil Green PSV Buses
In a deal between KCB Bank Kenya and BasiGo Ltd, an e-mobility startup and financing firm providing electric bus services to sub-Saharan Africa, KCB customers in the public service vehicle market will now have access to flexible financing alternatives.
Customers will benefit from up to 90% finance and a 36-month repayment extension through this cooperation, which will also help them lower their greenhouse gas emissions and improve their capacity to adapt to and mitigate climate change.
Customers will also have access to fleet management tools and embedded tracking devices that are currently present on the electric bus, as well as financing options for insurance. Additionally, BasiGo will handle battery maintenance, service, and charging.
Making electric buses accessible to PSV owners is essential for getting them on Kenyan roads. The agreement we have reached with KCB Bank today is a game-changer. According to Jit Bhattacharya, CEO and Co-Founder of BasiGo, it will enable bus owners to obtain asset financing for an electric bus in a manner similar to how they have been purchasing diesel buses. With BasiGo’s Pay-As-You-Drive financing and KCB’s innovative backing for this technology, we have made electric buses more accessible and practical for owners to buy and run than a diesel bus.
Electric buses from BasiGo are offered for purchase using a hybrid sale/operating lease approach. According to this concept, the bus can be purchased for Kshs. 5,000,000, but BasiGo will continue to possess the vehicle’s batteries. The Pay-As-You-Drive (PAYD) subscription is then used to lease the battery to the PSV operator. Currently, BasiGo charges Ksh 20 per mile traveled for Pay-As-You-Drive subscriptions. Through the subscription, BasiGo reduces the risks to PSV operators by ensuring battery performance and handling all charging and maintenance for the bus during its lifespan.
Esther Waititu, Director of Corporate Banking at KCB Bank, said during the ceremony that the partnership is in keeping with the bank’s aim to use partnerships to benefit its clients.
“Integrating sustainability into our operations implies that before deciding on partnerships and collaborations, we always take into account our influence on the economy, society, and environment. We are excited to join with BasiGo because it demonstrates our dedication to helping important clients capitalize on their enduring loyalty, according to Waititu.
Customers of KCB SAHL Banking will also be provided for, since they will be able to acquire the electric buses from BasiGo at competitive prices thanks to the Shariah-compliant banking model.
Recent completion of BasiGo’s pilot program in association with Citi Hoppa and East Shuttle Since they began running in Nairobi in March 2022, the trial buses have gone more than 90,000 kilometers and transported more than 112,000 people.
For its K6 Electric bus, BasiGo has already received over 100 bookings, and it plans to deliver new buses to SACCO on the reserve list in early 2023.
The agreement comes at a time when organizations are being urged to adopt sustainable practices by using the UN Sustainable Development Goals (SDGs) as a roadmap to help achieve the reduction of global net human-caused carbon dioxide emissions by around 45% by 2030.
