KCB Bank customers can now access financing options to purchase electric Public Service Vehicles (PSV) following a deal the bank has secured with e-mobility startup and financing company BasiGo Ltd.
The customers will enjoy funding of up to 90 per cent for an extended period of 36 months, a move that aims to support the reduction in greenhouse gas emissions and enhance the customers’ response to climate change through adaptation and mitigation measures.
Moreover, customers will be privileged to access embedded tracking and fleet management gadgets that will be already installed on the electric buses, in addition to insurance financing for their vehicles.
On the other hand, BasiGo will provide servicing, charging, and maintenance of the batteries.
Speaking during the signing of the agreement, BasiGo Chief Executive Officer (CEO) and Co-Founder Jit Bhattacharya noted that the agreement with KCB is game-changing as it will make access to electric buses by PSV owners in the country affordable.
“This deal will allow bus owners to secure asset financing for an electric bus exactly in line with how they have been purchasing diesel buses. With KCB’s pioneering support for this technology and BasiGo’s Pay-As-You-Drive (PAYD) financing, we have made electric buses more affordable and more convenient for owners to purchase and operate than a diesel bus,” Jit Bhattacharya.
The electric buses are available for purchase on a blended sale or operating mode where one can purchase a bus at the cost of Sh5million, with BasiGo retaining the ownership of the battery within the bus.
BasiGo offers PAYD subscriptions at Sh20 per kilometre driven even as it mitigates the risks to PSV operators by guaranteeing battery performance and providing charging and maintenance for the bus throughout its life.
KCB Bank Director of Corporate Banking Esther Waititu noted that the deal is in line with the bank’s vision of leveraging partnerships that 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,” Esther Waititu.
The deal also includes KCB SAHL Banking customers who, under the Shariah-compliant banking model, will be able to purchase the electric buses from BasiGo at affordable rates.
The agreement is timely as it comes at a time many organizations are switching to green energy and sustainable practices by adopting the UN Sustainable Development Goals (SDGs) as a guide to help in reducing human-caused emissions of carbon dioxide by about 45 per cent by 2030.