Fresh institutional funding is pouring into Kenya’s electric motorcycle sector, putting global investors behind two fast-growing operators as the shift away from petrol-powered transport gathers pace.
- •Climate finance firm Nithio has extended a US$7 million senior debt facility to Spiro Mobility, while the International Finance Corporation (IFC) plans to acquire a US$5 million equity stake in Nairobi-based ARC Ride.
- •The investments underscore growing confidence that electric motorcycles, long viewed as experimental in African markets, are becoming commercially viable assets capable of generating stable returns while lowering operating costs in the informal transport economy.
- •During the launch of the national electric mobility policy, the government reported that the number of registered EVs in Kenya rose to 24,754 by the end of December 2025.
Spiro, founded in 2022, has rapidly scaled into one of the continent’s largest electric mobility operators, deploying more than 80,000 electric motorcycles supported by over 2,500 battery-swapping stations across seven African markets. The company maintains assembly facilities in Kenya, Uganda, Nigeria, and Rwanda, reflecting a strategy focused on localized production and infrastructure expansion.
Nithio’s debt facility, structured as working capital financing, will fund the expansion of Spiro’s electric fleet and battery-swapping network, allowing the company to scale operations without diluting equity. The use of structured credit rather than venture capital signals a transition in investor perception, with electric mobility firms increasingly viewed as infrastructure operators capable of supporting institutional-grade financing.
At the same time, the IFC’s planned equity investment in ARC Ride highlights Nairobi’s emergence as a focal point for electric transport investment. ARC Ride’s business model centers on automated battery swap stations, allowing riders to exchange depleted batteries for fully charged units in under a minute, eliminating downtime and reducing upfront vehicle costs.
Electric motorcycles are gaining traction largely because of their economics. Riders can reduce daily fuel and maintenance costs by as much as 40%, addressing one of the most persistent financial constraints in Africa’s informal transport sector, where millions rely on motorcycles for income.
Investors are also targeting battery-swapping infrastructure, which has emerged as the critical backbone of electric mobility adoption. Unlike conventional charging, swapping systems allow continuous vehicle operation without long charging delays, making electrification practical for commercial riders whose earnings depend on constant utilization.
Kenya has become one of the most competitive electric motorcycle markets in Africa, alongside regional expansion by operators including Roam and Ampersand. Motorcycles represent one of the largest sources of urban transport emissions in African cities, while also forming the backbone of commuter and delivery networks.
