In February, CNN wrote about electric buses leading a quiet revolution in Nairobi. The Kenyan capital has become a center for several pilot projects, aimed at electrifying and streamlining the transport system. Nairobi is home to more than five million people, and the most common way to get around the city is with the matatu, a privately owned minibus or taxi that runs as needed. These often get stuck in traffic and people experience frequent delays. In addition, the matatu usually run on diesel and can be left idling, which creates a lot of local air and noise pollution. The start-up companies Roam and BasiGo want to do something about that. Renewable energy in the transport sector Chief executive of BasiGo, Jit Bhattacharya, tells CNN that the idea behind the company arose at the start of the corona pandemic. Then the air in the city began to clear. Electric transport improves air quality locally, but is also important for reaching the ambitious climate goals. According to the US administrative body International Trade Administration, more than 80 percent of the electricity in Kenya is generated by renewable sources, mainly geothermal energy which is based on heat from the earth’s interior. The country thus has a good starting point for electric public transport. – This means that the costs associated with electricity are more predictable and will not be affected by the prices of fuel, says managing director of Ecobodaa Mobility Kim Chepkoit, to Africanews. Entrepreneur Bhattacharya saw the opportunity in transferring the use of clean and renewable energy to the transport sector. BasiGo first imported two 25-seater buses from Chinese electric vehicle giant BYD, and started a pilot project in March 2022, running a route in a neighborhood in eastern Nairobi. The goal is to get 100 of the battery-powered buses on the road by 2023, and 1,000 by 2025. To achieve the goal, the company is betting on financial incentives, among other things. BasiGo offers a so-called “pay-as-you-drive” scheme, which allows drivers to buy the bus without paying for the expensive technology behind the battery. This means that the initial costs will be roughly the same as for a similar diesel bus. The owner of a bus also gets access to a “pay-as-you-drive” subscription, where all services and guarantees related to the battery are covered against the driver paying per kilometer driven. Creating new jobs In January, BasiGo entered into an agreement with Associated Vehicle Assemblers (AVA), an assembly company based in Mombasa, to assemble more than 1,000 electric buses over the next three years. According to the companies, this will create over 300 jobs locally, in production, charging, maintenance and finance. The Swedish-Kenyan company and competitor Roam is also betting on cooperation with local partners. According to the start-up company, the Roam Rapid bus will be assembled locally, and partly produced in the region, in order to help deal with the increasing unemployment in Kenya. Cheaper to operate Roam’s project coordinator, Dennis Wakaba, writes on the company’s website that “the solution Roam brings […] enabling us to transport people safely, comfortably and precisely in a sustainable and affordable way”. The startup has designed two models specifically for the Kenyan market, the Roam Move and the Roam Rapid. While the former model is intended as an alternative to the traditional matatu, the latter is designed to transport more people and along longer distances, such as to the airport. Roam Rapid has a capacity of up to 90 passengers, a range of 360 kilometres, and can be fully charged in less than two hours. The charging time gives the drivers flexibility and means that they can decide on timetables to a greater extent. Both Move and Rapid are cheaper to operate than diesel buses and also do not require as much maintenance. – Must ensure better infrastructure The transition to an electric transport sector has only just begun in Kenya, and there is still a long way to go. Admittedly, the demand for electric power generation has increased in recent years and more investors are turning their attention to the African market. Christopher Kost, head of the Africa program at the Institute for Transport and Development Policy (ITDP), tells CNN that competition from private players brings financial benefits, but that the public sector also needs to be involved. – It is not appropriate for the vehicles to be replaced with electric ones. The public sector must ensure better infrastructure and regulations, invest in roads, charging stations and workshops, he tells CNN. The International Trade Administration writes on its website that the authorities in Kenya have launched several initiatives to promote electric transport. Among other things, they have reduced the excise duty on electric vehicles from 20 to 10 per cent and set a target that 5 per cent of all newly registered vehicles should be electric by 2025. Willing to expand the business Lack of infrastructure that supports the emergence of electricity is, however, an obstacle. So far there are few charging stations in the country, and most are in and around the capital, Nairobi. The good news is that the state-owned electricity company Kenya Power is in the lead for a new charging network. The company started a pilot project in September with the aim of developing and testing charging systems for homes, businesses and public use. Currently, the charging systems are being tested in Nairobi and Nakuru, but the pilot project will form the basis for deployment on a national basis, which could take up to two years. To Business Daily Africa, Kenya Power says it has enough electricity to charge 50,000 buses and two million motorbikes during off-peak hours. This ensures that start-ups can continue their business. Both BasiGo and Roam plan to expand to other regions in Africa. To CNN, Bhattacharya mentions Rwanda, Uganda, Tanzania and Ethiopia as possible countries. Roam is looking for potential tenders in East Africa, and plans to roll out the Roam Move bus model across the region by the end of 2024.
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A green future for public transport in Kenya: start-ups are betting on electric buses
