NCBA Group launched a KES 2 billion financing for electric vehicles as some customers began to shift towards battery-powered cars due to advocacy for addressing climate change and the rise of global oil prices.
A statement from the lender revealed that the financing, intended for both personal and public transportation vehicles, was part of their green finance strategy.
The statement announced that the five-year deal would allow customers to receive asset financing of up to 80 percent of the total cost of the electric vehicle of their choice and that NCBA would offer a 10 percent interest rate on reducing the balance for electric vehicle loan applications received within the first 90 days.
Now, according to Business Daily, the lender has expanded the financing options for the initiative due to the low uptake since its launch last year.
NCBA Group CEO, John Gachora, has since said that the bank has only lent approximately KES 50 million, which prompted a review of the funding initiative’s financing options to make it easier for customers to purchase other components related to electric vehicles.
More electric vehicle companies have been attempting to appeal to the Kenyan consumer with electric motoring.
Some of them are part of the public transport system, including ROAM with its ROAM Rapid bus, as well as BasiGo which has since put more than 15 electric buses on Nairobi roads.
Other companies such as Humming Bird have since brought Nissan Leafs to Kenya, but for the hospitality industry.
There are a ton of other companies too, which are in different stages of availing their vehicles to Kenyan buyers.
So far, there are more than 1000 electric vehicles in Kenya.
Power producers, including KenGen and Kenya Power, have since announced plans to replace their ICE vehicles with electric ones.
Kenya Power has also reassured Kenyans that the electric mobility value chain and the grid network is robust enough to support the transition from fossil fuel-powered vehicles.
This announcement was made during the opening session of the Company’s inaugural E-mobility Conference, which brought together more than 300 participants drawn from the private and public sectors to develop a roadmap for electric motorization in the country.