- Username SACCO explained how boda boda and tuk-tuk operators will benefit from switching from petrol-powered motor vehicles to electric ones
- The financial institution said operators will pay deposits for the vehicles and clear the balance through daily instalments
- The SACCO’s CEO, Sarah Wahogo explained to TUKO.co.ke how Kenyan youths can qualify for the new facility
TUKO.co.ke journalist Japhet Ruto has over eight years of experience in financial, business, and technology reporting, offering insights into Kenyan and global economic trends.
Username SACCO has launched a new financing facility targeted at hastening the shift to green energy transport in Kenya’s informal mobility industry in an attempt to reduce youth unemployment and encourage the adoption of clean energy.
Source: Facebook
The facility, known as the ‘Boda Boda Tuk-Tuk Express Loan’, provides young riders and small business owners with affordable financing for electric motorcycles and tuk-tuks.
How will Kenyan boda boda operators save costs?
Username SACCO chief executive officer (CEO) Sarah Wahogo told TUKO.co.ke during the launch on Friday, January 30, that by reducing fuel expenses and promoting environmental sustainability, the switch to electric boda bodas and tuk-tuks will enable operators countrywide to increase their income.
For boda bodas, operators will pay a deposit of KSh 35,000 and a daily repayment of KSh 325 for 24 months, while for tuk-tuks, the deposit is KSh 60,000 and the daily repayment is KSh 575 for 30 months.
“Assuming someone was using KSh 600 a day to fuel the old, the traditional tuk-tuk or motorbike, for the electric one, you use half of that. So, you are able to save half of that and take it, either invest it or be able maybe to save that for maintenance and so on and so forth. So, again, in terms of repairs, it is cheaper compared to the traditional tuk-tuk or motorbike,” Wahogo explained.
How will boda and tuk-tuk operators access financing?
Wahogo pointed out that operators must register themselves to qualify for the product.
They will pay a KSh 1,000 registration fee and KSh 5,000 share capital.
“There is no guarantor required and no waiting period. To qualify for this product, all you need to do is register as a member. The cost is just KSh 1,000 for registration and KSh 5,000 for share capital. After that, you can begin building your deposit,” she added.
The SACCO will fund electric tuk-tuks for both passenger transport and SME logistics, as well as electric motorbikes for urban boda boda operations.
Source: UGC
Compared to petrol-powered alternatives, these units promise lower operating costs, greater range per battery switch, and reduced emissions.
How many youths received electric bodas in Machakos?
In other news, over 200 youths in Machakos received electric motorcycles backed by President William Ruto’s administration.
The programme aimed to put an end to years of exploitation by expensive financiers and wealthy bike owners.
The plan offers work injury benefits, health and motorbike insurance, plus battery swap stations and loans from KCB and Spiro Kenya.
Proofreading by Asher Omondi, copy editor at TUKO.co.ke.
Source: TUKO.co.ke
