Kenyan e-bus startup BasiGo secured $5 M Debt funding to scale local production

British International Investment (BII), the UK’s development finance organization, has granted US $5 million to Kenyan electric bus solutions startup BasiGo in exchange for the delivery of 100 locally made electric buses.

Modern electric buses from BasiGo come with maintenance and charging services for bus operators. These vehicles are made affordable with a pay-as-you-go financing plan that lets operators pay for the battery and charging separately from the bus.

According to a November 2021 media report, the company had begun operations in Nairobi after obtaining funding of KES100 million (US $900,000) earlier in the year.

Since then, Nairobi bus operators have given it over 350 deposits for electric buses, and to expand the local assembly of these buses, it has now taken on a US$5 million debt facility.

The Climate Innovation Facility at BII is the source of the funding. It is a program designed to accelerate climate innovation in developing economies. The US$5 million investment will be used to expand local electric bus assembly to meet Kenya’s bus operators’ rapidly increasing demand.

BasiGo’s pay-as-you-drive financing model will be used to deliver the buses, allowing bus operators to purchase electric buses without having to pay a hefty upfront cost. Therefore, the financial assistance of BII will be essential in ensuring that Kenya’s public transportation system switches from diesel-powered cars to contemporary electric buses. Every BasiGo electric bus that is used in Nairobi instead of a diesel bus reduces annual CO2 emissions by more than 50 tonnes.

“We are thrilled to receive this catalytic financial support from BII. It is a testament to our shared commitment towards building scalable climate solutions here within Africa,” said Jonathan Green, co-founder and chief financial officer of BasiGo. “Because electric buses in Kenya are powered by the country’s abundance of renewable energy, electrification of public transport in Kenya holds transformative potential. Electric buses promise freedom from fuel imports, cleaner air, modern and affordable transport for the general public, and a significant impact in lowering transport CO2 emissions. BII recognises this opportunity, and their support for BasiGo will enable us to directly deliver on that promise.”

BII’s managing director and head of Africa, Chris Chijiutomi, expressed how exciting it was to work with companies like BasiGo that are “at the frontier of tackling climate change.”

“BasiGo is a leader, it’s revolutionising public transport in Kenya with the potential to mitigate five million tonnes of CO2 in Nairobi alone. BII’s Climate Innovation Facility was designed to help scale impactful, cutting-edge technologies, with the potential to transform the lives of people and communities in Africa. We are delighted to partner with BasiGo via this facility,” he said.