Affordable Financing That Plugs Into Existing Asset Financing Ecosystem Set To Boost Electric Motorcycle Adoption in Kenya

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Last Updated on: 31st March 2025, 12:48 pm

Mastercard Foundation backs affordable e-mobility financing for women and youth entrepreneurs as Roam and 4G Capital launch an electric motorcycle financing program that saves riders KES 500 daily.

Long term vehicle financing programs are as not as widely implemented in a lot of countries on the African countries, which raises the barriers to adoption of brand new vehicles across most vehicle segments. This is due to several factors, including lower disposable incomes across the majority of the population, and a high rate of informalization of the respective economies, meaning that earning patterns of the majority of consumers are not as regular as in developed markets. There is one segment, however, that has found a way to leverage the current state of the market — the motorcycle sector! With brand new motorcycles costing in the region of $1,500 for a 150cc ICE motorcycle for example, this pricing is at a level that can be structured into manageable repayments as part of 12 to 18 month financing plans. These payments plans are then broken down into daily payments tied to off-takers’ daily earnings, making it more manageable for them. Motorcycle taxi riders form the majority of people taking up these financing packages.

With over 2 million internal combustion engine motorcycles on the road in Kenya, the lower total cost of ownership promised by switching to electric motorcycles has therefore presented a large total addressable market for companies in that sector. Therefore, leveraging the existing motorcycle financing channels can be a great way to accelerate adoption of electric motorcycles. There are over 40 electric motorcycle companies now working in the East African electric motorcycle sector. A lot of them are now at various stages of development, with a number of them now in the early stages of commercial rollouts after several years of intensive testing and pilot programs. One of the leading companies in this space is Roam. Roam is Kenya’s pioneering electric mobility company, and has now partnered with 4G Capital to offer electric motorcycles to boda boda (motorcycle taxi) riders with the most affordable financing option on the market. 4G Capital Ltd is the neo-bank for Africa, a digital credit provider licensed by the Central Bank of Kenya. 4G Capital Ltd provides a combination of working capital loans blended with enterprise training to help micro-enterprises grow. For this new partnership, their services have been tailored to meet riders’ needs, including an affordable deposit payment plan and additional support to ensure successful ownership of the Roam Air.

Through 4G Capital’s financing program under the Jiinue Growth Program (2022–2027), in partnership with the Mastercard Foundation, this program focuses on empowering young people, both male and female, with the majority being in the boda boda industry. The Jiinue Growth Program (JGP) supports Micro-, Small-, and Medium-sized Enterprises (MSMEs) in Kenya by providing access to finance and technical support to drive resilience and growth. This five-year partnership focuses on young people and women-led businesses across all 47 counties in Kenya, helping them scale and prepare for commercial capital. JGP prioritizes sectors with high youth participation, including retail & trade, agriculture, manufacturing, and healthcare. The program is led by the Grassroots Business Fund, with support from DT Global for program management. Key partners include KEPSA, KNCCI, GROOTS Kenya, and financing partners like 4G Capital and Powered by People, which provide loans and purchase order products.

Through this partnership, riders can now own a Roam Air electric motorcycle with a single battery for daily payments as low as KES 460, and save KES 500 in operational costs compared to internal combustion engine motorcycles. By lowering financial barriers, the collaboration provides boda boda riders with greater economic opportunities, including the flexibility to charge anywhere with a power outlet, thanks to Roam Air’s portable charging feature. The innovation also allows riders to spend as little as KES 80 to cover an 80 km single battery range, all while advancing clean mobility.

The transformative initiative is not only making electric motorcycles accessible, but also changing the economics of riding, proving that sustainability and profitability can go hand in hand. With this shift, electric motorcycles are proving to be the most financially viable choice for riders looking to maximize their earnings.

The financing model is tailored to the boda boda sector, where riders operate on daily income. With a KES 25,000 deposit for the motorcycle and a single battery (80 km range), riders can pay KES 460 daily for 24 months to fully own their motorcycle and battery. For an extra battery, the rider will be required to top up KES 5,000 on the deposit with an additional daily payment of KES 207 for the same period. Mobile money integration ensures a seamless payment experience, allowing riders to focus on growing their businesses.

Speaking on the launch of the new partnership, Stephen Kahuthia, Roam Sales Field Manager, said, “Roam is committed to creating a future where mobility is affordable, sustainable, and inclusive. Our partnership with 4G Capital reflects our shared vision of empowering boda boda riders with solutions that drive economic growth and environmental stewardship.”

Valentine Nasila, Head of Partnerships at 4G Capital, said, “We are partnering with Roam to support their mission of accelerating the adoption of clean, sustainable transportation solutions. This partnership aligns with our vision of creating opportunities for growth and economic empowerment. Additionally, collaborating with Roam offers riders a unique opportunity to transition to eco-friendly electric mobility while simultaneously achieving ownership of their electric motorbike. This partnership is about boosting incomes, saving on costs, and contributing to a greener future.”

By integrating Roam’s expertise in electric mobility with 4G Capital’s financial solutions, the partnership ensures that riders can access life-changing opportunities without undue financial strain with comprehensive insurance included.

There are now over 5,000 electric motorcycles on the roads in Kenya. That means that 0.25% of the entire motorcycle fleet is now electric. That’s a good start, and partnerships such as this one will help accelerate adoption.

Images courtesy of Roam