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NCBA expands options for electric cars financing

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NCBA branch in Nairobi. FILE PHOTO | NMG

The NCBA Group has widened the financing options for a Sh2 billion electric vehicle funding kitty amid low uptake since its roll-out last year.

NCBA Group CEO John Gachora on Tuesday disclosed that the bank has so far lent an estimated Sh50 million, a low uptake that prompted a review of the kitty’s financing options to enable customers purchase other components across the electric cars value chain.

The lender launched the kitty in August last year targeting customers seeking to purchase personal and public transport electric vehicles amid a heightened focus on the shift to clean transport.

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“The uptake has not been as fast as we expected and now has been expanded to include other components within electric mobility and batteries for cars that are being retro-fitted,” Mr Gachora said on Tuesday.

The kitty finances up to 80 percent of the total cost of any personal or public service vehicle that customers wish to purchase under a five-year repayment deal.

Mr Gachora however added that the lender still sees growth in asset financing for electric mobility as the country steps up efforts to increase the uptake of electric vehicles and two-wheelers.

Electric mobility is a critical plank for Kenya and the rest of the world in cutting carbon emissions through reducing the use of the super and diesel-powered vehicles.

A number of start-ups and locals are investing in the infrastructure and manufacturing of vehicles, offering a market for NCBA Group and other lenders seeking to grow customer numbers by tapping into the clean transport sector.

Kenya is estimated to have at least 1,000 electric vehicles and motorbikes on the roads and the number is expected to jump significantly in the coming years on accelerated demand.

The State-owned electricity distributor, Kenya Power is also banking on the increasing demand for electric mobility to grow customer numbers and revenues.

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The power utility has proposed a charge for electric mobility under a new tariff that is set to take effect from April 1 this year.

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