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By Victor MUJIDU
The NCBA Group has broadened the financing options for a Sh2 billion electric vehicle funding kitty, disclosing Wednesday that the bank has so far lent an estimated Sh50 million despite low uptake since its 2022 roll-out.
Also Read: NCBA Group records Kes3.4Billion in Q1 net earnings
The low uptake, the bank’s officials said had prompted a review of the kitty’s financing options to enable customers to purchase other components across the electric cars value chain.
“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,” said Gachora.
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.
According to NCBA, the funding kitty is financing both public and private customers up to 80 percent over a regulated term of five years.
Gachora further said that the bank is recording a slight growth in assets in the financing of e-mobility, considering the diminutive uptake of electric vehicles and two-wheelers.
Kenya targets to have about 1,000 electric vehicles and two-wheelers on the road, with the number expected to grow significantly due to market demand.
Kenya Power, on the other hand, has bet on the e-mobility transition in order to increase customer numbers and revenues.
On power distribution, the State-owned electricity distributor disclosed that it has achieved at least a quarter of power voltage transmission across the 47 counties. 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.