Kenya Vehicle Manufacturers (KVM) has
secured Ksh.394.5 Million in equity finance from Corporation for Africa and
Overseas (CFAO) Group, to increase the assembly and distribution of electric
buses in both the local market and Rwanda.
Owned by Toyota Tsusho Corporation, CFAO is
a significant player in the mobility sector with the largest dealership network
in Kenya, specialising in a wide range of motor-related goods and services.
The corporate venture capital division of
CFAO, Mobility54, and CFAO Kenya split the infusion of cash. Therefore, CEO and
founder of BasiGo Jit Bhattacharya expressed gratitude to CFAO in a press
release for the organization's support as it develops electric bus
transportation across Africa.
According to information released by the
company, it has received over 500 reservations from bus companies in Nairobi
and an additional 100 from those in Kigali.
With support from CFAO, the business
intends to extend the Pay-As-You-Drive finance model to a larger selection of
commercial electric vehicles.
Data from the Energy and Petroleum
Regulatory Authority (EPRA) shows that by June 2023, there were 2,079 electric
cars and motorbikes nationwide, up from 1,350 in 2021, a 729-unit increase.
The growing acceptance of electric vehicles
(EVs) across the nation attests to their allure as an affordable mode of
transportation that simultaneously mitigates climate change and reduces carbon
emissions.