Meg Whitman, US Ambassador to Kenya toured the Kenya Vehicle Manufacturers (KVM) BasiGo assembly line in Thika. This was on the back of the approval of a $10 million loan to help expand its fleet of buses.
The visit highlighted a significant development in US-Kenya relations three months after President Ruto’s historic state visit to the United States in what President Joe Biden called “a new era of technological cooperation”
between the US and Kenya.
During Ruto’s visit, the US International Development Finance Corporation (DFC) announced an over $250 million (Sh32.5 billion) new financing package for Kenya which includes investments to advance e-mobility in the country with E-Mobility company BasiGo getting approval for a $10 million loan to help expand its fleet of buses.
Africa heavily relies on Chinese technology for the growth of the EV sector, as Chinese EV technology currently leads on cost and performance. “In the long-term, as we locally assemble and manufacture these technologies at KVM, Kenya can become the new supply chain hub for the rest of the world,” said Jit Bhattacharya, CEO and Co-Founder of BasiGo.
Whitman’s visit to KVM signifies the growing alliance between the two countries where the United States is eager to see growth in Kenya’s domestic manufacturing sectors. KVM presents an extraordinary opportunity for green industrialization and green jobs in Kenya through the local assembly of modern electric vehicles.
In February 2024, BasiGo completed the assembly of two E9 Kubwa buses, a 9-metre electric bus specifically designed for the Kenyan PSV market. As the demand for electric buses increases, KVM is set to create 300 green jobs after receiving over 500 reservations from bus operators in Nairobi and an additional 300 reservations from bus operators in Kigali, Rwanda.
“The assembly line is currently producing about five buses per month and is expected to increase to 20 buses per month in 2025 to deliver the 500 reservations by operators in Kenya,” said Marian Muthui, BasiGo Kenya Head of Manufacturing.
Citi Hoppa and Super Metro were the first operators to receive locally assembled electric buses. Other operators include Oma Sacco, MetroTrans, KBS, Embassava, East Shuttle and Latema Sacco. A key aspect of Africa’s transition to sustainable transport is green industrialization.
“We are talking about a brand new manufacturing sector in terms of the production of EVs. Green growth goes hand in hand with job creation. The transition to clean, electric buses represents more than just an impact on the environment; it is an opportunity for Kenya to establish itself as a manufacturing hub for modern EVs,” said Moses Nderitu, Managing Director BasiGo Kenya