The missing link in push for electric bikes' uptake

Despite a persistent push for electric motorcycle adoption, the idea, especially in public transport, seems to be still novel.

While a drive around Nairobi, particularly in the central business district, shows more riders are embracing the "silent" two-wheelers, the allure of profit margins, a major selling point for this technology, is still not convincing enough to a majority of operators.

What then could be the issue, especially with recent data claiming that electric boda boda operators make more than those who use internal combustion bikes (petrol-powered)?

For businesses, the use of electric boda boda contributes a paragraph or two in their annual sustainability reports, but riders, like those in the rural areas, may not understand this language.

Watu Credit Country Manager, Uganda, Damien Gueroult says the challenge lies more in awareness.

“It is not because ICE (internal combustion engine) is better, but because of awareness,” he said during the Watu Credit 2024 sustainability report launch.

And as more corporates embrace electric boda bodas for their day-to-day businesses amid the push to go green, asset financiers such as Watu are seizing the opportunity.

In the sustainability report, Watu notes a deliberate effort to slow down financing of petrol-powered motorcycles.

“Our decision to scale down traditional mobility asset financing in Kenya while simultaneously expanding our electric vehicle portfolio demonstrates our board’s commitment to adaptive strategy,” says Board Member Watu Holdings Ltd and Watu Tuu Ltd Arvis Ermins.

“This wasn’t merely a tactical adjustment; it represents our fundamental belief that successful companies must evolve with their markets while staying true to their core mission.”

In the report, the asset financier is targeting 5,000 electric vehicles in 2025 after financing 2,193 electric bikes in 2024, a 108 per cent jump compared to 2023. In Kenya, the company financed 406 electric vehicles.

Some claims operating an electric motorbike is more profitable, at least according to a report by Viffa Consult, titled Kenya’s New Boda Boda Boom, released in May 2025.

An electric boda boda operator makes Sh300 more than an average rider.

The report estimates that a rider in Nairobi typically spends around Sh1,000 per day on fuel for a petrol-powered motorbike.

With daily earnings ranging from Sh1,500 to Sh2,250, this means that 40 to 60 per cent of their income is consumed by fuel costs.

“In contrast, riders who have switched to electric bikes report an impressive 75 per cent reduction in expenses, bringing their daily costs down to approximately Sh250,” the report says.

“This reduction is primarily due to the convenience of swapping spent batteries for fully charged ones, which is preferred over parking at charging stations.

The report says on average, a rider needs to swap batteries twice daily for nearly an entire day’s work.

According to the report, the bodaboda sector generates an estimated Sh660 billion annually, about 4.4 per cent of the country’s gross domestic product (GDP). The sector also employs over 2.5 million people.

“As the sector shifts toward electric motorcycles (e-bikes) and local assembly, it is also opening up new doors in the spaces of manufacturing and consequently jobs, all while supporting the rapid growth of e-commerce by enabling last-mile delivery for both large and small businesses,” the report says.

The report states that the boda boda sector’s impact extends beyond transportation, citing it as a key driver of Kenya’s burgeoning e-commerce market.

“These motorcycles are essential for last-mile deliveries, connecting urban and rural customers to goods and services. Whether it’s delivering groceries, medicine, or electronics, boda-bodas enable businesses, both large and small, to expand their reach,” the report says.

It cites Jumia and Glovo as some of the businesses that rely heavily on boda-boda riders to ensure quick and reliable deliveries.

For more operators to adopt electric bikes, however, as the report notes, there needs to be improvement in how financing is done and the development of infrastructure.

The report notes that high insurance premiums and prohibitive interest rates are some of the challenges operators face when buying their bikes.

“Policy makers should collaborate with financial institutions to create subsidised loan programs and insurance schemes tailored for boda-boda operators,” the report says, recommending government-backed subsidies and loan guarantees.

For Watu, the solution lies in increasing access to charging spots.

“A major operational barrier remains the insufficient coverage of battery swapping stations, as well as resistance to adopting new technologies among some customers,” Watu says in the report.

“To address this, we are exploring solar-powered swapping stations in areas where grid access is unreliable, aligning with our broader renewable energy goals.”

Watu notes progress in other markets such as Rwanda, where petrol-powered motorcycles are banned for commercial use.

“Tanzania and other emerging markets also present high growth potential. Our higher repayment and collection rates for EV customers in Tanzania exemplify the financial viability of EV financing and underscore strong client commitment,” their report says.