M-KOPA Kenya Mobility, the electric motorcycle financing arm of pan-African fintech M-KOPA, has secured a $30 million senior debt commitment from Dutch development bank FMO to accelerate the adoption of electric motorcycles in Kenya, where millions of petrol-powered commercial motocycles, known as boda-bodas, dominate the roads.

The financing, which is still being finalized, is designed to expand access to affordable electric motorcycles through M-KOPA’s pay-as-you-go financing model, helping thousands of riders switch from fuel-powered bikes while reducing operating costs.

The debt facility will be structured in three tranches. FMO will provide two direct loans worth a combined $22.5 million, while the remaining $7.5 million will come under the bank’s Building Prospects programme to refinance a bridge facility previously provided by an existing shareholder.

According to FMO, up to $23 million of the financing will be used to fund new pay-as-you-go loans tied to electric motorcycles and battery systems, strengthening M-KOPA Kenya Mobility’s growing portfolio of receivables.

The Dutch lender said the financing is intended to address one of the biggest obstacles facing Kenya’s clean mobility sector—the shortage of local currency debt financing.

FMO noted that the transaction “addresses both the lack of clean mobility solutions and financial access to micro-entrepreneurs … and the availability of local currency debt financing which is a bottleneck for sector growth.”

The facility is also expected to receive 100 percent Green and 100 percent Reduced Inequalities labels under FMO’s impact investment framework.

Kenya’s two million boda-bodas are slowly going electric

The financing comes as Kenya’s motorcycle transport sector undergoes a gradual transition towards electric mobility.

The country is home to an estimated 2 million petrol-powered motorcycles, popularly known as boda-bodas, which account for the overwhelming majority of motorcycles operating nationwide and make up more than half of Kenya’s entire vehicle fleet.

For years, boda-bodas have served as the backbone of urban transport and last-mile delivery, providing livelihoods for millions of riders across the country.

However, the sharp increase in fuel prices following the outbreak of the war has significantly altered the economics of motorcycle transport. Petrol prices have risen by more than 20%, squeezing earnings for riders who depend on daily income.

As a result, an increasing number of boda-boda operators and delivery workers have begun switching to electric motorcycles to reduce fuel expenses.

Industry estimates indicate that electric motorcycle sales have increased by more than 40 percent in recent months, as riders seek lower operating costs and more predictable daily expenses.

Kenya’s government has also been encouraging the transition through incentives aimed at expanding electric mobility, although the high upfront cost of electric motorcycles and limited access to financing have continued to slow wider adoption.

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M-KOPA wants to remove the biggest barrier to electric bikes

M-KOPA Kenya Mobility was established in 2023 as a standalone subsidiary focused on selling and financing electric two-wheelers, including the locally assembled Roam Air, Ampersand Turaco, Spiro battery-swapping motorcycles, and fleet solutions for ride-hailing platforms such as Bolt.

Rather than requiring customers to pay the full purchase price upfront, the company allows riders to make daily repayments, leveraging the same embedded finance model that M-KOPA has used for more than a decade across solar home systems and, more recently, smartphone financing.

Its electric motorcycle packages also include insurance, roadside assistance, theft tracking and a two-year warranty under its “M-KOPA Cares” programme, reducing ownership risks for riders.

The latest financing is expected to strengthen that lending model by providing longer-term capital that can be deployed to finance additional motorcycles while addressing the shortage of local currency funding available to Kenya’s emerging clean mobility sector.

The investment also builds on M-KOPA’s rapid expansion across Africa.

Yesterday, the company announced it had reached 10 million customers across Kenya, Uganda, Nigeria, Ghana and South Africa after adding 9 million customers in just six years, compared with the eight years it took to reach its first one million users.

The fintech now adds approximately 10,000 new customers every day, driven largely by demand for its smartphone financing platform, which bundles devices with insurance, credit and protection services.

M-KOPA said the milestone demonstrates growing demand for financial products designed for informal workers it describes as “Every Day Earners”.

“Every Day Earners have always been creditworthy. What they needed was credit built around how they really make a living, not a payslip. Informal has never meant unviable. 10 million customers on, that’s no longer a belief. It’s proven,” said Jesse Moore, Co-Founder and CEO of M-KOPA.

The company added that nearly nine in ten independently surveyed customers say its products have improved their lives.

M-KOPA’s expansion has also been supported by investments in local manufacturing. In Kenya, the company opened Africa’s largest smartphone assembly factory in 2023, employing more than 400 people and producing over 3.3 million devices to date.

Its growth has accelerated beyond East Africa as well, with Nigeria becoming the fastest market in the company’s history to surpass one million customers. Today, M-KOPA operates through a direct sales network of more than 40,000 agents across five African countries.

The company said its revenue has grown at an average annual rate of 50% since 2020, while cumulative credit extended to customers has surpassed $2 billion.

Reflecting on the milestone, M-KOPA Chief Financial Officer Faraimose Kutadzaushe said the company’s growth validates its long-standing strategy of building financial products around Africa’s informal workforce.

“Every Day Earners are why we do this. From our very first customer to this year’s ten millionth, this is proof that a model built for Africa’s Every Day Earners doesn’t just work, it scales and endures. It’s a proud moment for our team, and we’re already looking to the next 10 million,” Kutadzaushe said.

Once completed, the FMO financing is expected to strengthen M-KOPA Kenya Mobility’s funding base at a time when development finance institutions remain among the largest providers of capital for Africa’s fast-growing green mobility sector.