Kenyan electric vehicle startup ROAM has announced that it has secured financing totaling $24 million. The company has the largest electric motorcycle manufacturing plant in East Africa, the company said it will use this investment to continue to expand production and increase capacity. In recent years, the Kenyan government has taken measures to promote the development of the electric motorcycle industry, the local electric motorcycle startups flourish, electric motorcycle popularity is also increasing.
In Nairobi, the capital of Kenya, motorcycles shuttle in the streets and alleys, its flexible, convenient and inexpensive features favored by many people. According to statistics, there are currently about 3 million motorcycles in the country. However, many local motorcycles are old and lack maintenance, and exhaust pollution is serious. According to the Clean Air Fund, road traffic exhaust emissions in Nairobi account for 20% of the city's greenhouse gas sources and 40% of its air pollution sources.
To reduce air pollution, the Kenyan government is launching a nationwide "e-mobility" program in September 2023 to develop electric motorcycles, tricycles, and cars as the key to greening transportation and reducing air pollution. Supporting the development of the electric motorcycle industry is an important part of this program, and the Kenyan government has proposed that by the end of 2024, the number of electric motorcycles will exceed 200,000 units.
Kenya has obvious advantages in the development of electric motorcycle industry. Currently, more than 85% of Kenya's electricity comes from renewable energy sources, and the country's government plans to realize 100% clean energy generation by 2030. The promotion of electric motorcycles will help reduce fossil fuel use and carbon dioxide emissions. In addition, most motorcycles in Kenya are used for commercial passenger transportation, and the lower operating costs of electric motorcycles are conducive to attracting more employment.
To encourage the development of the electric motorcycle industry, the Kenyan government has launched a number of promotional initiatives, including tax incentives for electric motorcycle manufacturers and battery manufacturers. Motorcycle manufacturers also cooperate with financial institutions to provide preferential loans to buyers. Over the past few years, several Kenyan startups have targeted the electric motorcycle industry. Last July, ROAM opened the largest electric motorcycle assembly plant in East Africa. ARC Ride, a local Kenyan startup, has also begun assembling electric motorcycles and is moving forward with the construction of 300 battery changing stations.
Some startups have also introduced innovative operating models. For example, consumers can purchase only the vehicle, and the battery part will be provided by the manufacturer for the buyer to use. ROAM, for example, has set up hundreds of battery exchange stations in Nairobi's shopping centers, gas stations and other places, where users can find a fully charged battery on a cell phone application and replace the battery at the exchange station.
Currently, some other African countries are also promoting electric motorcycles. African startup Spiro, which operates in African countries such as Benin, Togo, Rwanda and Uganda, has successfully rolled out nearly 10,000 electric motorcycles and set up about 350 battery exchange and charging stations across Africa, with future plans to set up 3,000 battery charging and exchange stations across Kenya.
Joyce Msuya, Deputy Executive Director of the United Nations Environment Programme, said, "With the growing popularity of electric motorcycles in Kenya, Rwanda, Uganda and other African countries, it will help to reduce air pollution and greenhouse gas emissions locally, as well as create more jobs."
