BII Invests $5M in ‘Boda Boda’ to Electrify Motorcyle Business in Kenya
On 22 May 2025, the British International Investment (BII) — UK’s Development Finance Institution (#DFI) — announced an investment of USD 5 million into ARC Ride in Kenya. The financing will go toward the procurement of 5,000 electric motorbikes and the expansion of the battery recharge and swap stations of ARC Ride as part of the #GreenMobility drive of #BII. Motorcycle taxis are extremely popular in Kenya and is known locally as ‘Boda Boda.’
In partnership with ARC Ride, GA Insurance of Kenya has recently launched insurance covers tailored for electric motorbike riders. Additionally, ARC Ride proposes an innovative business model which provides ‘Battery-as-a-Service (BaaS)’, marketed as SwapCare, with a network of stations which enables quick battery swaps in lieu of a time-consuming recharge.
“In Kenya, Boda Boda is more than a mere motorcycle: it is an essential component of the transport system, which allows millions of people to travel for work and leisure. I believe that the electrification of the motorbikes will contribute to a greener and more sustainable future for Kenya.”
It is estimated that the 5,000 electric motorcycles will contribute to a reduction of 100,000 tonnes of carbon dioxide (#tCO2) annually. In Kenya, it is estimated that the Transport Sector accounts for 13% of the total Greenhouse Gas (#GHG) emissions, and the initiative is a step in the right direction for the #decarbonization of the economy.
Electric motorbikes is still a nascent business in Africa. According to the ‘Global #EV Outlook 2025’ report, only 9,000 electric motorcycles were sold on the continent in 2024, which represents 0.5% of the total. However, the trend and future for #eMobility are quite clear.
In that regard, Spiro plans to open a electric motorcycle plant in Nigeria with an annual capacity of 100,000 bikes. Similarly, Roam and Ampersand are expanding their electric motorbikes business in Kenya and Rwanda respectively. Other players such as M-Kopa, Mogo and Watu facilitate the access to eMobility via #Fintech and the leasing model.
As a first step, the green mobility wave is set to sweep across the main African cities across the continent. In addition to two-wheelers, three-wheelers are also making a notable breakthrough into the market. Early adopters will enjoy first mover advantage as environmentally-conscious consumers shift from thermal to electrical engines.