Three e-mobility companies in Kenya will receive $30 million in loans from the US International Development Finance Corporation (DFC) as part of a larger financial package for various projects.
The new DFC financing package, exceeding $250 million, was announced during President William Ruto’s recent state visit to Washington. It includes multimillion-dollar commitments for affordable student rental housing in Nairobi and enhancing digital connectivity across the country.
The e-mobility financing includes a $10 million loan each for Mogo Auto Kenya and BasiGo to advance e-mobility in Kenya. Additionally, Roam Electric will receive a $10 million loan to support the design and development of electric motorcycles, buses, and charging stations throughout Kenya.
The US Department of State also announced $100,000 for technical assistance to support the transition to zero-emission vehicles in Kenya. This includes policy development, capacity building, peer-to-peer learning, and workforce development.
These initiatives support President Ruto’s Africa Green Industrialization Initiative, said the DFC.
DFC CEO Scott Nathan stated, “These new investments elevate DFC’s exposure above $1 billion, and we plan to open a DFC office within this African economic powerhouse.”
“The US and Kenya have strong ties, including a robust relationship with the private sector,” Nathan added. “DFC is doubling down on its commitments to Kenya’s development, with investments into energy, e-mobility, and infrastructure. DFC is also expanding its on-the-ground presence by opening an office to better pursue opportunities across the region.”
Other Investments in the Kenya-US Partnership
- The DFC pledged a $180 million commitment to Acorn Holdings to finance new, affordable student rental housing in Nairobi and across Kenya.
- A $51 million loan to M-KOPA Kenya will support digital connectivity by helping underserved communities access affordable smartphones.
- A $500,000 technical assistance grant to Pezesha Africa will provide enterprise capital to leverage data science, machine learning, and other advanced computing technologies for credit scoring algorithm development.
- A $10 million direct loan to Kenyan company Hewa Tele will supply medical oxygen to healthcare facilities in Africa.
- Two rounds of equity investment totaling $4 million to Kasha Global, a Kenya-based e-commerce company providing personal care, healthcare, and beauty products to low-income women in Kenya and Rwanda.
The countries’ respective energy departments announced their intent to sign a Memorandum of Understanding (MoU) in June in Nairobi to enhance bilateral collaboration on clean energy and carbon management. This MoU will facilitate the sharing of technical knowledge, skills, and expertise across sectors, including geothermal energy development and industrial decarbonization.
“This MoU establishes a framework for sustainable and climate-adaptive economic growth across our countries and regions,” the White House said in a statement.
Source: ESI Africa
