State to build electric motorcycle plant in Mombasa – Ruto

An electric motorcycle manufacturing and assembly plant will be established at the Dongo Kundu Special Economic Zone, President William Ruto said on Friday.

Speaking during the launch of the national e-mobility programme at Mama Ngina Waterfront Park in Mombasa, President Ruto said they intend to change the entire boda boda industry’s two million motorbikes to electric ones in the next few years.

Spiro, which has presence in Togo, Benin and Rwanda, will set up the plant that has capacity to manufacture more than 1,000 motorcycles every day at Dongo Kundu, in the coastal town of Mombasa.

“In the next six months, we are looking forward for Spiro to set up its assembling plant here at Dongo Kundu in Mombasa. And we want in the next year, that manufacturing of these motorcycles should be happening here in Kenya,” said Ruto.

According to the Head of State, the initiative of launching electric motorcycles in the country aims to accelerate e-mobility adoption, empower youth and lower the cost of operation for the boda boda operators across the country.

President Ruto said the motorcycles will retail at Sh160,000 because his administration has removed taxes on motorcycle batteries and other accessories.

The average market price for electric motorcycles is about Sh275,000.

“The market price for these boda bodas is anywhere between Sh275,000 and Sh300,000. But because of several interventions through the Finance Act 2023, the retail price will be Sh160,000,” Ruto said.

In the national e-mobility programme, President Ruto’s administration has partnered with Safaricom Mpesa and Kenya Commercial Bank (KCB) to offer financial assistance and credit facilities to boda boda operators to purchase motorcycles on credit.

“There were many players in this sector who were offering credit facilities to boda boda operators and they were charging an interest of up to 60 per cent. KCB bank has agreed to offer a single-digit interest rate for boda boda operators who would want to buy this new motorbike,” Ruto said.

He added, “Instead of Sh500 daily that boda boda riders were being forced to pay, they can now pay less than Sh200 daily to KCB.”

Boda boda operators have also been complaining of the ever-increasing cost of fuel.

Ruto said they boda boda riders will be required to pay about Sh200 for a fully charged battery for a 70 kilometre journey as compared to Sh400, which is the current cost for fuel for the same distance.

“The battery that you will use, will cost you half the price for fuel. It is cheaper to operate this electric motorcycle than to operate these petrol-operated ones,” the President said.

According to Spiro, the e-boda boda are only charged once at night.

The riders will also be allowed to swap their depleted batteries for fully charged ones at Spiro’s electric bike battery swapping centre.

Ruto arrived in Mombasa at 4.45 pm Friday for the launch accompanied by Mombasa Governor Abdulswamad Nassir, Cabinet Secretaries Moses Kuria (Trade), Kipchumba Murkomen (Transport), Aisha Jumwa (Public Service) and Salim Mvurya (Blue Economy) among other host of national and county leaders.