Kenya’s electric motorcycle sector is hitting a commercial “tipping point” as institutional investors shift from experimental pilots to heavy-duty infrastructure financing.
Details
Two major players, Spiro and ARC Ride, have secured fresh capital from global climate and development financiers, signaling that the “boda boda” (motorcycle taxi) economy is now viewed as an institutional-grade asset class.
Spiro: Climate fintech Nithio extended a $7 million senior debt facility to the company.
ARC Ride: The International Finance Corporation (IFC) is pursuing a $5 million equity stake in the Nairobi-based startup.
By the Numbers
Kenya is emerging as the regional leader in the EV transition, supported by a national policy launched earlier this month.
35,000: Total registered EVs in Kenya by the end of 2025 (up from ~5,300 in 2024).
15.3%: Market share of electric motorcycles in new registrations for 2025.
80,000+: Electric motorcycles deployed by Spiro across seven African markets since 2022.
2,500: Battery-swapping stations in Spiro’s current network.
Why It Matters
For years, Africa’s EV shift was powered by venture capital and small-scale pilots. The entry of Nithio (debt) and the IFC (equity) suggests a transition toward infrastructure-led financing.
Investors are no longer just betting on “cool bikes”; they are betting on the battery-swapping networks that function like decentralized utility grids.
The Savings: Electric riders can reduce daily fuel and maintenance costs by up to 40%, a massive margin improvement for informal transport workers.
The Speed: ARC Ride’s automated stations allow for swaps in under 60 seconds, solving the “downtime” problem that previously made EVs impractical for 24/7 commercial use.
Between the Lines
The use of structured debt (like Nithio’s facility) rather than pure equity is a milestone for the sector. It allows companies to scale their fleets and “steel in the ground” infrastructure without further diluting ownership, a sign of operational maturity.
What to watch: The government’s new “green-font” EV license plates, introduced in early 2026, will help track these vehicles more accurately and likely pave the way for specific traffic privileges or further tax incentives.
Source: Kenyan Wallstreet
Learn more about other African tech startups on Labari Insights, our data repository for tech in Africa: insights.techlabari.com
