Bolt Kenya electrifies half its motorcycle fleet

From the newsletter

Ride-hailing firm Bolt has transitioned 50% of its Kenyan motorcycle fleet to electric vehicles. It translates to over 500 electric motorcycles the company now operates in Kenya. This was facilitated through M-KOPA, a consumer finance company. Bolt intends to expand its electric motorcycle fleet to 1,500 by the end of 2025.

• Motorcycle taxis constitute the most prevalent ride-hailing service across the continent. They offer higher profit margins, as they charge lower fares compared to internal combustion engine (ICE) motorcycle taxis and present more affordable leasing and acquisition options.

• The surge in credit financiers across Africa is anticipated to further accelerate the adoption of electric motorcycles. These financiers provide low initial deposits and ongoing after-sales support.

More details

• Bolt’s electric fleet now makes it the largest fully electric fleet in Kenya. This milestone highlights the growing adoption of electric mobility in ride-hailing services. Initially launched as a pilot programme, the initiative scaled up in December 2024 due to strong demand from drivers seeking cheaper alternatives to fuel-powered motorcycles.

• The rapid adoption of electric motorcycles has been driven by the extensive battery-swapping infrastructure in Nairobi and its metropolitan area. This existing infrastructure has encouraged riders to transition from internal combustion engine (ICE) motorcycles, as the swapping model ensures seamless operations.

• Uber and Bolt are intensifying their competition by integrating electric motorcycles into their fleets. Bolt has partnered with multiple e-motorcycle companies, such as Roam and Ampersand, to expand its fleet and offer a variety of models to consumers. Meanwhile, Uber launched its electric motorbike service, Electric Boda, in Nairobi, with a target of deploying 3,000 bikes within six months, a goal that is yet to be achieved.

• Both companies recognise the market potential and are actively pursuing strategies to electrify their fleets. Bolt currently leads in electric motorcycle deployment; however, Uber’s partnership with Arc Ride signals a strong push to gain market share.

• Financing strategies for electric motorcycles in Kenya mainly revolve around flexible payment plans and partnerships designed to reduce the financial burden on riders. Uber’s collaboration with electric vehicle manufacturers allows drivers to lease electric motorbikes at subsidised rates, with the option to own them after completing payments. Similarly, M-KOPA employs a pay-as-you-go model, enabling riders to acquire electric motorcycles through manageable daily or weekly instalments.

• Kenya’s market hosts several financiers specialising in asset and vehicle financing, including M-KOPA, Mogo, Watu Credit, 4G Capital and Fortune Credit. However, the lack of stringent regulatory oversight has raised concerns regarding the transparency and fairness of their lending practices. For instance, Watu Credit has been reported to charge annual interest rates of up to 103%, far exceeding their own borrowing costs of 20% from banks. This absence of regulation not only jeopardises consumer rights but also undermines the credibility of financiers. Additionally, Mogo has been fined for misleading customers and making unapproved variations to loan terms.

• Looking ahead, the trajectory of Kenya’s electric motorcycle sector will likely be influenced by both financiers and ride-hailing companies. Financiers play a crucial role in providing accessible and affordable funding solutions, allowing more riders to transition to electric vehicles. At the same time, ride-hailing companies drive demand by integrating electric motorcycles into their fleets and promoting sustainable transport solutions.

Our take

• The competition between Bolt and Uber is not solely about market share in ride-hailing—it is about transforming Africa’s manufacturing and technological capabilities.

• The aggressive expansion of electric motorcycles by Bolt and Uber will create a surge in demand for locally assembled e-bikes, pushing manufacturers to ramp up production. As these ride-hailing companies commit to fleet electrification, local EV manufacturers such as Roam, Spiro, Ampersand, and Ecobodaa stand to benefit from large-scale orders, enabling them to scale operations and improve efficiency.

• The push by ride-hailing giants will also attract foreign partnerships and investments in local assembly plants, leading to knowledge transfer and technical skill development. For instance, Ampersand and BYD collaborated last year to expand battery manufacturing, a move that could significantly enhance Africa’s capacity for local EV production.