French Impact Investor Mirova Powers Kenya’s Electric Mobility Revolution with $10M Investment in ARC Ride

In a significant boost to Africa’s electric mobility transformation, French sustainable investment firm Mirova has committed $10 million in senior debt financing to ARC Ride, Kenya’s pioneering electric mobility company that operates the continent’s first and largest automated battery swapping network. This landmark investment represents the Mirova Gigaton Fund’s first foray into electric vehicles in sub-Saharan Africa and signals growing international confidence in Kenya’s emerging green transportation sector.

The transaction, executed through Mirova’s flagship Gigaton Fund, will support the installation of 600 battery-swapping cabinets and 25,000 batteries across Kenya, directly addressing one of the primary barriers to electric vehicle adoption in emerging markets – charging infrastructure accessibility and affordability.

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Kenya’s Electric Mobility Market Gains Momentum

Kenya’s electric vehicle sector is experiencing unprecedented growth, with electric motorcycles capturing 7.1% of all new motorcycle registrations in 2024, up from virtually zero just three years ago. This remarkable growth trajectory positions Kenya as a leader in Africa’s electric mobility transition, with over 4,862 electric motorcycles registered in 2024 alone according to the Electric Mobility Association of Kenya (EMAK).

The country’s ambitious climate targets, outlined in the National Climate Change Action Plan, aim for a low-carbon transport system by 2030. With the transport sector currently responsible for 13% of Kenya’s greenhouse gas emissions, the electrification of the country’s estimated 2.2 million boda boda motorcycles represents a critical pathway to achieving these environmental goals.

The Kenyan government has demonstrated strong policy support for electric mobility adoption, establishing an annual target where 5% of all recently imported vehicles should be electric by 2025. The government has also implemented favorable taxation policies, including a 10% excise duty on electric vehicle imports compared to 20% for conventional fuel cars.

ARC Ride: Pioneering Battery-as-a-Service in Africa

ARC Ride has established itself as a frontrunner in Kenya’s electric mobility ecosystem through its innovative Battery-as-a-Service (BaaS) model. The company’s flagship product, the Corbett electric motorcycle, features a 37.3-mile range and top speed of 37.3 miles per hour, designed specifically for the demanding conditions of African roads and the intensive usage patterns of boda boda operators.

The key innovation lies in ARC Ride’s battery swapping infrastructure, which allows riders to exchange depleted batteries for fully charged ones in under two minutes. The company currently operates 170 charging and battery swap stations throughout Nairobi and surrounding areas, with plans to exceed 100 stations by year-end.

This BaaS model addresses the fundamental affordability challenge in electric vehicle adoption by decoupling battery ownership from vehicle ownership. Electric motorcycles in Kenya typically cost $1,350-1,500, with batteries accounting for 40% of the total cost. By removing this upfront cost, ARC Ride makes electric motorcycles price-competitive with conventional internal combustion engine motorcycles priced at $850-1,200.

Riders can access unlimited battery swaps for as low as KES 350 ($2.54) per day or pay per swap at KES 185 ($1.34), providing flexible pricing options that suit different usage patterns. The economic benefits are substantial, with riders typically saving around 30% on operating costs compared to conventional motorcycles for equivalent distances.

The Mirova Gigaton Fund: Catalyzing Clean Energy Transitions

The Mirova Gigaton Fund, launched in 2022 with backing from the European Investment Bank, has emerged as a significant force in emerging markets clean energy financing. The fund has raised $282 million of its $500 million target, with the EIB contributing $75 million in senior commitments and an additional €5 million in catalyst junior investment.

“This investment reflects Mirova’s mission to support innovative, high-impact climate solutions in emerging markets. ARC Ride is redefining urban mobility in Africa through a scalable model that reduces emissions and improves livelihoods. We’re proud to support their journey,” said Rim Azirar, deputy head of emerging market energy transition at Mirova, which had €33 billion in assets under management at the end of June 2025.

The fund employs a blended finance structure, combining public or philanthropic capital with private funding to enable investments in high-perceived-risk climate mitigation technologies. This approach allows public financiers to use a relatively small amount of their resources as a first loss to mobilize larger amounts of private capital, ultimately expecting to deploy $1.2 billion of private capital to reach the large number of underlying climate projects needed.

Previous investments by the Gigaton Fund demonstrate its broad emerging markets focus, including a €9.75 million investment in German solar firm Ecoligo’s Vietnam projects, a €15 million investment in SolarAfrica for continental renewable energy solutions, and $20 million in long-term debt financing to Ghana-based ManoCap Energy.

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Building Sustainable Infrastructure with Climate Impact

The investment in ARC Ride aligns directly with two critical UN Sustainable Development Goals: SDG 13 (Climate Action) and SDG 8 (Decent Work and Economic Growth). Each electric motorcycle deployed by ARC Ride is estimated to reduce CO2 emissions by 2 tonnes annually, contributing meaningfully to Kenya’s climate goals while simultaneously improving the economic prospects of motorcycle taxi operators.

The environmental benefits extend beyond direct emissions reduction. ARC Ride’s swap stations incorporate 405 watts of solar photovoltaic panels, enabling renewable energy charging and providing backup power through motorcycle battery packs during grid outages. This integration demonstrates how distributed renewable energy can enhance grid resilience while supporting clean transportation.

The company has strategically located its swap stations through partnerships with established businesses such as Domino’s Pizza, Artcaffe, and Ola Energy, ensuring accessibility while leveraging existing commercial infrastructure. Each swap station serves approximately 50 riders per day, with utilization rates increasing as the network expands and more riders transition to electric motorcycles.

Economic Transformation for Kenya’s Gig Economy

Kenya’s boda boda sector employs millions of riders who often work in the gig economy, making them particularly sensitive to fuel cost fluctuations. With petrol prices consistently hovering around KES 200 per liter in Nairobi, the prospect of saving up to 40% on daily operating costs through electric motorcycles represents a transformational economic opportunity.

The sector’s importance cannot be overstated – motorcycles comprise over 50% of Kenya’s total vehicle fleet and are integral to the country’s transportation ecosystem. The transition to electric mobility directly impacts the livelihoods of these riders while contributing to urban air quality improvements, as traditional motorcycles can pollute up to 10 times more than cars.

Beyond individual economic benefits, the electric mobility transition is creating new employment opportunities across the value chain. ARC Ride has partnered with various organizations to train mechanics and engineers who specialize in electric vehicle servicing and repair, creating a new category of green jobs for Kenya’s youth population.

Strategic Partnerships and Ecosystem Development

ARC Ride’s success reflects the maturation of Kenya’s electric mobility ecosystem, supported by strategic partnerships with both domestic and international organizations. The company recently secured $5 million in financing from British International Investment (BII), the UK’s development finance institution, to accelerate the rollout of 5,000 electric two-wheelers and expand BaaS infrastructure.

The company has also established partnerships with asset financing firms such as Watu Credit Limited, which has financed close to 100 electric assets in Kenya and aims to encourage broader adoption of electric vehicles by the motorcycle community. These financing partnerships are crucial for enabling riders to access electric motorcycles through flexible payment structures rather than large upfront investments.

The broader ecosystem includes multiple players working toward standardization and scale. The ChargeUp! partnership, led by Energy 4 Impact, ARC Ride, Fika Mobility, Imperial College London, and Strathmore University, has analyzed learnings from battery swapping implementation and published recommendations for expanding the BaaS model across the continent.

Africa’s Electric Vehicle Market Potential

The investment in ARC Ride reflects broader opportunities across Africa’s electric vehicle market, which is projected to grow at 25% annually over the next five years. The African EV market is expected to reach $4.20 billion by 2030, driven by supportive policies, decreasing battery costs, and innovative financing models.

Motorcycle taxis represent a particularly compelling opportunity, comprising more than one-third of urban rides in cities like Nairobi and offering immediate electrification targets with limited dependence on extensive road infrastructure. Kenya’s fleet of 2.2 million boda bodas could potentially cut transport emissions by 85% if fully electrified, leveraging the country’s renewable-heavy electricity grid.

The success of Kenya’s approach is attracting regional attention, with companies like Roam being named Kenya’s fastest-growing company and ranking among Africa’s top 40 in the 2025 Financial Times and Statista ranking of Africa’s Fastest Growing Companies. This recognition reflects the sector’s evolution from pilot projects to commercially viable businesses with clear growth trajectories.

Looking Forward: Scaling Sustainable Mobility Solutions

The Mirova investment positions ARC Ride to significantly expand its operations while contributing to the standardization of battery swapping infrastructure across East Africa. This standardization is crucial for broader electric vehicle adoption, as it enables interoperability between different manufacturers and creates economies of scale that reduce costs for all participants.

The deployment of 600 additional battery-swapping cabinets and 25,000 batteries represents a substantial scaling of ARC Ride’s infrastructure, potentially supporting thousands of additional electric motorcycles and creating a demonstration effect that encourages further adoption. The investment also validates the commercial viability of the BaaS model in African contexts, potentially attracting additional capital from both impact investors and commercial funders.

As Kenya continues to position itself as a leader in Africa’s clean technology transition, the success of companies like ARC Ride provides a replicable model for other African countries seeking to electrify their transportation sectors. The combination of innovative financing models, supportive government policies, and targeted international investment demonstrates how developing countries can leapfrog to cleaner technologies while addressing employment and economic development needs.

The Mirova-ARC Ride partnership represents more than just a financial transaction – it embodies the potential for impact investing to catalyze transformative change in emerging markets while generating measurable environmental and social benefits. As Africa’s electric mobility sector continues to mature, such strategic investments will be crucial in ensuring that the continent’s transportation transformation is both sustainable and inclusive.

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By: Montel Kamau

Serrari Financial Analyst

23rd September, 2025