Electric bus manufacturer BasiGo has signed a groundbreaking deal with Kenya Vehicle Manufacturers (KVM) in Thika to begin local assembly of King Long electric buses, marking a pivotal moment in Kenya’s transition to sustainable public transport. The partnership represents far more than a manufacturing agreement – it signals Kenya’s emergence as a regional leader in electric mobility and sustainable transportation solutions across East Africa.
The collaboration will see the production of modern, high-quality King Long buses under the BasiGo brand, specifically tailored to meet the evolving needs of Kenya’s urban transport sector. This strategic move reflects BasiGo’s commitment to advancing local automotive manufacturing while supporting Kenya’s broader transition to cleaner, more sustainable mobility solutions that align with global climate commitments and national development objectives.
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Revolutionary Partnership Transforms Kenya’s Transport Manufacturing
BasiGo’s ambitious expansion plans include deploying 1,000 battery-powered buses on Kenya’s roads by 2027, seeking to cut emissions from the diesel-fueled minibus system that forms the backbone of urban transport across the region. The company has already assembled 53 buses locally, with another 27 in production at its new Thika assembly line, 50 kilometers northeast of Nairobi.
Built in partnership with Kenya Vehicle Manufacturers, the facility represents the country’s first dedicated electric bus assembly line and forms part of an investment exceeding KES 3.5 billion ($27 million). Production output is expected to rise to 20 buses monthly by 2026, establishing Kenya as a significant manufacturing hub for electric vehicles in East Africa.
The new KL-9 model showcases impressive technical specifications designed specifically for Nairobi’s congested commuter routes. Featuring a 300kWh battery that can be fully recharged in just two hours, the 54-passenger vehicle offers an impressive range of up to 320 kilometers on a single charge, compared to 280 kilometers in BasiGo’s first-generation bus introduced in 2022.
KVM’s Strategic Transformation Under CFAO Ownership
Kenya Vehicle Manufacturers has undergone significant transformation since becoming majority-owned by CFAO Mobility Kenya following a substantial KES 2.3 billion investment. This investment has positioned KVM as a comprehensive hub for local assembly, currently hosting more than 13 global automotive brands and employing over 200 specialized staff members.
Speaking during the launch ceremony, CFAO Mobility Kenya Deputy Managing Director Joshua Anya emphasized the collaboration’s broader economic development objectives. “Our investment at KVM is not just about vehicles—it is about investing in people, providing global technology, and delivering positive impact in the automotive sector,” Anya stated, highlighting the company’s commitment to workforce development and technology transfer.
Over the past year, CFAO Mobility Kenya has undertaken an extensive phased refurbishment of the Thika facility, upgrading infrastructure to meet international standards. This comprehensive improvement program included replacing 35,000 square meters of asbestos roofing, strengthening safety infrastructure, and implementing a robust Environment, Health & Safety framework designed to safeguard workers and surrounding communities.
Kenya’s Ambitious Electric Mobility Strategy
The BasiGo-KVM partnership aligns perfectly with Kenya’s draft National e-Mobility Policy launched in March 2024, which provides a comprehensive framework for transitioning from conventional internal combustion engine vehicles to electric alternatives across all transportation modes – road, rail, air, and maritime transport sectors.
Kenya’s electric mobility ambitions are substantial. The National Energy Efficiency and Conservation Strategy envisions that 5% of all registered vehicles in Kenya will be electric-powered by 2030, up from less than 1% currently. This target aligns with the country’s National Climate Change Action Plan and its commitment to reducing greenhouse gas emissions by 32% by 2030.
Currently, Kenya has approximately 9,000 registered electric vehicles, according to the National Transport and Safety Authority. This compares favorably with regional competitors – about 600 fully electric vehicles in Rwanda and more than 10,000 in South Africa, the continent’s largest EV market.
The government’s commitment extends beyond policy framework development. Kenya Power has announced KES 258 million investment over three years to support electric mobility uptake, focusing on charging infrastructure establishment and fleet electrification.
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Strong Market Demand and Operator Adoption
BasiGo’s innovative Pay-As-You-Drive business model has generated substantial market interest, with the company securing over 500 reservations from bus operators in Nairobi and an additional 300 from Kigali, Rwanda. This financing approach addresses the primary barrier to electric vehicle adoption – high upfront capital costs – by allowing operators to lease vehicles with low initial payments and affordable mileage-based fees.
Major transport operators including Citihoppa, Ummoinner, Rembo Shuttles, Oma Sacco, MetroTrans, KBS, Embassava, East Shuttle, and Latema Sacco have already integrated BasiGo electric buses into their fleets. OMA Service Limited recently became the first operator in Nairobi to run an all-electric fleet on a core route, retiring all diesel buses serving the Kariobangi South-to-Nairobi CBD route in favor of 12 electric buses.
The company’s expansion beyond urban transport is equally impressive. In July, BasiGo launched Kenya’s first electric intercity matatu pilot program, offering 16- to 19-seater minibuses for intercity routes. This pilot, conducted in partnership with 4NTE SACCO and Manchester Travellers Coach SACCO, extends clean transport solutions beyond Nairobi to regional routes including Nyahururu–Nyeri, Nyahururu–Nakuru, and Thika–Nairobi corridors.
International Investment and Growth Support
BasiGo’s rapid expansion has attracted significant international investment, with the company raising more than $63.1 million from notable investors including SBI Investment, Novastar Ventures, Trucks Venture Capital, Africa50, and Moxxie Ventures. The most recent financing round included a $42 million Series A led by Africa50, comprising $24 million in equity and $17.5 million in debt financing.
The United States has also demonstrated strong support for Kenya’s electric mobility transformation. The US Development Finance Corporation (DFC) provided KES 1 billion in financial assistance, enabling BasiGo to increase production from five buses monthly to 20 buses monthly by 2025. This expansion is expected to facilitate the production of 1,000 electric buses over three years while creating 300 green manufacturing jobs.
US Ambassador Meg Whitman’s recent visit to the KVM facility underscored the strategic importance of US-Kenya partnership in advancing green technology adoption. “The United States is committed to supporting Kenya’s transition to green technologies and fostering local manufacturing capabilities,” Whitman stated during her tour, emphasizing how the partnership strengthens economic ties while contributing to global sustainability efforts.
Technical Innovation and Infrastructure Development
The KL-9 electric bus represents significant technological advancement over previous models. Powered by next-generation batteries supplied by Contemporary Amperex Technology Co. (CATL), the vehicle features enhanced efficiency, improved passenger capacity, and reduced charging time compared to earlier electric bus models operating in the region.
BasiGo’s commitment to infrastructure development extends beyond vehicle manufacturing. The company is developing partnerships with local oil marketing companies to expand its DC charging station network beyond Nairobi. “We are working with OMCs to expand our footprint by opening smaller partner sites where motorists can charge their vehicles, especially outside of Nairobi,” explained company officials.
The charging infrastructure expansion addresses one of the primary concerns surrounding electric vehicle adoption – range anxiety. By establishing strategically placed charging stations along key routes, BasiGo ensures operators can confidently complete their routes without interruption while leveraging Kenya’s predominantly renewable electricity grid.
Regional Expansion and Export Potential
BasiGo’s success in Kenya has facilitated expansion into other East African markets, with the company already operating over 100 electric buses across Kenya and Rwanda. The company delivered 28 electric buses to Rwanda in the first phase of a plan to deploy 100 electric buses across the country by 2025.
In Rwanda, BasiGo has established the region’s first all-electric scheduled route from Nyabugogo to Kabuga, powered by 10 BasiGo electric buses in partnership with Rwanda Utilities Regulatory Authority (RURA), the City of Kigali, and local transport operators. This success demonstrates the scalability of BasiGo’s business model across East African markets.
The company’s export ambitions extend beyond East Africa, with plans to serve Nigerian and Tanzanian markets where pressure is growing on governments to cut urban air pollution and reduce reliance on imported diesel fuel. This regional expansion strategy positions Kenya as a manufacturing hub for electric vehicles serving the broader African continent.
Environmental and Economic Impact
The transition to electric buses delivers substantial environmental benefits, particularly in Kenya where over 90% of electricity generation comes from renewable sources including hydro, geothermal, wind, and solar power. This favorable energy mix makes electric vehicle adoption both environmentally and economically advantageous compared to regions dependent on fossil fuel-based electricity generation.
Transport sector emissions represent a significant environmental challenge across Africa, with road transportation accounting for approximately 75% of transport-related carbon emissions globally. BasiGo’s electric buses directly address this challenge while supporting Kenya’s commitment to reducing greenhouse gas emissions by 32% by 2030 under its Nationally Determined Contribution to the Paris Agreement.
The economic benefits extend beyond emission reductions. Electric buses offer lower operating costs compared to diesel alternatives, enabling transport operators to improve profitability while maintaining affordable passenger fares. The Pay-As-You-Drive model includes comprehensive maintenance and charging services, with a 90% uptime guarantee that ensures reliable service for transport operators.
Future Outlook and Strategic Implications
The BasiGo-KVM partnership represents a defining moment for Kenya’s industrial development and environmental sustainability objectives. By establishing local assembly capabilities for electric buses, Kenya demonstrates how African nations can transition from commodity exporters to value-added manufacturers in emerging technology sectors.
The success of this initiative could inspire similar projects across Africa, particularly in countries seeking to reduce fossil fuel imports while building domestic manufacturing capabilities. With proper policy support and continued international investment, Kenya’s electric mobility sector could serve as a blueprint for sustainable transportation development across the continent.
BasiGo CEO and Co-Founder Jit Bhattacharya emphasized the transformative potential of local manufacturing: “In the long term, as we locally assemble and manufacture these technologies at KVM, Kenya can become a key supply chain hub for green technology worldwide.” This vision positions Kenya not merely as a consumer of green technology, but as a significant contributor to global clean transportation solutions.
Looking ahead, the assembly line at KVM is expected to create 300 green manufacturing jobs while supporting Kenya’s broader green industrialization strategy. As production scales up to meet growing demand, the facility could serve as a catalyst for additional automotive industry investment and development.
The partnership between BasiGo and KVM, supported by strong government policy framework and international investment, demonstrates Kenya’s commitment to sustainable development while positioning the country as a leader in Africa’s electric mobility transformation. As the facility reaches full production capacity and expands its product offerings, it will serve as a crucial test case for sustainable manufacturing across the African continent.
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By: Montel Kamau
Serrari Financial Analyst
16th September, 2025
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