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BasiGo embraces electric 14-seater vans

From the newsletter
Kenyan electric bus company BasiGo is venturing into electric 14-seater vans for the first time. Vans are the most commonly-used mass transport vehicles in Kenya. The company plans to launch its electric vans later this month. BasiGo assembles its electric buses locally and has delivered more than 50 to mass transport operators since it was founded in 2021.
Demand for vans in Kenya is high, and BasiGo’s foray into this vehicle segment will help it increase sales faster. A growing number of electric vans are already being imported into the country by dealers, proving that demand exists.
The electrification of vans is likely to happen faster than buses in Kenya due to the lower costs of adoption. This means commuters could enjoy the benefits of EVs, especially lower fares, sooner.
More details
Commonly referred to as matatus, 14-seaters make up the majority of mass transport vehicles in urban and peri-urban routes, especially in cities like Nairobi, Kisumu, Mombasa, and Nakuru. Kenya has an estimated 70,000 to 100,000 public transport vehicles, with 14-seaters making up about 70%.
Most 14-seaters operate short- to medium-distance routes, often 5–30 km round trips. They are preferred by transport operators because of their fast turnaround, quick maneuverability in traffic, lower fuel costs compared to 25+ seaters and lower initial capital requirement for buyers.
According to BasiGo, electrifying these 14-seater vans will be a gamechanger for Kenya’s public transportation. “As fuel costs rise and the climate crisis intensifies, Kenya must chart a new path—powered by clean, quiet, electric mobility. The same hustle, grit, and entrepreneurial spirit that birthed the matatu industry must now drive the transition to electric 14-seaters,” says BasiGo Kenya Managing Director Moses Nderitu.
BasiGo’s buses have proved to be a hit in Kenya and Rwanda, where the company has received more than 600 orders. The company plans to locally assemble 1,000 electric buses for Kenyan bus operators over the next three years. However, its production capacity is still low, which has restricted its capability to deliver the orders on time.
The startup raised $41.5 million in October last year, which it is using to scale its production capacity. The capital raised by BasiGo combines $24 million in Series A equity funding and $17.5 million in debt. The Series A equity round was led by Africa50 with co-investment from Novastar Ventures, CFAO Kenya, Mobility54, SBI Investment, Trucks VC, Moxxie Ventures, and Susquehanna Foundation.
Across Africa, the 14-seater van market is a critical segment of the continent's transport system, especially in urban and peri-urban areas. These vans are typically used for public service transport and are essential for affordable and flexible mass mobility. In East and West Africa, they serve as last-mile connectors and are often the only option in areas underserved by traditional transport.
While there is growing demand for electric vans, challenges still remain, especially high costs. Currently, the majority of imported vans are used, 8–15 years old, making them cheaper. Further, inadequate financing options limit the ability of buyers to afford new vans or electric ones. However, financing models like lease-to-own or pay-as-you-drive for vans could increase sales.
Our take
Like it is doing for electric buses, BasiGo should introduce tailored financing solutions such as lease-to-own, battery subscription, and SACCO-backed loans to help small operators afford new electric vans. Partnerships with SACCOs, banks, and fintechs will be key to scale adoption.
The availability of sufficient charging stations remains pivotal for the adoption of electric vans and buses for public transportation. BasiGo should deploy charging stations specifically designed for 14-seater routes in high traffic towns like Nairobi, Kisumu, Mombasa, prioritising busy matatu stages and termini.
The Kenyan government should implement clear incentives and import duty exemptions for electric vans, plus establish a roadmap for phasing out high-emission vans while supporting local assembly through tax holidays or subsidies.