Kenyan vehicle leasing firm adds 52 EVs to fleet

From the newsletter

Kenya’s electric mobility solutions provider, Rideence Africa, has added 52 electric vehicles to its fleet. This has increased the company’s fleet to 70 electric taxis, including passenger cars and vans. The company leases the vehicles to customers with an initial deposit of up to $380 and daily remittances of $18. The cars offer a range of 200 km on a single charge. 

• EVs are costly to buy upfront, making leasing a viable alternative. This is especially more so for taxi operators, who are looking to cut their daily operational costs, mainly spent on buying fuel. In Kenya, charging an EV is already way cheaper than fueling a car, making leasing economical for taxi operators.  

• Public transport vehicles, especially buses and minibuses, carry the lion’s share of urban passengers in Nairobi and other cities. Unlike motorcycles, electric matatus require predictable routes, charging hubs at termini, and careful battery range management, all of which demand tighter operational coordination.

More details

• The electric mobility sector in Kenya has, until now, been dominated by electric two- and three-wheelers, particularly in last-mile delivery and bodaboda services, due to their affordability, ease of charging, and flexible business models. Rideence Africa’s entry into public transport signals a strategic shift towards mass passenger mobility, with the potential for a far greater impact on emissions reduction and urban congestion.

• Scaling electric public transport is significantly more complex than deploying two-wheelers, primarily due to higher vehicle costs, longer charging times, and the requirement for dedicated charging infrastructure. Rideence’s decision to import DC fast chargers demonstrates a clear understanding that overcoming infrastructure bottlenecks is just as important as rolling out vehicles.

• Partnering with Mobius, a Kenyan automotive firm, for local assembly demonstrates the company’s intention to tap into the Kenyan government’s CKD (Completely Knocked Down kits) incentive. This move could help lower both the initial deposit and daily repayment amounts for customers.

• Kenya’s public transport system remains highly fragmented, with many matatus owned by individuals or SACCOs, complicating any coordinated electrification effort. Rideence’s leasing model offers a promising prototype for fleet-level partnerships, where one entity manages the vehicles while SACCOs oversee operations.

• With over 9,000 of Nairobi’s 12,000 matatus being 14-seaters, there is a clear opportunity to electrify a standardised fleet segment at scale. This simplifies planning for infrastructure (such as charger specifications), driver training, and spare parts management. Electrifying even 10% of this segment, around 900 vehicles, could result in a tangible reduction in fuel imports, air pollution, and urban noise levels.

• Buses and minibuses serve approximately 4.5 million commuters daily across 175 routes, often covering long distances—making them ideal candidates for electrification. High vehicle utilisation ensures quicker savings from lower fuel and maintenance costs, allowing both operators and leasing companies to recoup investments more rapidly than in private car EV segments. This reinforces the case for fleet-based electrification supported by leasing models and SACCO integration.

• Given that small public transport vehicles are a major contributor to traffic congestion, a transition towards fewer, larger-capacity electric buses or extended electric vans could deliver dual benefits: meeting both climate targets and improving transport efficiency. EV adoption in this space could also pave the way for government-led reforms, including route rationalisation, sector formalisation, and alignment with Nairobi’s proposed Bus Rapid Transit (BRT) system.

Our take

• As EV adoption in public transport gains traction, we are likely to see the gradual development of integrated, tech-enabled ecosystems—where fleet management, route planning, real-time charging status, and fare collection are digitised. This could attract private investment and stimulate innovation in adjacent sectors like mobility-as-a-service (MaaS), data analytics, and smart infrastructure. 

• The push for local assembly through partnerships like Rideence and Mobius is likely to evolve into broader green industrial policy, encouraging the setup of EV component supply chains, battery recycling centres, and specialised technical training institutions. 

• Electrification presents the government with a rare opportunity to restructure the informal public transport sector through incentives tied to fleet compliance, safety standards, and emissions reporting. Cooperative societies and operators that adopt electric fleets may be prioritised for route licences or subsidies, while non-compliant ones face gradual exclusion. This could result in a more formal, regulated, and accountable urban transport system, unlocking better working conditions for drivers and improved service quality for commuters.