Spiro signs supply deal with KOKO Networks

From the newsletter

Electric motorcycle company Spiro has signed a deal to supply more than 3,000 delivery agents working for bioethanol distributor KOKO Networks with electric motorbikes. KOKO operates in Kenya and Rwanda and aims to switch to e-motorcycles to reduce its operational costs. Spiro has sold more than 35,000 motorcycles across Africa supported by a swap station network.

• While individual customers remain the biggest sales drivers for the majority of electric motorcycle companies, organisations with their own fleets are becoming key customers.

• Retail companies in Africa are emerging as major buyers of EVs, especially motorcycles and bicycles, to minimise costs. They mostly use them to make last-mile deliveries.

More details

• KOKO Networks supplies liquid bioethanol fuel and cookers, replacing charcoal and kerosene. The company has built a network of smart fuel ATMs at local retail shops, called KOKOpoints, which dispense the fuel into reusable canisters and connect consumers to affordable goods and services. The company retains many delivery vehicles and motorcycles to accomplish this work.

• Spiro’s partnership with KOKO is one of the many it has signed in recent years with companies and other organizations for the supply of its electric motorcycles as well as build sapping stations. Just last month, the company signed an agreement with the Catholic Church to build solar-powered swapping stations at its churches countrywide.

• In July, Spiro handed over 500 motorcycles to the Boda Boda Riders Cooperative Union, the umbrella body for motorcycle operators in Uganda. It was part of a larger deal to supply more than 4,000 motorcycles to the union. The motorcycle taxi operators will pay an initial deposit of UGX 100,000 ($28) plus UGX 70,000 ($19.5) weekly for two years. 

• It mirrors business-to-business deals signed by other EV companies in the region to grow sales. For example, Kenya-based Roam Electric partnered with national electricity utility company Kenya Power in 2024 to supply 25 Roam Air electric motorcycles into the Kenya Power fleet. This year, Roam partnered with BBROOD to support the company’s bread delivery service.

• Corporate fleets such as ride-hailing, delivery, logistics, public transport and utility companies buy in bulk, providing EV firms with high-volume sales at once rather than depending on slow-moving individual sales. For example, business-to-business deals with major public transport operators have been the main driver of electric bus company BasiGo’s sales in Kenya.

• This comes at a time when logistics firms such as DHL, Uber, Bolt, Jumia, Glovo and public transport operators are already under pressure to cut fuel and maintenance costs. EV firms that sign supply or service agreements with them can secure steady, long-term demand. 

Our take

• Competition in most retail sectors is stiff, and the pressure to cut high fuel and maintenance costs will make transitioning to EVs a strategic priority for retail companies, moving beyond pilot programs to full-fleet replacement.

• The big B2B deals secured by the likes of Spiro and Roam highlight the potential of corporate clients in ensuring that EV companies make good sales. Arising from this could be a scramble for major corporate clients looking to transition their fleets to EVs. 

• Individual adoption of EVs in Africa is still constrained by affordability, charging infrastructure, and awareness. This is less so for institutional and fleet buyers, who are more willing and able to switch early.