Co-operative Bank of Kenya has set aside an initial KSh1.5 billion financing facility to support the transition of public service vehicles (PSVs) and matatu fleets to electric mobility, in a move expected to accelerate the adoption of cleaner public transport across the country.
The facility, which will be deployed over the next 12 months, will provide Public Service Vehicle Savings and Credit Cooperative Organisations (PSV Saccos) with financing of up to 90 per cent of the acquisition cost of electric vehicles.
The bank unveiled the financing model during an electric mobility forum held in Nairobi on November 12, 2026, bringing together key players in the public transport and electric vehicle ecosystem.
Under the arrangement, the bank will finance Saccos directly to acquire electric vehicles as fleets rather than providing individual vehicle loans to operators. The model is intended to reduce the initial capital burden on transport operators while enabling them to transition to electric mobility at scale.
Co-op Bank Director of Cooperatives Banking Vincent Marangu said the financing structure was designed around the operational needs of public transport Saccos, which require support to acquire multiple vehicles for their routes.
“Saccos are already planning for electric, and what they need is financing that works for a whole fleet. We have supported public transport Saccos for years, and we know how they operate their business,” Marangu said.
The financing comes with preferential lending rates set at one percentage point below the prevailing Kenya Shilling Overnight Interbank Average (KESONIA) rate, offering Saccos more affordable access to capital.
Beyond vehicle acquisition, the bank will provide financing for electric vehicle charging infrastructure, helping operators invest in the facilities required to support fleet operations.
The package will also include digital fare collection solutions aimed at improving revenue management, transparency and operational efficiency among transport operators.
Additionally, Co-op Bank has established partnerships with electric vehicle dealers and suppliers to facilitate vehicle imports and availability through trade finance arrangements.
The first vehicles financed under the model are two 16-seater electric vans supplied by BasiGo and already released to Enabled Mashariki Sacco.
BasiGo Chief Executive Officer Jit Bhattacharya said electric vehicles could help operators reduce running and maintenance expenses, allowing them to retain more earnings from their transport businesses.
“What matters most to an operator is what each vehicle earns at the end of the day. Electric vans cost less to run and maintain than fuel-powered vehicles, and those savings go to the owner,” Bhattacharya said.
The transition is also expected to reduce operators’ exposure to fluctuating fuel prices while supporting Kenya’s efforts to lower emissions from the transport sector.
The Government’s National Electric Mobility Policy provides a framework for the adoption of electric vehicles, including infrastructure development, investment and incentives to encourage the shift towards cleaner transport.
According to the figures provided by Co-op Bank, Kenya has 974 registered public transport operators managing an estimated 7,000 vehicles. Approximately 2,500 new public service vehicles valued at KSh15 billion enter the market annually, presenting an opportunity for electric vehicle financing.
The bank said the financing programme builds on its longstanding relationship with public transport Saccos and its intention to support the modernisation of the sector.
The Nairobi forum also brought together different players in the electric mobility value chain, allowing Saccos to access vehicle financing, electric vehicles, insurance and power supply solutions under one platform.
Participating partners included electric vehicle supplier BasiGo, insurance providers Definite Assurance and Madison, and electricity distributor Kenya Power.
Co-op Bank has invited PSV Saccos interested in transitioning their fleets to electric mobility to approach the bank for information and support in accessing the KSh1.5 billion facility.
The initiative is expected to create new opportunities for transport operators to modernise their fleets while contributing to Kenya’s wider transition towards sustainable mobility.