Summary
- South Africa is a significant market for new vehicle sales in Africa, with over half a million vehicles sold annually
- MojaEV in Kenya is introducing a leasing model for electric vehicles to increase access to new cars
- MojaEV has launched NETA V electric cars for the Nairobi taxi market, with plans to deliver 500 vehicles by mid-year
- The leasing cost for a Neta EV from MojaEV starts at $30 per day with a minimum lease period of 6 months
- The availability of charging infrastructure is growing in Kenya, making it easier for EV users on leasing programs to navigate the country
Article
South Africa is a leading market for new vehicle sales in Africa, with over half a million new vehicles sold each year. The country’s well developed car financing sector plays a significant role in this. However, over 99% of vehicles sold in South Africa are still internal combustion engine (ICE) vehicles, highlighting the lack of electric vehicles (EVs) in the market. In many African countries, the lack of accessible and affordable long-term vehicle financing leads to high numbers of used vehicle registrations each year, with most people opting for older used vehicles due to lower incomes.
MojaEV, a leading distributor of EVs in Kenya, aims to revolutionize transportation in East Africa by introducing vehicle leasing as a way to increase access to brand new vehicles. Partnering with EV brands like Neta, MojaEV launched 100 NETA V electric cars for the Nairobi taxi market, with plans to deliver 500 vehicles by the middle of the year. The NETA V features a 40.7 kWh battery with a driving range of up to 401 km, making it a viable option for taxi drivers looking to transition to electric mobility.
The cost to lease a Neta EV from MojaEV starts from just 4,000 Kenya shillings ($30) per day, with a deposit of Ksh50,000 ($387) or Ksh100,000 ($772) depending on the lease option. This price point makes leasing a brand new EV comparable to short-term rentals of used ICE vehicles in Kenya, offering a compelling value proposition for drivers. MojaEV’s leasing model targets taxi drivers, corporates, and the general public, with a minimum lease period of 6 months and credit vetting requirements at the Credit Reference Bureau (CRB).
One of the main concerns for those interested in leasing EVs is the availability of charging infrastructure. However, electric vehicle charging networks like EVchaja in Kenya are expanding, with increased utilization at charging sites in major cities like Nairobi, Mombasa, Nakuru, Kisumu, and Nanyuki. The growth of charging networks on major highways is essential to ensure long-range EV drivers can travel comfortably across the country. Increasing charging stations will not only support EV leasing programs but also encourage more individuals and businesses to adopt electric mobility.
Expanding the EV leasing program to include more EV models and cities in Kenya will cater to diverse preferences and increase access to electrification. By offering leasing options for EVs, MojaEV aims to alleviate the financial burdens associated with owning older ICE vehicles, such as maintenance costs and lack of warranties. As charging infrastructure continues to grow, more people are expected to embrace EV leasing programs and contribute to the clean energy transition in Kenya.
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