NCBA Bank PLC today becomes the first bank to offer electric vehicle financing for its customers countrywide as part of its green finance strategy.
The five-year deal will see customers enjoy asset financing of up to 80 per cent of the total cost of any personal or public service vehicle that they identify. In addition, NCBA will give a 10 per cent interest rate on reducing balance offer for electric vehicle loan applications received within the first 90 days.
Currently, according to data by Ministry of Transport, Infrastructure, Housing, Urban Development and Public Works, traffic snarl-ups and congestions cost the economy Kes 50m in lost productivity every day. Air pollution as a result of traffic snarl-ups contributes to respiratory diseases, the leading cause of morbidity at 39 per cent. Transport sector accounts for 13 per cent of the country’s total emissions.
Kenya has more than 1000 partially electric vehicles with dealers preferring this mobility option because they are environmentally friendly, reduce noise pollution, have long-lasting lithium-ion batteries, reduces energy dependence, and are cost efficient.
According to Group Director, Asset Finance and Business Solutions, Lennox Mugambi: “Transforming the transport sector into a low carbon, efficient and reliable system that will drive social and economic growth is at the heart of what we believe at NCBA. As your home of asset finance and in our quest to addressing what matters to our customers the most, through this asset finance deal we will be investing in environmentally friendly products as we see this as a sustainable way of doing business.”
“Over a couple of months, we have received growing interest and requests from our customers who are keen to purchase electric vehicles. We see this Kes 2bn investment as an opportunity to support the government establish a clean, efficient, and safe transport system that will safeguard an eco-friendly future.”
This asset finance deal comes at a time when the fuel prices are at an all-time high in the country with Diesel going for Kes 140 and petrol at Kes 159 in Nairobi. At NCBA, we are on a continuous journey to do what is right for our customers and the communities in which we operate.
Electric vehicles are not only lighter but have faster acceleration; and the cost of charging them in Kenya starts from as low as Kes.1000. Despite electric vehicles being relatively expensive on initial purchase, they are comparatively cheaper in maintenance and running costs compared to fuel engine vehicles.
Currently electric vehicles travel on average of 313km on full charge and it takes up to 4 hours for the Battery to be fully charged based on the type of charger, type of battery, charge level and its capacity.