Nairobi, the capital city of Kenya, is known for some unique features; multiple skyscrapers, lush forests, a national park, and iconic wildlife. Yet a big part of Nairobi's unique identity is hinged on its Matatus, a slang for mini-buses used for public transportation around the city.
Matatus weave through the city with blaring music and flashy lights. They bear artistic displays of graffiti artwork inspired by movies, music, religion, and other art representations. Matatus are an attraction, especially for visitors. These privately owned minibuses provide transport for most of the estimated 5 million people who live in Nairobi.
An electric bus operating in Nairobi. Source: SuperMetro
Disrupting the Sector
But amid the noise and colorful spectacles, a gradual shift is taking place. Over the past two years, private bus operators have adopted electric buses because they are a more power efficient and environmentally friendly alternative to fossil fuel powered buses. “I was first struck by how quiet and smokeless the electric buses are. It is a win for the environment, the investor, and passengers as far as I can tell,” says George Muriithi Githinji, a matatu owner. Githinji is the Chairman and co-founder of Oma Services Limited, a matatu business operating within Nairobi. The company has over 20 diesel powered buses and in February 2023, they acquired four electric buses.
“I first saw electric buses and learned about their benefits four years ago while on a business trip in China. They were an instant attraction because of their fuel efficiency and minimal operation costs,” he says. So when Githinji who describes himself as a risk taker heard about a company that was selling electric buses in Kenya, he was among the first matatu operators to get on board.
A 25 seater electric bus owned by Oma Services Limited. Source: Evelyne Makena
Slashing Gas Emissions
The company behind the efforts to ‘green’ the Nairobi Matatus is BasiGo, an e-mobility startup that started operations three years ago. According to Samuel Kamunya, BasiGo's Head of Business Development, a few factors make Kenya an ideal setting to introduce electric buses.
Kenya produces 90% of its electricity from renewable sources including hydro, geothermal, solar, and wind. The power is in surplus. “One of the ways of tapping into this clean energy for the benefit of the environment is by introducing it to the transport sector. We have about 40,000 matatus in Kenya and 20,000 in Nairobi alone,” says Kamunya.
Shifting to electric buses presented an opportunity to reduce emissions from transport. Statistics from the United Nations Environment Programme show that transport is the fastest growing sector in emitting greenhouse gases and is expected to exceed 30% of total emissions in the future. It is also a leading emitter of climate pollutants that contribute to air pollution.
“Covid-19 lockdowns opened our eyes to the huge impact of transport on air pollution. When transport operations were halted, Nairobi skies were clear, and Mt. Kenya could be viewed from around the city for the first time in over two decades,” observes Kamunya.
In the long run, the company intends to contribute to Kenya’s efforts to cut down greenhouse gas emissions from transport. Kamunya adds that every electric bus doing an average of 200 km a day can mitigate up to 40 tonnes of carbon in a year. The company currently has 19 buses operating in Kenya with plans to roll out a local assembly in 2024.
BasiGo initially introduced two 25 seater electric buses into the country for pilot operations in 2022. During this phase, the company conducted real passenger simulations, and tests on buses and incorporated customer feedback to tailor the vehicles to the Kenyan market. In February 2023, the company rolled out 15 more 25 seater electric buses for use by private matatu operators. Another two 36-seater electric buses that were introduced in June 2023 year have been rolled out after completing the pilot phase.
Nelson Mwangi, the chairperson of SuperMetro Bus Company. Source: Evelyn Makena
“Electric buses have been a game changer for us. To start with, our customers love them and that is a plus for business. The cost of operations is also comparatively lower to fossil fuel buses,” says Nelson Mwangi, a matatu owner and Chairman of Supermetro, one of the largest matatu companies in Nairobi. Out of its fleet of 440 buses, six of them are electric.
Innovative Payment Model
Matatu entrepreneurs like Githinji and Mwangi acquire the buses from BasiGo through an innovative funding model referred to as Pay as You Drive. “The model aims to address three challenges, the prohibitive costs of electric buses, availability of charging infrastructure, and technical expertise for maintenance of the vehicles,” says Kamunya.
In Kenya, the cost of buying an electric bus is almost five times more than that of a diesel bus. A 25 seater diesel bus will cost Ksh. 5.5 million (36,184 USD) while its electric counterpart retails at Ksh. 26 million (171,053 USD). A 36 seater diesel bus costs 7 million Kenyan Shillings (46,063 USD) compared to 30 million Kenyan shillings (197, 369 USD) for an electric bus.
Under the Pay as You Drive model, buyers purchase electric buses at a similar upfront cost to a diesel bus of the same capacity. Operators that make purchases under this arrangement co-own the bus(es) with the e-mobility company.
BasiGo electric buses on the road alongside a diesel powered bus. Source: BasiGo
An electric bus is mainly made up of two major components: batteries and a motor, and has no engine. Batteries store charge and power the motor for the bus to move. While the bus body and the motor belong to the matatu operator, the batteries are owned by BasiGo. The Pay as You Drive Model also offers a lease option where operators pay a refundable amount equivalent to 10% of the cost of a diesel bus for a minimum period of 1 year. Operators who lease have no equity on the bus.
Operators who either buy or lease the buses also pay a specific cost to the company for every Kilometer covered. Operators that have bought buses pay Ksh. 24 per Km while those leasing are charged Ksh.45 sh for the 25 seater bus. The cost per Kilometer for the 36-seater buses is Ksh. 44 and Ksh. 65 for those buying and leasing respectively.
With this cost, the company provides charging infrastructure and technical expertise in case a bus develops mechanical problems. “We have trained engineers and technicians and partnered with local garages to service and repair these buses. So far not even a single bus is grounded,” says Kamunya.
Benefits to Operators, Investors, and Passengers
Nairobi commuters have quickly embraced the electric buses. “With the diesel buses, you are forced to wait for passengers to fill the bus at the station, but with the electric bus, it is the commuters that wait for the bus,” says Gachanja Kafau, a driver of one of the electric buses owned by Oma Services Limited.
This has led to better returns for matatu owners since, unlike diesel buses that sometimes make trips not full to capacity, electric buses are struggling to meet customer demand. Due to better returns, drivers of electric buses in companies like Oma are paid about 30-50 % more than their diesel counterparts.
Passengers in Kenya aboard an electric bus. Source: Get Invest
Matatu operators also say that electric buses have cut down 70% of operational costs compared to diesel powered vehicles. With a liter of diesel in Kenya currently retailing at 215 Kenyan shillings, fossil fuel buses end up consuming most of their daily earnings in fueling. That, coupled with the regular servicing the engine powered buses need to work efficiently, consumes more costs.
The electric buses offer USB ports and have WIFI, TV screens, and security cameras. Since the buses have no engine they make no noise, which is an attraction for passengers who are looking to travel in a quiet environment.
Charging Stations
To power the buses, the company has partnered with Kenya Power and Lighting Company which is the Government entity that distributes and retails power to set up three charging stations around Nairobi. To encourage the adoption of e-mobility, the government has ensured that electricity tariffs for the electric vehicles charging stations are almost 30% relatively cheaper, notes Kamunya.
One of the electric bus charging points in Nairobi’s Buru Buru neighborhood. Source: Further Africa
Being a new concept in the market, setting up these charging stations has been met with resistance from land investors who charge the company higher rates to lease or rent. Besides, 25% of Kenyans have no access to electricity, and setting charging stations in such areas requires that power is tapped elsewhere.
When fully charged, a 25 seater bus can drive for 250 Km while a 36 seater can cover 350 Km. “Yet these charging stations are limited. Our buses cover a daily distance of about 400 Km thus need to replenish the charge during the day to keep moving,” says Mwangi. Thus, establishing more charging points will help cut down the vast distances covered to charge the buses.
In the future, the operators hope that the batteries will also be improved to hold more power to cover longer distances. Currently, there is demand for electric buses outside Nairobi, with some operators hoping to introduce routes in nearby towns like Naivasha and Machakos that are within a radius of 100 km.
A Need for Stringent Actions to Curb Air Pollution
Most cities and urban areas in Kenya are grappling with the challenge of air pollution due to factories, vehicle emissions, and other motorized equipment using either petrol or diesel. According to the World Health Organization (WHO), nearly 19,000 people die each year in Kenya as a result of air pollution. The United Nations Environment Program (UNEP) cites 70 percent pollution levels in Nairobi city.
There is hope that the introduction of electric buses and other vehicles will play a positive role in reducing emissions in Kenya. The government and environmental enforcement stakeholders also need to apply stringent measures by fining those caught polluting the environment, banning the burning of fossil fuels, and stopping the building of new coal-fired power plants. All in all, there is still a need for radical behavior change for motorists to embrace the new technology.
