Grace Ashiru
Dutch development bank FMO is preparing a $30 million senior-debt financing package for M-KOPA Kenya Mobility, the electric-motorbike subsidiary of African fintech company M-KOPA.
The transaction, which remains in the contracting phase, is intended to support the company’s growing portfolio of electric-motorbike and battery-financing receivables in Kenya. Part of the funding will also refinance a bridge facility previously provided by an M-KOPA shareholder.
The package is structured through two direct FMO loans totalling $22.5 million and a further $7.5 million commitment under FMO’s Building Prospects programme. Up to $23 million is expected to finance new electric-mobility receivables.
M-KOPA Kenya Mobility was established in 2023 to sell and finance electric motorbikes and batteries for Kenyan customers. Its products include electric motorcycles produced by Roam, Ampersand and Spiro, as well as fleet-financing services for transport platforms.
Customers can obtain the electric motorbikes through daily instalment payments rather than paying the full purchase price upfront. The financing packages also include services such as insurance, roadside assistance, theft tracking and a two-year warranty.
The model targets motorcycle-taxi operators and other informal-sector workers who often have difficulty accessing conventional bank financing.
FMO said the proposed transaction would address the limited availability of affordable clean-transport solutions and local-currency debt financing in Kenya. The bank described access to suitable debt as a major obstacle to the growth of the country’s electric-mobility industry.
The investment is expected to qualify fully under FMO’s Green and Reduced Inequalities impact classifications. However, the project has received a Category B environmental and social risk rating because of potential concerns involving battery-waste management and labour conditions.
Once completed, the financing will allow M-KOPA to expand access to electric motorcycles and support Kenya’s transition away from petrol-powered commercial motorbikes.
