The electrical 2-wheeler market in Kenya has been getting a number of consideration. There are over 15 startups within the sector which are at totally different phases of their growth. After a number of years of pilot packages, a number of them at the moment are ramping up their operations. 285,203 ICE bikes have been registered in Kenya in 2021, so you’ll be able to perceive the give attention to this section given the big addressable marketplace for electrification.
One other key space in Kenya’s transport sector for the motion of individuals and items is the 3-wheeler market. Tuk-tuks are a key section, particularly within the coastal area of Kenya in locations similar to Diani, Mombasa, Kilifi, Watamu, and Malindi. One can’t miss the noise from the 1000’s of tuk-tuks driving round these locations.
Mombasa-based Options Africa is working to catalyze the transition of the tuk-tuk market in Kenya to electrical. Launched in December 2021, Options Africa LTD plans to fill the hole out there and introduce electrical 3-wheelers within the area. Options Africa imports utterly knocked-down kits after which works with Related Car Assemblers (AVA) to assemble the automobiles in Mombasa. Kenya incentivizes the native meeting of automobiles imported as absolutely knocked-down kits by exempting them from import duties and taxes. Solely VAT is relevant. Options Africa has taken benefit of this to make sure that its electrical tuk-tuks might be aggressive with the standard ICE tuk-tuks when it comes to up-front buy worth.
Absolutely constructed imports would value much more available on the market and wouldn’t be as aggressive with their ICE equivalents. To additional be sure that its electrical tuk-tuks are aggressive price-wise, the primary technology comes with lead acid batteries. This was a strategic transfer to enter the market at near parity with ICE equivalents, as lithium-ion variations would value near $2,000 to $3,000 {dollars} extra. And in an trade with tight margins, operators wouldn’t be too eager to pay $2,000 extra upfront. As the worth of lithium-ion batteries improves, Options Africa is working to introduce variations with lithium-ion batteries. For now, the corporate assures clients that its lead acid batteries will final not less than 3 years and it’s also working with companions to have a battery improve program to lithium-ion as soon as the present lead acid variations attain their finish of life.
At the moment, Options Africa owns, operates, and manages the fleet of electrical tuk-tuks that it has launched in Mombasa. As a result of weight and bulkiness of the lead acid batteries, Options Africa at the moment prices the tuk-tuks instantly, however is engaged on a battery swap mannequin as nicely for after they introduce the lighter and simpler to swap lithium-ion choices. It takes between 6 to eight hours to totally cost the lead acid batteries within the tuk-tuks.
Options Africa can be working with the important thing gamers in Kenya’s 2- and 3-wheeler financing sector to permit operators within the sector to get versatile cost phrases and decrease the boundaries to adoption. I’m trying ahead to seeing these electrical tuk-tuks in motion quickly.
Pictures courtesy of Options Africa
