Kenya EV Financing: How SACCOs Are Driving Electric Mobility for Underserved Communities
By Minahil Amin, Chief of Staff, Capital for Sustainability
Capital for Sustainability (C4S) is a philanthropic initiative whose mission is to align private capital with climate action in low- and middle-income countries (LMICs). C4S’s theory of change is that by visibly deploying grant capital across two strategic levers – (1) climate investments and (2) organizations shaping climate finance policy incentives – we can catalyze a cultural shift in the financial system that leads to significantly more private capital flowing to the Global South. C4S’s ultimate goal is to double LMIC private climate finance in five years. The following article is the second in a three-part series examining the role of credit unions as climate finance intermediaries, a question that sits at the center of C4S’s strategic work.
Part 2: Electric mobility and Kenya’s SACCO network
Kenya’s electricity grid draws more than 90% of generation from renewable sources,1 and in February 2026 the government officially launched its National Electric Mobility Policy, which provides a framework for EV adoption across all transport modes and includes fiscal incentives targeting affordable EV financing.[1] Electric motorcycles already account for close to 10% of new motorcycle sales in the country.[2] Despite this, the financing conditions for most potential EV buyers remain prohibitive.
Transport contributes approximately 14% of Kenya’s economy-wide CO2 emissions, with road transport accounting for nearly all of that figure.[3] EVs carry a strong long-run economic case: energy and maintenance costs for electric motorcycles and small vehicles are roughly 60-80% lower per kilometer than their internal combustion equivalents.[4] The challenge lies in the upfront cost of the EVs. Retail banks price vehicle loans at 18-24% per annum. Fintech lenders can reach 30-70% all-in once fees are included. Even where long-run ownership costs favor EVs, the financing burden at the point of purchase locks out most of the people who would benefit most.
SACCOs, Kenya’s Savings and Credit Cooperative Organizations, present a promising alternative. They offer a more accessible route for informal workers, and typically price asset loans closer to 10% per annum. They manage over KES 1.21 trillion (approximately USD 9.4 billion) in assets.[5] These are institutions already embedded in the communities that have the most to gain from affordable EV access: boda boda operators, ride-sharing drivers, rural enterprises, and informal workers. Their proximity to these borrowers, and the trust that comes with member ownership, gives them a structural advantage that commercial banks lack. Capital for Sustainability (C4S) is working with the World Council of Credit Unions (WOCCU) to expand electric mobility lending among Kenyan SACCOs.
SACCOs already have the member relationships and local reach that commercial lenders lack. A SACCO sector equipped to originate and manage EV loan portfolios affordably would not just serve its existing members better; it would help determine whether Kenya’s e-mobility transition reaches the communities that stand to gain most from it.
C4S is working with credit unions across the Global South to deploy catalytic capital and technical assistance programs needed to channel climate capital to underserved communities. Clean Energy Credit Union, a fossil-free credit union, is an example of this model in the United States. This April, Clean Energy Credit Union is directing a portion of every loan funded during the month toward Capital for Sustainability as part of its Earth Month campaign. To learn more about C4S’s work, visit https://capitalforsustainability.com/.