(Nairobi) – Spiro Kenya, the largest electric vehicle (EV) assembly line in Africa, has sold more than 1,500 electric bikes in Nairobi and Mombasa since September of last year. The company has also expanded its operations to the newly-established city of Eldoret, further strengthening its presence in the country.
Raymond Kitunga, the Deputy Country Head of Spiro Kenya, highlighted that the company’s expansion in Kenya is part of a broader regional growth strategy. Since its entry into the African market in 2022, Spiro has built a significant footprint across Kenya, Togo, Benin, Rwanda, Nigeria, and Uganda. Kitunga emphasized that the company’s primary goal is to make electric bikes affordable to the general population, contributing to the reduction of carbon emissions and promoting the shift away from internal-combustion engine (ICE) vehicles.
“There is a growing awareness among people about EVs. More individuals are realizing that electric bikes are a great investment in the long run, especially when compared to traditional ICE vehicles,” Kitunga said in an interview with Investing Like An Executive.
One of the advantages of Spiro’s electric bikes is their cost-effectiveness. Riders can earn up to 35-40% more than with traditional fuel-powered bikes, and battery swaps, priced at only KSh 290, provide significant savings. The average battery life allows for a range of 75-80 kilometers, which is comparable to the fuel consumption of 2 liters of gasoline—at nearly half the cost of a fuel refill.
While the affordability of electric vehicles is an appealing factor, the upfront cost remains a challenge. To address this, the industry has focused on long-term strategies to reduce costs, such as expanding assembly lines and using cheaper materials in production. Kitunga also mentioned that Spiro is working closely with commercial banks, government agencies, and asset financiers to explore financing options like leasing and daily installment plans, making it easier for riders to afford EV bikes.
“We wanted to position ourselves as the top alternative to ICE vehicles. One key aspect was offering affordable daily repayments, as people were pushing for more accessible payment plans rather than weekly or monthly ones,” Kitunga explained.
Additionally, Spiro owns the batteries of its electric bikes to help reduce overall costs for customers. This ensures that the batteries are stored securely and maintained regularly, relieving customers of the burden of managing their battery’s lifespan.
“We wanted to take away the worry of customers having to manage their batteries. By owning the batteries, we can keep an inventory and ensure they are properly maintained,” Kitunga said.
Spiro Kenya has also made significant investments in research and development to better understand its customers. By analyzing data on customer preferences, Spiro has been able to tailor its bikes to meet the specific needs of boda boda riders across different markets.
“We have conducted extensive research on both the bikes and customer preferences, ensuring that the bikes are not only affordable but also meet the needs of our riders,” Kitunga noted.
With two-wheelers making up 92% of vehicles sold in Kenya, Spiro is positioning itself to capture a more profitable customer base in the near future. The company plans to expand into frontier markets by using geo-mapping and developing charging infrastructure in these areas.
“We are a data-driven company. For every investment, we aim to reach a specific threshold to ensure profitability. Our investments are based on the number of bikes on the road and the distribution of batteries within a particular area,” Kitunga explained.
In May 2024, Spiro secured a KSh 6.5 billion loan from Afreximbank to support its expansion efforts in Africa. This followed a similar KSh 8.2 billion loan from Societe Generale in 2023. Spiro operates 600 battery swapping stations across Africa and plans to continue scaling its operations in the coming years.
Table: Spiro Kenya’s Expansion and Sales
| Metric | Details |
|---|---|
| Total Electric Bikes Sold | 1,500+ in Nairobi and Mombasa |
| New Expansion City | Eldoret |
| Countries of Operation | Kenya, Togo, Benin, Rwanda, Nigeria, Uganda |
| Average Earnings Increase | 35-40% more than fuel-powered bikes |
| Battery Swap Cost | KSh 290 per swap |
| Average Battery Range | 75-80 km per charge |
| Recent Loan Secured | KSh 6.5 billion from Afreximbank |
| Battery Swapping Stations | 600 stations across Africa |