Nairobi — Electric bus startup BasiGo has received Sh766.5 million ($5 million) from British International Investment (BII) for the delivery of 100 electric buses in Kenya.

The funding comes from BII's Climate Innovation Facility, a catalytic program for accelerating climate innovation in emerging markets.

BasiGo will use the capital to scale the local assembly of e-buses amid growing demand for clean transport solutions.

The buses will be delivered through BasiGo's Pay-As-You-Drive financing model, which enables bus operators to acquire electric buses without incurring the high upfront cost.

"We are thrilled to receive this catalytic financial support from BII. It is a testament to our shared commitment towards building scalable climate solutions here within Africa," said Jonathan Green, co-founder and chief financial officer of BasiGo.

"Because electric buses in Kenya are powered by the country's abundance of renewable energy, electrification of public transport in Kenya holds transformative potential," Green added.

"Electric buses promise freedom from fuel imports, cleaner air, modern and affordable transport for the general public, and significant impact in lowering transport CO2 emissions."

Founded in 2021, BasiGo has led the introduction of electric buses into Nairobi's public transport fleet.

It has deployed 19 e-buses to public transport operators in Nairobi, currently representing the largest fleet of electric buses in sub-Saharan Africa.

"BII's Climate Innovation facility was designed to help scale impactful, cutting-edge technologies, with the potential to transform the lives of people and communities in Africa," Head of Africa at BII Chris Chijiutomi, Managing Director, added.

BII's debt facility is the first of its kind to support the electrification of the informal public transport sector in Sub-Saharan Africa.

BII has existing indirect exposure to BasiGo through its investment in Novastar Fund II.