British International Investment (BII), the UK’s development finance institution, has announced a $5m financing deal with Nairobi-based ARC Ride, in a move to accelerate the adoption of electric mobility in Kenya. The investment is aimed at scaling the company’s fleet of electric two-wheelers and expanding its network of battery-swapping stations across the city.
ARC Ride, which launched operations in Nairobi in 2020, targets the rapidly growing boda boda sector — Kenya’s informal motorcycle taxi industry that plays a central role in urban transport and employment. With over 1.2 million boda boda riders in the country, most of whom rely on petrol-powered motorcycles, the sector is also a significant contributor to the country’s transport-related greenhouse gas emissions.
The financing will support the initial rollout of 5,000 electric motorcycles and the associated infrastructure to service them, with ARC Ride estimating that this could save over 100,000 metric tonnes of CO₂ emissions per year. The move comes as Kenya, which generates over 90% of its electricity from renewable sources, looks to decarbonise its transport system and improve air quality in its major cities.
“In Kenya, a boda boda is more than just a motorbike; it’s a crucial part of the transportation system,” said Seema Dhanani, BII’s Head of Office in Kenya and Coverage Director for East Africa. “That’s why electrifying boda bodas is essential for creating a green and sustainable future. We’re backing innovative companies like ARC Ride to accelerate the transition.”
The funding also aligns with the UK’s broader commitment to climate financing and support for clean growth in Africa. The UK has invested more than £600m in climate-related projects in Kenya over the past decade, ranging from off-grid solar to green manufacturing.
Daniel Wilcox, Economic Counsellor at the British High Commission in Nairobi, said the investment would “support Kenya’s climate ambitions, help hardworking Kenyans and their jobs, and make Nairobi a healthier, more attractive place to live and do business.”
Electric motorcycles have become a focal point in Kenya’s e-mobility conversation, with several startups — including ARC Ride, Ampersand, Ecobodaa, and Roam — competing to offer clean and cost-effective alternatives to petrol-powered bikes. These companies are banking on the operational cost savings for riders, who often spend up to 40% of their daily income on fuel and maintenance.
Joseph Hurst, CEO of ARC Ride, said the partnership with BII would allow the company to “put more money in the pockets of our riders whilst protecting the environment.”
“This strategic partnership marks a significant milestone in our efforts to scale and expand our pan-African footprint. Together, we will ensure millions of clean kilometres are driven,” Hurst added.
ARC Ride’s battery-swapping technology is designed to eliminate long charging times, allowing riders to quickly exchange depleted batteries for fully charged ones at designated stations. This model has proved critical to convincing commercial riders — who often operate for more than 12 hours a day — to switch to electric alternatives.
Kenya’s government has signalled increasing support for e-mobility, recently exempting electric vehicles from certain taxes and duties in an effort to stimulate adoption. However, sector observers note that infrastructure development, standardisation, and access to affordable financing remain key hurdles to large-scale adoption.
For BII, the investment in ARC Ride forms part of a wider strategy to support sustainable infrastructure and climate-focused innovation in emerging markets. The institution, formerly known as CDC Group, has committed to align all new investments with the goals of the Paris Agreement and has pledged to invest £3bn in climate finance globally by 2026.
As Nairobi continues to position itself as a regional e-mobility hub, this latest deal underlines growing investor interest in clean transport solutions tailored to African markets. The long-term success of such ventures, however, will depend on their ability to deliver both environmental and economic returns for one of the continent’s most important informal economies.