Dutch development bank FMO is considering a $12.5 million senior debt investment in M-KOPA’s Kenya electric mobility business to support financing for electric motorcycles and batteries aimed at micro-entrepreneurs in the country.
According to project disclosures seen by DevFiNews, the proposed financing would support M-KOPA Kenya Mobility Ltd’s growing portfolio of electric motorbike receivables and refinance a $7 million bridge facility previously provided by one of the group’s shareholders to support early-stage operations.
M-KOPA, founded in 2012, provides financing and digital financial products to underserved consumers and small entrepreneurs across Africa using mobile-based payment systems and alternative credit models. Its Kenya mobility unit was established in 2023 to focus on the sale and financing of electric motorcycles and batteries.
The proposed transaction underscores growing interest among development finance institutions in supporting clean mobility financing platforms in emerging markets, particularly models targeting informal workers and small businesses with limited access to traditional banking services.
FMO said the investment aims to address the shortage of affordable clean transport options and limited access to financing for micro-entrepreneurs in Kenya, while also helping ease constraints in local-currency debt financing for the sector.
The transaction is expected to receive FMO’s “100% Green” and “100% Reduced Inequalities” labels.
FMO classified the project as Environmental and Social Category B, citing limited potential risks related to waste management and labour conditions.
The project triggers several IFC Performance Standards related to environmental and social risk management, labour conditions, pollution prevention, and community health and safety.