The high upfront cost of electric vehicles has been one of the biggest obstacles preventing more Rwandans from switching from fuel-powered cars. Bank of Kigali (BK) is now aiming to remove that barrier with a new financing product offering up to 100 per cent funding for electric vehicles, alongside interest rates of 14 per cent.

Dubbed BK Go EV, the financing package was unveiled on Thursday at BK Arena as part of the bank’s efforts to support Rwanda’s green transport agenda by making electric mobility more accessible for individuals and transport operators.

The product targets private motorists, taxi operators, ride-hailing companies, cooperatives and public transport businesses.

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Flexible access designed for individuals and operators

Speaking at the launch, Levi Gasangwa, BK’s Chief Business and Corporate Solutions Officer, said the product responds to growing demand for affordable financing as more Rwandans consider transitioning to electric mobility.

"We thought this was long overdue,” Gasangwa said.

He explained that qualified customers can access financing covering the full cost of a new electric vehicle, repayable over five years, with annual interest rates of 14 per cent.

"For private owners acquiring EVs, we will not require additional collateral. We want to make electric vehicles accessible not only to private individuals but also to taxi drivers, taxi operators and bus companies,” he said.

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According to Gasangwa, applicants do not have to be existing BK customers, as the bank will onboard eligible clients from other financial institutions. Customers only need a proforma invoice from one of the bank’s approved vehicle suppliers.

Partnerships and policy alignment drive rollout

The financing programme is supported through partnerships with nine authorised EV suppliers, including Kabisa, BasiGo, CFAO Mobility Rwanda, Chery Automobile, China Electric Vehicles Rwanda, RwandaMotor, Longtai International Automobile Trading, Choice Africa Investment Ltd and Akagera Business Group.

Gasangwa said the initiative aligns with Rwanda’s ambition to reduce greenhouse gas emissions by 30 per cent by 2030 by encouraging wider adoption of electric mobility.

"Fuel prices have increased significantly in recent years, while charging costs remain relatively low. For businesses, this means lower operating costs, while the country benefits from cleaner air and reduced emissions,” he said.

He noted that growing charging infrastructure has also helped boost public confidence in EVs.

"There was a time when charging stations were limited, but today there is sufficient infrastructure in Kigali and more stations are being added across the country.”

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Operators highlight clear cost advantages

For transport operators already using electric vehicles, the savings are becoming increasingly evident.

Jean Pierre Nteziryayo, Managing Director of Kim Transport and Multiservices Ltd, said his company was forced to rethink its fleet after the Rwanda Utilities Regulatory Authority (RURA) introduced regulations in 2024 barring commercial vehicles older than 10 years from receiving operating permits.

The company, which had relied on vehicles over 20 years old because they were cheaper, initially struggled to afford electric vehicles.

"We approached BK after realising we had no option but to modernise our fleet. We initially requested financing for 28 vehicles. They started with a smaller number, and as we continued repaying, they increased their support,” Nteziryayo said.

Today, BK has financed 50 electric vehicles for the company, while additional funding from other sources has helped it grow its fleet to 126 electric and hybrid vehicles.

He illustrated the scale of the savings by comparing operating costs between electric and fuel-powered vehicles, saying the difference has far exceeded expectations.

"A full charge costs around Rwf25,800 and gives us about 410 kilometres of driving range. The same amount spent on petrol buys fewer than eight litres of fuel, which would only take a conventional vehicle around 80 kilometres. The difference in operating costs is huge.”

Dealers expect surge in demand as financing removes barrier

Vehicle dealers also expect the financing package to unlock demand from customers who previously viewed EVs as unaffordable.

Agustin Nkotanyi, Sales Manager at Safer Mobility Rwanda, the authorised distributor of BYD vehicles, said financing had been one of the biggest barriers to adoption despite growing interest in electric cars.

"There are many people who want these vehicles but need financing support. This partnership gives them that opportunity.”

He said BYD vehicles available in Rwanda offer driving ranges of between 300 and 600 kilometres depending on the model and come with an eight-year or 200,000-kilometre battery warranty.

Nkotanyi added that charging an entry-level BYD model costs about Rwf16,000 and provides approximately 400 kilometres of driving range, compared to roughly Rwf130,000 worth of petrol needed to cover the same distance in a conventional vehicle.

Beyond lower fuel costs, he said EV owners also benefit from lower maintenance costs because electric vehicles have fewer moving parts than internal combustion engine vehicles.

BK says the new financing package forms part of its broader sustainable finance strategy, which seeks to support investments that contribute to Rwanda’s transition to a greener economy while making environmentally friendly technologies more accessible to households and businesses.