The Electric Bike Repayment Trap No One Talks About in Kenya
Electric bikes are being heavily promoted in Kenya as a sustainable alternative to traditional petrol-powered transportation. The appeal is strong: low deposits, quiet operation, and affordable charging promise a cleaner, more economical future for riders. This is especially significant in a market where transportation costs significantly impact the income of those who rely on two- and three-wheeled vehicles. However, a closer look at the financing models reveals a repayment structure that can easily trap riders who may not fully understand the financial commitments they are undertaking.
The Hidden Costs of Electric Bike Financing
The ease of entry into electric bike ownership is often a key selling point. A typical scenario involves a relatively small deposit, such as KES 10,000 (approximately $77), allowing riders to immediately take possession of the bike. The remaining cost is covered by a financing partner. The riders then begin daily repayments. This can be at around KES 450 (about $3.50) each day, for a period of 18 months. The daily nature of the payment makes it seem manageable, and it’s presented as the price of accessing a charging-based future over petrol. Riders often find these daily amounts less daunting than larger, monthly installments, similar to how individuals might accept daily or weekly payment schemes, seemingly making the financial burden more bearable. This approach can obscure the overall cost and financial commitment involved.
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