Co-operative Bank Group (Co-op Bank), led by Kenyan banking magnate Gideon Muriuki, has set aside Sh1.5 billion ($11.5 million) to finance electric public service vehicles, targeting matatu savings and credit cooperative societies as the country pushes to reduce transport emissions.

The facility positions the lender to play a larger role in financing Kenya’s transition to electric mobility.

Financing the fleet transit

The financing will be deployed over the next 12 months and cover up to 90% of the purchase price of electric vehicles. By lending directly to matatu Saccos, the bank aims to help operators acquire vehicles for entire fleets rather than leave individual owners to shoulder the cost of switching from petrol and diesel.

The initiative comes as high vehicle acquisition costs and limited charging infrastructure continue to slow electric vehicle adoption in Kenya’s public transport industry. Co-op Bank is bringing together electric vehicle suppliers, insurers and Kenya Power to address financing, vehicle procurement, insurance and charging requirements under one arrangement.

Cheaper loans for operators

The facility will also support the installation of electric vehicle charging stations and incorporate digital fare collection systems designed to improve revenue tracking and fleet management. The bank will price loans at one percentage point below the prevailing Kenya Shilling Overnight Interbank Average (KESONIA) rate, offering operators more favorable financing terms.

Vincent Marangu, Co-op Bank’s director of cooperative banking, said the lending structure reflects how matatu Saccos manage vehicles, routes and operating costs. The bank is targeting cooperatives that already oversee multiple vehicles and can coordinate fleet purchases, making them potential drivers of large-scale electric transport adoption.

“Saccos are already planning for electric, and what they need is financing that works for a whole fleet,” Marangu said. He added that lending directly to the cooperatives would allow them to acquire vehicles at the scale required by their routes and operating models.

A bigger banking push

Kenya’s matatu Saccos combine transport management with cooperative financial services, coordinating vehicle owners, routes, fares and crews. Their role in organizing the country’s privately operated public transport system makes them an important financing channel as operators consider replacing conventional vehicles with electric alternatives.

The initiative adds to the business priorities of Co-op Bank, one of Kenya’s leading tier-one commercial lenders, led by Managing Director and CEO Gideon Muriuki. Muriuki holds about 2% of the bank, equivalent to 117.53 million shares.

Profits strengthen lending capacity

Co-op Bank reported a 27.2% increase in net profit to KSh27.43 billion ($211 million) for the nine months ended Sept. 30, 2026, compared with KSh21.56 billion ($166 million) a year earlier. Profit before tax climbed 19.6% to KSh35.91 billion ($276 million), while operating income increased 11.6% to KSh75.17 billion (578 million).

Net interest income, a key measure of lending performance, rose 12.7% to KSh51.03 billion ($392 million). The stronger earnings provide context for the bank’s expansion of sector-specific financing, including electric mobility, as Kenya’s transport operators face pressure to modernize fleets and manage rising operating costs.