Centenary Bank and GreenHub East Africa Limited signed an agreement on 5^th September 2024 to implement electric motorcycles in Kampala. The Green Hub Kampala Project is being implemented by a consortium of partners led by Green Hub East Africa Ltd, which includes Government Institutions, private organizations, and development partners by providing appropriate financial services to the entire value chain.

This is in line with the Bank Sustainability and ESG strategy of financing clean energy to reduce carbon emissions to the environment by motorcycles and vehicles using fossil fuels.

Why the Transport Sector

The National Environment Management Authority (Nema) says the air pollution level in Kampala is eight times higher than the recommended standard. Air pollution has increased from 39.5% microgram per cubic meter in 2019 to the current 41 micro per cubic meter which is eight times higher than the recommended guidelines of 5 microgram per cubic meter set by the World Health Organization (WHO). The poor air quality in Kampala increases the disease burden and about 31,600 people die from air pollution-related diseases which include lung cancer, pneumonia, and asthma, among others, annually in Kampala alone.

Transport is the leading cause of air pollution followed by domestic and biomass burning, industrial emissions, and dust released from untarmacked roads.

Boda bodas are the main means of transport in Kampala and currently, there are over 500,000 ICE boda bodas in the city, and just 100,000 ICE boda bodas release close to 250,000 Carbon dioxide (Co2) into the atmosphere every year. This leads to the global climate crisis and causes health hazards at a local level with subsequent impacts on citizens’ quality of life and national economic growth.

Therefore, financing Boda Boda is in line with the Bank's mission and vision of transforming people’s lives through impactful financing which ensures sustainability.

The Bank has already been extending motorcycle loans for private and business use and is partnering with Green Hub East Africa to develop Electric Motorcycle loan and leasing facilities for end users under this arrangement.

This is a six-year project that is being implemented in phases targeting all the cities and major towns in Uganda expected to reach out to more than 40,000 clients.