Kenyan mobility startup eBee Africa, once celebrated for its ambition to put one million electric bicycles on African roads by 2030, has dramatically scaled back operations in 2025. The company laid off most of its roughly 50 employees earlier this year, citing financial strain and sluggish demand. While eBee insists it remains operational, insiders say the business is a shadow of its former self.
Mass Layoffs and Restructuring
In February, eBee issued redundancy notices to staff across all departments, pointing to “substantial decline in revenue, extremely high cost of operations, an unsustainable employee wage bill, and restructuring to adopt a leaner, more efficient structure.” About 10 staff members survived the initial cuts, but sources say they later left on their own, with the final departures occurring in July. The company emphasized in its communication that the layoffs were necessary to preserve long-term sustainability.
Official Response and Staff Exit Packages
In an emailed statement, eBee confirmed that it continues to serve customers and partners but declined to disclose the exact number of staff affected. The company said departing employees received exit packages, though it did not provide details on financial terms. Management assured stakeholders that warranty and after-sales support for existing bikes would continue uninterrupted.
Market Challenges in Kenya’s E-Mobility Sector
The layoffs reflect deeper headwinds in Kenya’s e-mobility ecosystem. While eBee priced its flagship eBX model at KES 99,999 ($774) or KES 9,500 ($74) a month for rentals, many riders found the bikes unaffordable compared to second-hand motorbikes. Delivery workers, a core target market, increasingly favored cheaper electric or petrol motorbikes that offer better value for money.
Competition From Motorbikes
Even with financing options, eBee struggled to compete with the entrenched motorbike market. Sources familiar with the company’s operations say uptake of its bicycles fell well below expectations. The dominance of low-cost motorbikes created a pricing mismatch that even eBee’s financing schemes and promotional campaigns could not overcome.
Company Origins and Expansion
Founded in 2021 by Sten Van Der Ham, Jaap Maljers, Isidoor Maljers, and Joost Boeles, eBee positioned itself as a pioneer in electric mobility. The company manufactured and rented e-bikes while also operating delivery fleets for platforms such as Jumia, Glovo, and Bolt. By mid-2024, eBee had expanded into Uganda and Rwanda through partnerships with Jumia and the City of Kigali.
Leadership Shake-Up and Tax Dispute
In March 2025, CEO and co-founder Sten Van Der Ham stepped down after four years leading the company. His departure came one month after eBee lost a tax dispute with the Kenya Revenue Authority (KRA) over how imported electric bicycles should be classified. The setback added regulatory and financial pressure at a time when the business was already battling operational losses.
Adjusted Strategy for 2025
In its communications, eBee acknowledged that 2025 began with a “renewed strategy to strengthen commercial traction and ensure sustainable growth.” This included streamlining operations, merging certain locations, and pursuing new partnerships to reinforce its offering. The company continues to promote its models, such as the Nyuki cargo bike, as affordable, home-chargeable alternatives for last-mile deliveries.
Broader Implications for E-Mobility
eBee’s struggles mirror the broader challenges facing e-mobility adoption in Kenya. Despite government interest and rising investor attention, adoption has lagged due to cost barriers, infrastructure gaps, and consumer preference for motorbikes. For startups like eBee, survival now depends on recalibrating product offerings, building stronger financing partnerships, and aligning with consumer affordability.
eBee Africa’s retrenchment highlights both the promise and the fragility of Africa’s nascent e-mobility sector. While the company continues to operate in a limited capacity, its downsizing underscores the steep challenges of scaling electric bicycle adoption in price-sensitive markets. Whether eBee can regain momentum will depend on its ability to pivot quickly, secure investor confidence, and compete with entrenched motorbike alternatives.
Source: Techabal