Kenya’s eBee lays off employees across all departments in major restructuring 

eBee Africa, the Kenyan mobility startup that once promised to put one million electric bicycles on African roads by 2030, laid off most of its roughly 50 employees across all departments in early 2025 and scaled back operations after struggling to drive sales, according to five people familiar with the company. 

eBee told staff in a February redundancy notice seen by TechCabal that it would cut jobs across all departments, citing a “substantial decline in revenue, extremely high cost of operations, an unsustainable employee wage bill, and restructuring of the business to adopt a leaner, more efficient structure.“

About 10 staff survived the cuts but eventually left on their own, with the last batch of employees departing in July, sources said.

“We understand that this news is difficult, and we share in the sadness of having to take these steps. Please know that we are doing everything we can to minimize the impact of these layoffs, and that the decision is driven solely by the need to ensure the company’s sustainability in the face of the current economic climate,” the notice read. 

The layoffs reflect broader challenges facing  Kenya’s e-mobility sector, where riders are opting for cheaper electric motorbikes over eBee’s bicycles, whose flagship eBX model costs KES 99,999 ($774) or about KES 9,500 ($74) a month to rent—pricing that many target customers, like delivery riders, struggle to afford. Even with financing options, eBee’s bikes couldn’t compete with the cheaper second-hand motorbikes dominating the market.

In an emailed response to TechCabal, eBee said it “remains operational and focused on serving customers and partners” but declined to comment on the exact number of affected employees. Affected staff received exit packages, although eBee did not give specifics of that financial arrangement. 

Get the best African tech newsletters in your inbox

Founded in 2021 by Sten Van Der Ham, Jaap Maljers, Isidoor Maljers, and Joost Boeles, eBee manufactures and rents electric bicycles and also operates delivery fleets for platforms including Jumia, Glovo, and Bolt. By mid-2024, eBee had expanded operations to Uganda and Rwanda through partnerships with the City of Kigali and Jumia. 

“The company is not doing well, and the uptake of their bikes has been slower than projected,” said one person privy to eBee’s operations, who requested anonymity to speak freely. The source said that the business has struggled with sales due to low demand for its electric bicycles.

The company acknowledged that 2025 began with a “renewed strategy to strengthen commercial traction and ensure sustainable growth,” which involved streamlining operations and merging select locations. However, it did not specify which locations were merged. 

In the redundancy note, eBee said the decision sought to safeguard the company’s long-term stability and protect the majority of jobs. It also promised consultations with departments and clear communication with affected staff.

“We have been impacted by broader economic conditions and the pace of adoption of electric mobility in Kenya,” eBee said, maintaining that warranty and after-sales support will continue. 

eBee has promoted its bikes as two to three times more affordable than petrol motorbikes, with the added advantage of charging on ordinary home sockets. Models such as the Nyuki cargo bike were marketed as ideal for last-mile deliveries. The company said it is “developing new partnerships that will further strengthen our offering.”

In March 2025, CEO and co-founder Sten Van Der Ham stepped down after four years at the company. Ham’s exit came a month after eBee lost a tax dispute with the Kenya Revenue Authority (KRA) over the classification of imported electric bicycles.

Mark your calendars! Moonshot by TechCabal is back in Lagos on October 15–16! Join Africa’s top founders, creatives & tech leaders for 2 days of keynotes, mixers & future-forward ideas. Early bird tickets now 20% off—don’t snooze! moonshot.techcabal.com

Source: TechCabal | Read Full Story…