Watu has released its 2024 sustainability report, highlighting achievements and challenges across its operations.
CFO Steve Onyango highlights the financing hurdles in electric mobility while explaining how efficiency gains and stronger ESG practices are shaping long-term growth.
Watu’s carbon intensity rose in 2024 despite revenue growth. How will you decarbonise while scaling?
We recognise that absolute growth in our portfolio brought temporary increases in carbon intensity. Our decarbonisation strategy focuses on accelerating financing for electric mobility solutions, with a clear target of reaching 5,000 EVs by 2025. We are also embedding low-carbon operations across our operations through renewable energy sourcing and energy-efficiency upgrades, and working with suppliers and partners to improve upstream sustainability standards.
By aligning growth with a green transition, we are confident that future scale will deliver both financial returns and reduced carbon intensity.
What are the main financial hurdles and opportunities in reaching the 5,000 EV target for 2025?
The primary hurdle is the relatively high upfront cost of EVs and the limited charging infrastructure, which can slow adoption. However, we see this as an opportunity to innovate financing structures – including blended finance, concessional loans and partnerships with development financiers. Additionally, growing policy alignment at the national level and investor appetite for green assets position us well to mobilise resources and meet the 5,000 EV target.
Resource use per employee declined in 2024. What efficiency measures are you prioritising this year?
We are committed to a leaner and more resource-efficient organisation. Key measures include digitising customer journeys to reduce paper use, investing in cloud-based systems to cut energy intensity, and expanding shared service models that optimise staff productivity. We are also integrating performance-linked efficiency targets at departmental level, ensuring accountability across the organisation.
How is smartphone financing being embedded into your broader financial planning and risk management?
Smartphone financing is now a critical growth driver, and we are embedding it into our broader financial models through portfolio diversification. This allows us to spread credit risk beyond mobility assets while leveraging mobile devices as gateways to financial inclusion. Our risk management framework has been adjusted to incorporate device-based credit scoring, enhanced customer verification and stronger impairment monitoring. This integration ensures resilience while expanding access.
Customer complaint resolution rates dropped. What steps are you taking to protect trust and mitigate risk?
We take customer trust seriously. In 2025, we are rolling out a customer experience transformation programme designed to elevate how we engage and support our customers. Key initiatives include expanded customer care channels through strengthening both human-assisted support and self-service options. We are also deploying system-integrated tools to reduce handling time and ensure seamless issue tracking. Further, we are embedding resolution and satisfaction surveys into every interaction to capture real-time customer insights.
We believe these steps will not only improve resolution rates but also build stronger, long-term relationships with our customers.
How are rising ESG disclosure demands from investors shaping your capital-raising and planning?
Investor scrutiny on ESG has sharpened and we welcome this as a driver of discipline and transparency. Our 2024 report marked the first year we aligned with international sustainability disclosure frameworks, and we are committed to annual audited ESG disclosures going forward. These practices enhance our attractiveness to ESG-focused investors, broaden our capital base and allow us to integrate sustainability as a value creation lever rather than a compliance obligation.
In summary, while challenges such as carbon intensity and customer service pressures exist, our sustainability journey is one of embedding resilience, building efficiency, and leveraging innovation. We see ESG not just as a responsibility but as a strategic advantage for capital mobilisation and growth.
