NopeaRide, Kenya's first fully electric taxi service has said it's shutting down over the inability of its Finland-based parent company, EkoRent Oy to secure additional funding to keep the business running.

According to the company, EkoRent Africa, the local subsidiary of the Finnish company, has filed for insolvency in Kenya, effectively ending the operations of the all-electric vehicle taxi player.

"We have taken our fleet of electric vehicles off the road and have notified our staff and corporate clients. We are now working with relevant authorities to ensure that our operations are wound up in accordance with local legislation," said NopeaRide in a statement.

NopeaRide first launched in August 2018 with 3 electric vehicles and grew the fleet and charging network moderately the following year. By the end of 2019, they secured additional funding and placed orders for additional EVs and chargers.

However, the business was impacted by the pandemic and subsequent lockdowns from March 2020, which led to about 60% immediate drop of the daily kilometers driven by Nopea vehicles.

The company said it was already on a path of recovery this year after receiving a €200,000 funding in 2021 from EEP Africa.

"However, EkoRent OY went into insolvency in Finland and was unable to secure additional financing to grow the business in Nairobi to the next level," the company stated.