<p>The growth of demand for public transport in developing countries has led to the use of diesel fuelled buses for BRT in cities. However, the diesel buses are potential emitters of GHGs and Criteria Air Pollutants (CAPs) which have disastrous effect on climate change and human health. Studies reveal that the use of electric powered buses for BRT in cities can reduce and/or eliminate GHGs and CAPs from the road transport sector. Nonetheless, most transit agencies are still sceptical on the investment of E-buses for BRT due to the envisaged high investment cost and business risk. This study therefore proposes the Financial Evaluation Model (FEM) to be applied by a transit agency to determine the feasibility of the investment in E-buses for BRT operations. The study uses the Dar es Salaam based bus rapid transit agency (UDART) as a case study. The secondary data used by the FEM were collected from various sources including the local transit agency, electric bus manufacturer and published sources of similar studies conducted in developing countries. The numerical results reveal that the net cashflows computed by the FEM is negative which implies that the investment of E-buses for BRT in Tanzania is currently not a financially viable option. Further, the sensitivity analysis reveals that capital costs, ridership, interest rates, and average investment life are the key parameters when considering the investment of E-buses for BRT operations.</p>