Kenya's Journey Towards E-Mobility Transformation

Kenya is embracing e-mobility as a key component in its economic transformation journey, with a focus on promoting the adoption of electric vehicles through various strategies. The government's commitment to e-mobility is evident in the 2023 Budget Policy Statement, which emphasizes the rollout of electric vehicle charging infrastructure across urban areas and highways to facilitate the mass adoption of electric mobility in the country. State-affiliated enterprises like Kenya Power and KenGen are also making strides in transitioning their fleets to electric vehicles and establishing charging stations as part of their commitment to e-mobility.

In its efforts to promote e-mobility, the government is providing financial and tax incentives to encourage the conversion of public service vehicles and commercial transporters to electric vehicles. Additionally, the Treasury plans to leverage support for the boda boda sector through the Hustler Fund to develop the electric vehicle and motorcycle assembly industry. This transition towards e-mobility aligns with the government's emission reduction goals, aims to provide more affordable transportation options, and seeks to leverage the local motorcycle market to build a thriving electric vehicle industry in the region.

The Finance Act reflects the government's dedication to supporting e-mobility by zero-rating VAT on electric bicycles, lithium-ion batteries, and electric buses. This move is expected to stimulate local production of electric vehicles and their components, creating opportunities for manufacturers in the sector. Furthermore, local manufacturers and importers of electric motorcycles are exempt from excise duty, providing further incentives for the production and importation of electric motorcycles, supporting the government's net zero emissions agenda. Kenya has historically shown support for local assemblies and clean energy, evident in previous legislation that reduced excise duty on electric-powered motor vehicles in efforts to make electric vehicles more affordable.

Earlier this year, the Energy and Petroleum Regulatory Authority took steps to support e-mobility by approving a special tariff for charging electric vehicles to encourage more consumers to adopt EVs. The special e-mobility tariff, which is cost-effective compared to regular household charges, aims to incentivize consumers to embrace electric vehicles and contribute to the reduction of carbon emissions in line with the government's sustainability goals.