Kenya's E-Mobility Drive: Transforming Transportation and the Economy

Kenya's E-Mobility Drive: Transforming Transportation and the Economy

Kenya's government has prioritized e-mobility as a crucial aspect of the country's economic development. This commitment is evident in policy pronouncements, tax incentives, and rebates designed to promote the adoption of electric vehicles (EVs).

The 2023 Budget Policy Statement outlines plans for the establishment of electric vehicle charging infrastructure to support the widespread use of EVs. State-affiliated enterprises like Kenya Power and KenGen have also expressed interest in e-mobility by converting their fleets to EVs and establishing charging stations.

To encourage the adoption of e-mobility, the government has implemented various measures. These include zero-rating the value-added tax (VAT) on electric bicycles, lithium-ion batteries, and electric buses, which aims to stimulate local production of EVs and their components. Additionally, local manufacturers and importers of electric motorcycles are exempt from excise duty, further promoting the production and importation of EVs.

Kenya's commitment to e-mobility aligns with the government's goal of reducing emissions, providing affordable transportation solutions, and capitalizing on the potential of the local motorcycle market to develop an EV industry. The special tariff approved by the Energy and Petroleum Regulatory Authority for charging electric vehicles offers incentives for consumers to embrace EVs.