Kenya is actively pursuing e-mobility as a pillar of its socio-economic transformation. The government has implemented policies, tax incentives, and rebates to foster the adoption of electric vehicles (EVs). The 2023 Budget Policy Statement outlines plans to establish EV charging infrastructure nationwide, encouraging mass adoption.
State-owned enterprises like Kenya Power and KenGen are investing in e-mobility by transitioning their fleets to EVs and setting up charging stations. The government aims to provide incentives for public transport and commercial vehicles to switch to EVs. Additionally, the Hustler Fund will support the development of the EV and motorcycle assembly industry.
The transition to e-mobility aligns with Kenya's emission reduction goals, promotes affordable transportation, and leverages the local motorcycle market to establish an EV industry. The Finance Act reflects the government's commitment to e-mobility, with zero-rated VAT on electric bicycles, lithium-ion batteries, and electric buses. This move aims to stimulate local production of EVs and their components.
Furthermore, local manufacturers and importers of electric motorcycles are exempt from excise duty, incentivizing their production and importation. The government has consistently supported local assemblies and clean energy, reducing excise duty on electric vehicles in 2019.
The Energy and Petroleum Regulatory Authority (Epra) has introduced a special tariff for EV charging stations, making it more affordable for consumers to adopt EVs. The tariff is lower than household electricity rates, encouraging the use of EVs and reducing the number of registered vehicles that currently stands at 350.