The electric vehicle market in Kenya is rapidly expanding. During the last Africa Climate Summit, Kenyan President William Ruto drove an electric vehicle to the venue. The Kenyan government has been taking measures to increase the adoption of electric motorcycles and vehicles, particularly in the gig economy and commercial vehicle sector.
In 2023, electric car sales in Kenya reached 2,694 units, doubling from 1,059 units in 2022. By the end of 2023, Kenya had a total of 3,753 electric cars domestically. In February of this year, Kenyan electric vehicle startup Roam, announced the completion of a $24 million Series A financing round, primarily for research and development (R&D) and large-scale production of electric vehicles in Kenya.
The Kenyan government has implemented several initiatives to incentivize the adoption of electric vehicles and encourage investment in this sector. Earlier this year, Kenya Power announced plans to invest $1.93 million (US) over the next three years to promote the application of electric vehicles in Kenya. And Joseph Sirror, the general manager of Kenyan Power, said the investment would cover the costs of purchasing electric cars and motorcycles and supporting the establishment of charging stations nationwide.
The government has also set a target for 2025, aiming for electric vehicles to constitute 5% of all new vehicle sales. As of the end of 2023, electric vehicles accounted for only 1.62% of Kenya’s total annual vehicle sales of 165,913 units. As Kenya currently relies mainly on imports of electric vehicles, the government has reduced the excise tax rate on PEVs from 20% to 10%. And starting from 2023, all sales of electric vehicles was exempt from VAT. Kenya has also introduced a discounted retail electricity price of 17 KShs/kWh for electric vehicle charging and has mandated that commercial buildings allocate at least 5% of parking spaces to electric vehicles.
In August 2023, the Kenyan government established a 15-member team to develop specific electric vehicle policies, which are currently open to public consultation. A key highlight of this policy draft is Kenya’s aspiration to become a hub for electric vehicle manufacturing.
Source: WeChat Official Account—新华社
Disclaimer: The content provided above is intended solely for educational and reference purposes. The original author retains the copyright to the articles, and their reproduction is aimed at facilitating learning and knowledge-sharing. If there are any concerns regarding copyright infringement, please contact us for immediate removal. We value the intellectual property rights of the original creator and encourage readers to engage with the original work.
