Kenya is set to launch the production of electric SUVs next month at an assembly plant. This facility will manufacture between 5,000 and 6,000 EVs annually. The initiative is a collaboration between the Kenyan company Afrigreen Automobile and Chinese vehicle firm Chery, with a KSh 2.6 billion (around $20 million) agreement.
This project is anticipated to create at least 3,000 local jobs. The first vehicle to roll off the production line will be the Chery Omoda E5, according to Nishant Mishra, global head of Future Mobility at Afrigreen Automobile. He confirmed that the assembly plant will be operational by next month, having secured a suitable site.
Mishra highlighted that the plant’s capacity is set to produce 5,000 to 6,000 EVs annually. These vehicles will also be exported to other East African countries. The Omoda model is designed to navigate both urban and rural terrains, with plans to branch out to pick-up trucks next year.
Abubakar Hassan Abubakar, principal secretary in the Ministry of Investments, Trade and Industry, stated that this partnership is expected to boost the uptake of EVs in Kenya. “The assembly plant will help the transport sector become greener, as we currently have about 4,000 e-vehicles against a population of about 1.7 million cars on the roads,” he said.
Kenya is expanding its EV manufacturing capacity, with assembly plants already in place for electric buses and motorcycles. In April, the Energy and Petroleum Regulatory Authority (EPRA) reported that between July and December 2023, a record 2,694 new EVs were registered, raising the total number of EVs in Kenya to 3,753.
“Electric Mobility is a priority investment area in the transport sector due to its market potential and ability to mitigate climate change,” Abubakar noted. This $20 million investment in an electric vehicle assembly plant in Kenya has the potential to create 3,000 direct and indirect jobs.
In May, President William Ruto announced that for the 2024/2025 budget, “we will eliminate all taxes for the first 100,000 electric cars” manufactured in Kenya. This incentive is aimed at growing the EV market in the country.
On Thursday, Kenya Power stated that with 400KSH (around $3) worth of electricity tokens, “you can charge your electric car to full capacity in under an hour, allowing you to travel up to 240kms.” This distance is equivalent to traveling from Nairobi to Naivasha and back. The e-mobility tariff is designed to promote the adoption of e-mobility in Kenya.
Hai Wei, director of Chery International Central Africa Region, explained that Kenya was selected for the assembly plant because of its skilled workforce and its position as an economic hub in Africa.
The government’s strategy includes incentives aimed at increasing the number of EVs in Kenya. Official data shows the country has 3,753 EVs, with a target of EVs making up 5% of all registered vehicles by 2025. The Finance Bill 2023 granted several incentives to the e-mobility sector, including zero-rated VAT for e-buses, electric motorcycles, and lithium-ion batteries.
Kenya Power is also focused on modernizing the grid to bring stability to the network. The goal is to support the increasing number of EVs and ensure a reliable supply of electricity for charging stations.
This shift towards electric mobility is part of Kenya’s broader goal of reducing greenhouse gas emissions. The country aims to achieve net-zero emissions by 2050, with a significant focus on transitioning to e-mobility. By 2027, all buses in Kenya are expected to be electric, supporting local production and environmental sustainability.
The launch of the assembly plant for electric SUVs in Kenya marks a significant step towards a greener transport sector. The collaboration between Afrigreen Automobile and Chery is set to boost local employment, expand the EV market, and contribute to Kenya’s environmental goals. As the country continues to develop its EV infrastructure, it is poised to become a leading player in the electric mobility sector in East Africa.
Source: ESI Africa
