Kenya’s electric vehicle (EV) sector experiences remarkable growth with a record number of registrations in the past six months. The Energy and Petroleum Regulatory Authority (EPRA) reports a surge, attributing it to government initiatives and favorable energy conditions.
According to EPRA’s latest report covering July to December 2023, Kenya saw a significant increase in EV registrations, with 2,694 new EVs added to the roads. This brings the total number of EVs in the country to 3,753, signaling a growing interest in electric mobility. The recent launch of Kenya’s first E-mobility Draft Policy marks a pivotal moment for the nation’s transportation sector. The policy aims to guide the development of electric mobility across various modes of transport, providing a framework for transitioning from conventional internal combustion engine (ICE) vehicles.
Kenya’s energy landscape, characterized by nearly 85% renewable energy sources, provides a conducive environment for e-mobility. The country’s push to decarbonize the transport sector aligns with its renewable energy advantage, with expectations of increased energy demand during historically low-demand periods. In a bid to further incentivize the adoption of electric transportation, EPRA introduced a special tariff for e-mobility effective from April 1, 2023. This move contributed to a notable increase in energy consumption by the electric mobility consumer category, soaring by 160% from July to December 2023.
As of December 2023, EVs accounted for 1.62% of total vehicle registrations for the year. Kenya aims to raise this figure to 5% by 2025, in line with its National Energy Efficiency and Conservation Strategy. Government initiatives play a pivotal role in driving EV adoption in Kenya. Reduction of excise duty on EVs from 20% to 10% and exemption of fully electric cars from value-added tax have incentivized consumers to opt for electric vehicles.
Moreover, Kenya has made strides in infrastructure development to support EVs. In September 2023, the country established a framework for EV charging and battery swapping infrastructure. This initiative aims to accelerate EV adoption by ensuring the availability of safe, reliable, accessible, and affordable charging services nationwide.
Kenya’s burgeoning EV sector reflects a broader global trend towards sustainable transportation solutions. With supportive government policies and a favorable energy landscape, Kenya is poised to play a significant role in the transition to electric mobility, contributing to a greener and more sustainable future.
