By Abbas Nazil
The Electric Mobility Association of Kenya (EMAK) has released a comprehensive white paper proposing critical fiscal and policy interventions to accelerate the country’s transition to electric mobility.
The document outlines a roadmap for transforming Kenya’s transportation sector by creating a favorable policy environment that reduces costs, attracts investment, and supports local manufacturing.
It comes at a time when the electric vehicle (EV) movement in Kenya is gaining traction, particularly in the motorcycle sector, which accounts for over half of the country’s vehicle fleet.
According to the white paper, Kenya faces multiple challenges in local EV manufacturing, including high costs of raw materials and tooling, limited economies of scale, regulatory burdens, and high energy prices.
For example, locally produced motorcycle components like crash guards can cost up to ten times more than imported equivalents due to inefficiencies and lack of automation.
Additionally, local manufacturers are burdened with multiple taxes such as VAT, import duties, excise taxes, and logistical delays, while foreign manufacturers benefit from streamlined processes and government subsidies.
To address these disparities, EMAK recommends a tiered system of fiscal incentives. Proposed measures include full tax exemptions on electric vehicles, batteries, and charging infrastructure, as well as special tax frameworks for large investors.
These incentives aim to lower the total cost of EV ownership, catalyze local value addition, create jobs, and attract foreign direct investment.
EMAK also supports targeted interventions under the “Buy Kenya, Build Kenya” policy to strengthen the domestic assembly and manufacturing sector.
The white paper models three adoption scenarios—Low, Moderate, and High Government Support—between 2025 and 2040.
The High Support scenario, which includes full tax incentives, supportive charging tariffs, and financing schemes, could see the number of EVs rise to over 2 million by 2040, compared to just 500,000 under Low Support.
In particular, electric motorcycles could surge to 1.5 million units under High Support, quadrupling the adoption rate compared to the low scenario.
Additionally, CO₂ emissions avoided could exceed 3.2 million metric tons, and fuel revenue losses of USD 1.4 billion could be offset by increased electricity consumption and EV-related revenues.
Currently, electric two-wheelers lead Kenya’s EV adoption, followed by electric tuk-tuks, buses, and cars.
In 2024, 7% of new motorcycles registered were electric, signaling the sector’s potential to drive sustainable transportation.
EMAK’s recommendations reflect a bold and strategic vision to establish Kenya as a regional leader in electric mobility, powered by local innovation and public-private collaboration.