The uptake of electric vehicles (EVs) in Kenya has grown nearly fourfold since the State introduced a special subsidised tariff in a bid to spur the uptake of the units, as the country seeks to reduce the environmental impact of the transport sector.
Kenya had 4,193 EVs as of the end of December 2024, a growth of 295.9 percent from the 1,059 units that were on the road in December 2023, just before the special tariff for electric vehicles was introduced.
The Energy and Petroleum Regulatory Authority (Epra) introduced an EV tariff of Sh8 and Sh16 per unit for off-peak and peak hours respectively in April last year, a move that helped to protect motorists by ensuring they did not pay more to charge their vehicles.
Prior to the introduction of the tariff, motorists were charged under either the domestic or small commercial tariffs, which were significantly higher.
“The increase in registered EVs may be attributed to government initiatives such as the introduction of the special e-mobility tariff, reduced excise duty on electric vehicles from 20 percent to 10 percent, value added tax (VAT) exemption on fully electric cars and development of charging infrastructure,” Epra Director General Daniel Kiptoo says in a report.
Kenya, like the rest of the world, is in the electric mobility race, aiming to have five percent of all newly registered vehicles to be electric by 2030, as part of global efforts to reduce carbon emissions and curb adverse climate change.
EVs currently on Kenyan roads range from motorcycles, cars used by ride-hailing apps like Uber and Bolt, to buses and minibuses supplied to local public transport operators by local company BasiGo and Swedish-owned Roam.
At 4,193 units, electric vehicles represent 3.7 percent of the 111,665 vehicles (including motorcycles and three-wheelers) that were registered between January and September this year.
Kenya is currently among the top three African economies in terms of electric vehicle uptake, behind South Africa and Morocco.
As of December 2021, there were only 584 registered units, up from 300 a year earlier, reflecting the impact that a lack of supportive policies had had on the sector.
Kenya has aggressively pushed to increase the use of EVs over the past two years, particularly through the introduction of the tariff and funding for Kenya Power to install charging systems across the country.
The EV tariff will remain unchanged until June 2026 when Epra is expected to set new ones, alongside tariffs for other consumption bands. The new tariffs will be in place for three years.
Charging stations
Besides the tariff, Epra published regulations that will see charging stations installed every 25 kilometres on highways in a bid to ensure that long-distance vehicles like sport utility and heavy-duty vehicles such as buses and trucks can charge in most parts of the country.
Currently, most of the charging stations are located in Nairobi and are slowly spreading to other cities like Mombasa and Kisumu. The sharp rise in the use of EVs has since seen the sector recognised as a revenue stream for Kenya Power, with official data showing that the units consumed 1.26 gigawatt hours (GWh) in the year to June 2024, representing 0.01 percent of the 10,472.92 GWh the utility sold in the period.
“Consumption by EVs has been on an upward trajectory, with April 2024 recording the highest usage at 291,216 kWh, while July 2023 saw the lowest at 29,097 kWh. The highest consumption occurred in Nairobi, followed by the Coast region, whereas the least consumption was recorded in the South Nyanza region,” Epra adds.
The lack of charging facilities has been cited as one of the major concerns that hinder the uptake of EVs, including three-wheelers and motorcycles.
Kenya Power has joined KenGen and the private sector, notably owners of shopping malls and start-ups in the EV sector to install charging stations in major cities.
The State-owned electricity distributor mid this year disclosed a budget of Sh258 million over the next three years to buy electric vehicles and build charging stations across the country.
Kenya Power and KenGen have also acquired EVs on a pilot basis and target to increase the units over the next few years, with other State agencies expected to join in the shift.
According to the National Treasury, the State targets to gradually shift from internal combustion engine vehicles (ICEs) to EVs to shield itself from a daily requirement of 15 litres of fuel per vehicle, which translates to Sh90,000 monthly spending or Sh1.08 million.
The Treasury estimates that each EV unit would be charged at Sh508 for a 430-kilometre journey, translating to Sh185,000 annually. This means that one EV unit would save the government Sh894,580 annually on fuel alone.
To kick-start the switch, the Treasury has invited motor vehicle manufacturers, dealers and assemblers to lease EVs to the State to be used by the National Police Service, Kenya Prisons Services, and other security agencies for non-operational security services.
Among the EVs being sought for the State’s vehicle leasing scheme are medium-duty pickups, double cab 4x4, single-cab pick-ups, medium-duty utility passenger vehicles, buses, large trucks, 4x4 heavy-duty utility passenger vehicle caravans and 4x4 medium-duty trucks.
The suppliers will also have to provide charging stations.
The Paris-based International Energy Agency (IEA)— a global agency that gives policy guidelines in the energy sector— says that increased use of EVs is critical to decarbonise road transport, a sector that accounts for over 15 percent of global energy-related emissions.
China and the United States are leading the rest of the world in the deployment of EVs even as IEA rues the lack of a supporting environment to boost uptake of the units in the developing world.
“Sales in some countries, especially developing and emerging countries, have been slow due to typically higher purchase costs compared to conventional vehicles and a lack of charging infrastructure,” IEA says.
