Kenya is accelerating its green transition with renewed calls to scale up electric mobility (e-mobility), even as experts warn of significant adoption barriers. This emerged during the Inclusive Green Economy in Practice (IGEP) Forum, hosted by EfD Kenya in Nairobi, where policymakers, researchers, and stakeholders discussed the potential for sustainable transport systems.
The transport sector, a major economic driver, is also one of Kenya’s largest carbon emitters. It consumes about 85 percent of imported petroleum products and contributes to environmental pollution, fuel price volatility, and exchange rate fluctuations. Traffic congestion in Nairobi and other cities further reduces productivity and increases transport costs.
“Kenya has a unique advantage because nearly 90 percent of its electricity is generated from renewable sources,” noted forum presenter Baldwin Anyiga. “This provides a strong foundation for the shift to the transport system from the internal combustion engine (ICE) system to electric vehicles (EVs).”
Ambitious targets, slow progress
The government has introduced incentives to spur adoption over the past few years. In the Finance Act 2019, excise duty on EVs was cut by half, from 20 to 10 percent. The 2023 Finance Act amended several acts by zero-rating VAT on electric motorcycles, bicycles, and buses, exempting e-motorcycles from a $100 excise levy, and offering a reduced corporate tax rate of 15 percent from 30 percent for the first 5 years of operation for companies that establish new EV assembly plants.
To lower running costs, a special e-mobility electricity tariff was also introduced in 2023, set at 16 Kenyan shillings (KES) (about 0.12 USD) per kWh during peak hours and just KES 8 (about 0.06 USD) off-peak, compared to about KES 20 (about 0.15 USD) for regular use. Kenya Power and Lighting Company — a state-owned electricity utility —has also committed to expanding charging stations in cities and installing them every 25 kilometers along major highways. Despite this, Kenya remains far from its annual target of 5 percent registered EVs out of the total registered vehicles by 2025, with only 8,097 registered by the end of 2024, which was about 0.2 percent of the total registered vehicles.
Barriers and public perceptions
Participants highlighted high import costs, limited charging infrastructure, and the lack of universal charging systems as key obstacles. Maintenance is also a challenge, with few trained technicians and high repair costs. A public perception survey on EVs by IGE fellows found 80 percent of Nairobi residents would adopt EVs if affordable, citing comfort, quiet rides, and lower operational costs. Financing remains difficult, and leasing models used by companies like BasiGo drew criticism for denying ownership, described by some as “capital colonialism.” Cultural preferences also persist, as some drivers still favor the roar of combustion engines.
Lingering questions
The forum also raised several questions that will shape the future of Kenya’s transport sector. Participants questioned why the private sector has been slow to establish local assembly plants and how the country will manage the disposal of used EV batteries without creating health or environmental risks.
With fuel taxes comprising a significant portion of government revenue, concerns were also voiced about how the government would fill in the gap in tax revenues following reductions in fossil fuel consumption. Additionally, there was a debate over whether Kenya should focus exclusively on expanding electric vehicles or also invest in large-scale alternatives, such as trains, which could more effectively reduce congestion and emissions. Finally, participants also questioned whether the current eight-year age limit on vehicle imports should be applied to EVs, suggesting that a longer window of 12-15 years might make electric cars more affordable and accelerate their adoption.
The road ahead
Momentum is building despite challenges. EV registrations nearly doubled between 2023 and 2024, and demand is surging. BasiGo alone received over 5,000 requests for electric buses, though supply bottlenecks persist. In his closing remarks, Professor Mulwa emphasized collaboration: “This transition cannot be achieved by government alone. It requires partnerships with the private sector, civil society, and international actors to ensure that no one is left behind.”
The forum concluded with a call to action: strengthen charging infrastructure, expand financing and subsidies, and ramp up public awareness. With the right policy, investment, and innovation, Kenya could emerge as a regional leader in e-mobility and take a major step toward an inclusive green economy.
By: Hannah Ngugi