A new policy brief of ZE-Mobility spotlights the electrifying path toward emission reduction and affordable transportation and outlines recommendations to boost electric vehicles uptake in Kenya. Read here the executive summary:
Kenya’s transport sector is a key contributor to economic growth and is expected to experience increased demand due to population growth, industrialisation, and urbanisation. However, this growth comes at a cost, as it contributes to an increase in greenhouse gas (GHG) and carbon monoxide (CO) emissions. To address these concerns, there has been a global push towards sustainable and environmentally friendly transportation options, particularly electric vehicles (EVs), which not only offer a solution to mitigate these negative effects, but bring about cost savings, innovation, and employment opportunities.
Globally, the adoption of EVs has been propelled by enabling policies and increasing national commitments to phase out internal combustion engines (ICE) vehicles. By 2030, it is projected that EV sales will have a 22% market share, up from 13% in 2022. In Africa, the two- and three-wheeler segments dominate the EV industry, while electric buses for public transportation are slowly gaining popularity in some markets. In Kenya, the EV industry is primarily driven by a thriving start-up ecosystem and is seeing increased support from the government. During his 60th Madaraka Day speech, President William Ruto announced initiatives to facilitate ownership of electric 2-wheelers and increase the number of EVs in the country with the goal of reducing transportation costs for the population. These initiatives will benefit Kenya’s transportation sector by unlocking opportunities for job creation, economic growth and the development of local EV industries and charging infrastructure.
However, key challenges such as high purchase costs, inadequate charging infrastructure, limited local innovation, and low awareness levels of EV cost benefits are hindering growth. To address these challenges, this policy brief presents a range of fiscal and non-fiscal policy recommendations that the Kenyan government could implement to increase EV uptake and achieve its goal of 5% of registered vehicles being electric by 2025. Collaboration and active participation of other key stakeholders, including EV operators, financial institutions, industry associations, and development partners, will be crucial for successful implementation of these recommendations.
Below is a summary of proposed fiscal and non-fiscal incentives to promote uptake of EVs, and some of the challenges they seek to address.
About ZE-Mobility
Zero Emissions Mobility Africa (ZE-Mobility) aims to accelerate e-mobility deployment across Africa, with the goal of meeting climate ambitions, promoting inclusive economic development, and improving environmental and health outcomes.
The Carbon Trust and Open Capital established ZE-Mobility to drive the transition to electric mobility in Africa. Working cross-sector as a neutral intermediary with governments, the private sector, investors, and development partners to accelerate the e-mobility transition.
Excerpt of: Accelerating e-mobility in East Africa – A case for Kenya (ZE-Mobility 2023)