Kenya is banking on lowering the cost of electric car parts and charging stations will draw in investors and hasten the transition away from fossil fuels, thus it is pressing for the implementation of tax incentives to hasten the use of electric vehicles.
According to Transport Cabinet Secretary Davis Chirchir, the actions are a part of the recently introduced National Electric Mobility Policy, which now brings Kenya’s transportation industry into compliance with its climate commitments.
“Electric mobility is crucial to reducing greenhouse gas emissions, decreasing reliance on imported fossil fuels, and fostering economic growth through local manufacturing and job creation,” Chirchir said.
Kenya has recently implemented targeted incentives, such as reduced excise taxes on specific electronic vehicles (EVs) and a zero value-added tax on electric buses, bicycles, motorbikes, and lithium-ion batteries. Beginning in July, the new benefits include exemptions from excise taxes and value-added taxes. In 2027, the stamp fee on charging stations will be lowered. By the end of the next year, the government hopes to have 3,000 EVs for its ministries. Under the Paris Climate Agreement, Kenya has pledged to reduce its greenhouse gas emissions by 32% by 2030. Since transportation is a significant source of carbon emissions, electric mobility has been designated as essential.
The market is expanding rapidly; the number of registered EVs climbed from 796 in 2022 to 24,754 in 2025, primarily due to the growing use of electric buses, motorbikes, and fleet vehicles in urban areas. By 2042, sales of electric vehicles—including motorbikes, buses, and private automobiles—are expected to equal those of gas and diesel-powered vehicles, signaling a fundamental change in Kenya’s transportation infrastructure.
“We have now laid the foundation for a cleaner, more efficient, and more sustainable transport system that fully aligns with our climate commitments,” said Mohammed Daghar, principal secretary for transport.
“With transport a major contributor to emissions, accelerating electric mobility is essential to achieving our target.”
The majority of African nations are currently developing their regulations around electric mobility, and interest in using electric vehicles for both public and private transportation is rising. To promote the usage of EVs, Rwanda and Egypt have implemented a combination of fiscal and non-fiscal incentives. Tax holidays and corporate income tax relief are also advantageous to businesses that manufacture and assemble EVs. However, electric buses and two-wheelers are the main focus in many nations. Policies include expenditures in infrastructure for charging EVs, tax exemptions on EV imports, and electric public transportation trial programs.