Tackling Transport Emissions in Kenya
Kenya, much like its counterparts in the Global South, is striving to cut its carbon footprint as part of broader climate change mitigation efforts. Globally, the transport sector accounts for around 20% of greenhouse gas emissions, with road transport responsible for three-quarters of that—roughly 3 billion metric tonnes each year.
In Kenya, transitioning to electric mobility is a critical step toward a cleaner future. However, the shift is hampered by a lack of infrastructure, regulatory uncertainty, low consumer awareness, and a shortage of skilled professionals. With the fight against climate change becoming more urgent, Kenya’s success in promoting electric mobility (e-mobility) will hinge on effectively tackling these barriers.
Research Methodology
This study adopted a mixed-methods approach, utilizing both quantitative data from institutions like the Ministry of Roads and Transport, NTSA, KEBS, EPRA, and KPLC, and qualitative data from expert interviews. Additional secondary research from academic and media sources was used to contextualize findings. The goal: to identify policy gaps and recommend realistic strategies for scaling up electric vehicle adoption in Kenya.
E-Mobility Trends in Kenya
Electric mobility is gradually gaining traction in Kenya. Between 2018 and 2023, registered EVs jumped from just 65 to over 4,000 units, with electric motorcycles and bicycles showing the most growth. NTSA data from 2023 indicates that EVs now account for about 2.4% of new vehicle registrations—a significant increase from under 0.1% in earlier years.
Fiscal incentives such as reduced excise duty (from 20% to 10%) and VAT exemptions on fully electric cars, coupled with the introduction of a special electricity tariff for EV charging, have contributed to this growth. Motorcycles and bicycles dominate the EV space, while electric buses are starting to make a small but notable presence. Nairobi leads adoption, largely due to better access to charging and battery-swapping infrastructure.
Despite this progress, the sector’s full potential remains untapped due to numerous systemic challenges.
Key Barriers to E-Mobility Adoption
1. Limited Charging Infrastructure
While the 2019 Energy Act mandates infrastructure development, only 29 charging stations were available by early 2022. Most are slow Level 2 chargers, leading to long queues and range anxiety. Power outages and unreliable electricity supply further discourage usage.
2. High Energy Costs and Infrastructure Investment
Although Kenya’s power supply is over 80% renewable, nearly 30% of the population—especially in rural areas—lacks access. Frequent blackouts (measured by a rising SAIFI index) and high installation costs for charging stations (ranging from $800 to $80,000 depending on type) are major barriers. The lack of interoperability among charging equipment from different manufacturers adds another layer of complexity.
3. Policy Gaps and Poor Coordination
The Draft National E-Mobility Policy, launched in 2024, outlines plans for charging infrastructure, tax incentives, and public transport electrification. However, the policy underrepresents county governments, which are responsible for 72% of roads. This exclusion, combined with poor inter-agency coordination and lack of alignment with related policies (e.g., energy, transport), limits effective implementation. Additionally, the policy neglects alternative energy solutions like solar power and the electrification of rail transport.
4. High Importation Costs and Policy Inconsistencies
EVs remain expensive due to high import duties and taxes. While some taxes were reduced in 2023, others increased—such as the EAC duty hike to 35% for certain EV categories. The proposed 2024 Finance Bill attempted to impose a 16% VAT on electric buses, but it was eventually dropped following public opposition.
Unlike Ethiopia—which has eliminated import duties and VAT for EVs—Kenya has yet to adopt similarly aggressive incentives. Moreover, inefficiencies at the Kenya Revenue Authority, particularly regarding HS codes and CRSP (Current Retail Selling Prices), complicate EV importation. Currently, only the Nissan Leaf is officially recognized in CRSP, creating delays and uncertainties for importers.
5. Workforce Skills Shortage
Kenya lacks the skilled labor force needed to design, assemble, and maintain electric vehicles. Few institutions offer training on EV technologies, and most mechanics are only versed in internal combustion engines. IRENA estimates that Africa will need 2 million trained professionals in green energy by 2030, underscoring the urgent need for curriculum reform and industry partnerships.
6. Low Public Awareness
Despite high interest (72% of Kenyans say they’re open to e-mobility), actual uptake remains limited due to inadequate public education. Sporadic and underfunded awareness campaigns have left many skeptical of EVs. The 2023 Finance Act missed an opportunity to allocate sufficient funds to address this.
Conclusions
Kenya is poised to lead in Africa’s green transport movement, but several bottlenecks persist. Inadequate infrastructure, weak policy coordination, high costs, limited public engagement, and workforce shortages must be addressed systematically. National and county governments must collaborate to streamline planning, improve energy access, and accelerate the development of EV support systems.
Policy Recommendations
Long-Term Actions
- Finalize and implement the Draft National E-Mobility Policy.
- Establish a revolving fund to support counties in financing e-mobility, including subsidies for electric two- and three-wheelers.
- Integrate EV technology into technical and higher education curricula, including structured internships and certification programs.
Medium-Term Actions
- EPRA should enforce charging station standards and coordinate battery-swapping infrastructure.
- The Supreme Court should fast-track decisions on the Finance Act 2023 to clarify its impact on e-mobility.
- Collaborate across ministries (e.g., Land, KENHA, KURA, EPRA, and KPLC) to secure land and power for charging stations.
Short-Term Actions
- Lower and simplify import duties; streamline vehicle classification procedures.
- Improve KRA and NTSA capacity to classify EVs and understand CRSP/HS codes.
- Encourage academic research and publication on e-mobility to increase investor and consumer confidence.
- Revise the national energy policy to include green hydrogen and other renewable charging solutions.
Kenya has the opportunity to lead East Africa into a sustainable transport future—but doing so will require bold policy shifts, cross-sector collaboration, and meaningful investments in infrastructure, education, and awareness.
