KENYA E-MOBILITY MARKET

Major Kenya E-Mobility Market Drivers

The Kenya E-mobility market is estimated to rise due to a growing footprint of carbon, favorable government policies, rising awareness of negative impact of greenhouse gases on the environment, and increasing demand for the building of charging infrastructure and autonomous transportation. The transport sector of Kenya is a contributor to greenhouse gas releases, owing to its dependency on fossil fuels. In addition to this, commitment of the government to climate improvement, the country has established a target of minimizing emissions in the transport sector by 3.46 metric tons of carbon by the year 2030. The initiative by the government has different measures to encourage the adoption of e-mobility. These include establishing electric vehicle standards, decreasing excise tax on these vehicles from 20% to 10%, and partnering with development partners including UNEP to adopt pilot programs assessing the increase, and difficulty of e-mobility adoption. Moreover, under Kenya’s Nationally Determined Contributions for 2020 and the National Climate Change Action Plan, e-mobility is actively prioritized.

The dedication of the government has actively contributed to the momentum surrounding e-mobility. This commitment aligns with its pledge at COP26 to transition to zero-emission vehicles and its internal aim of confirming that 5% of all newly registered vehicles are EVs during 2025. While these objectives may still be distant, they signify political goodwill and a commitment to improving e-mobility integration in Kenya. As per the National Transport and Safety Authority, a total of 671 EVs are presently registered across Kenya. Among these, motorcycles comprise approx. half the share at 324, motor vehicles stand at 128, and 3-wheelers at 105. The remaining vehicles fall under different ‘other’ categories.

Despite being in its early stage, a dynamic e-mobility startup ecosystem is developing in Kenya. Over the past few years, >50 startups have entered the space, with investments totaling USD 26 million in new funding during 2021. Present advancements include the emergence of different EV delivery, the establishment of at least 6 e-bike assembly enterprises, and ride-hailing services, different firms engaged in shifting fossil fuel vehicles into EVs, and the interference of infrastructure local associations and developers. Additionally, the Government in Kenya is introducing different rules and regulations to lessen the footprint of carbon and fight climate change. Furthermore, different scrapping policies are being introduced for traditional vehicles powered by fossil fuels. Hence, with rising uncertainty surrounding the acceptance and continuous usage of such automobiles, consumers are favoring EVs. This shift in preference is projected to foster market expansion in the forecast period.