NAIROBI, Kenya — The Kenyan government has unveiled comprehensive tax incentives as part of its newly launched National Electric Mobility Policy, aiming to dramatically accelerate the adoption of electric vehicles across the nation. The strategic measures include exemptions for value-added taxes and excise duties on EV components beginning this July, followed by a reduction in stamp taxes for charging stations in 2027.
Transport Cabinet Secretary Davis Chirchir emphasized that electric mobility represents a critical pillar in Kenya’s broader climate strategy. “This transition is fundamental to reducing greenhouse gas emissions, decreasing our dependency on imported fossil fuels, and stimulating economic growth through domestic manufacturing and employment opportunities,” Chirchir stated.
Kenya’s commitment to electric transportation builds upon previous initiatives, including zero value-added tax on electric buses, bicycles, motorcycles, and lithium-ion batteries. The government has set an ambitious target of deploying 3,000 electric vehicles within its ministries by the end of next year.
This policy shift aligns with Kenya’s Paris Agreement pledge to cut greenhouse gas emissions by 32% before 2030. With transportation accounting for a substantial portion of carbon emissions, electrification has been identified as essential for meeting climate objectives.
The market response has been remarkably positive, with registered electric vehicles skyrocketing from just 796 in 2022 to 24,754 in 2025—primarily driven by electric motorcycles, buses, and commercial fleet vehicles. Projections indicate that electric vehicle sales could equal those of traditional gasoline and diesel vehicles by 2042, signaling a profound transformation in Kenya’s transportation landscape.
Mohammed Daghar, Principal Secretary for Transport, characterized the policy as “laying the foundation for a cleaner, more efficient, and sustainable transport system that fully aligns with our climate commitments.”
While Kenya emerges as a regional leader in electric mobility, the transition presents fiscal challenges. The government anticipates a potential $693 million shortfall in fuel tax revenues by 2043—critical funding currently dedicated to road maintenance and transportation services. Authorities are exploring alternative revenue mechanisms, including road-use charges and electricity-based levies connected to charging stations.
Across Africa, electric mobility policies continue to evolve, with Rwanda and Egypt implementing various fiscal incentives to encourage EV adoption. Most initiatives currently focus on electric buses and two-wheelers, incorporating tax exemptions for EV imports and investments in charging infrastructure.