NAIROBI, Kenya — Kenya plans to roll out new tax incentives to speed up adoption of electric vehicles, betting that lower costs for vehicle parts and charging stations will attract investors and accelerate a shift away from fossil fuels.
Transport Cabinet Secretary Davis Chirchir said the measures are part of a newly launched National Electric Mobility Policy, which now aligns the transport sector with Kenya’s 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 in recent years introduced targeted incentives, including a zero value added tax on electric buses, bicycles, motorcycles and lithium-ion batteries, and lower excise duties on selected EVs. The new incentives include exemptions for value-added taxes and excise duties beginning in July. The stamp tax for charging stations will be reduced in 2027.
The government has a target for 3,000 EVs for its ministries by the end of next year.
Kenya has committed to cutting its greenhouse gas emissions by 32% by 2030 under the Paris Agreement treaty on climate change, with electric mobility identified as vital since transport is a major contributor to carbon emissions.