Kenyas new National Electric Mobility Policy is a long-awaited framework packed with tax incentives and ambitious targets designed to catapult the country into a regional leader in electric transportation. The policy arrives amid explosive growth in the sector and aims to tackle the countrys massive fuel import bill, but also raises questions about execution in a market where ambitious climate ventures have recently faltered.
The government has zero-rated Value Added Tax VAT on electric buses, bicycles, motorcycles, and lithium-ion batteries, and eliminated excise duty on the latter three . Further tax breaks for EV parts and charging stations are set to begin in July 2026 . The most visible change is the introduction of distinctive green reflective license plates for all fully electric vehicles, a move Transport Cabinet Secretary Davis Chirchir called a signature of national climate commitment .
Kenyas petroleum import bill hit a staggering KES 628.4 B USD 4.8 B in 2023 , the countrys largest import expense . This reliance drains foreign exchange and exposes the economy to global fuel price swings. The policy estimates that as EVs displace petrol and diesel engines, the government could face a USD 693 M annual shortfall in fuel tax revenue by 2043, a gap it may need to fill with road-use charges or electricity levies .
