Kenya News

The Kenyan government has announced a bold set of tax incentives aimed at accelerating the adoption of electric vehicles (EVs) across the country, positioning the transport sector as a central pillar of the nation’s climate action and green industrial strategy.

Transport Cabinet Secretary Davis Chirchir revealed that the incentives are part of the newly launched National Electric Mobility Policy, designed to reduce the cost of EV parts and charging infrastructure in order to attract private investment and speed up the nation’s transition away from fossil fuels.

“Attractive and predictable incentives will lower entry barriers for investors and users alike, enabling Kenya to leapfrog into a clean mobility future,” said Chirchir. “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.”

Tax Breaks to Support EV Ecosystem

Under the policy, key components of the EV value chain , including vehicle parts, charging station equipment, and related inputs, will benefit from reduced taxes and duty exemptions. The move is expected to significantly lower upfront costs for manufacturers and suppliers, encouraging new entrants and expansion of existing players in the green transport sector.

The incentives are also designed to stimulate private investment in charging infrastructure, which has been a stumbling block for EV uptake in Kenya and across much of Africa.

Climate Action and Economic Growth in Tandem

The shift to electric mobility aligns with Kenya’s broader climate commitments, including obligations under the Paris Agreement to cut greenhouse gas emissions. Transport currently constitutes a substantial portion of national emissions, making electrification a high-impact pathway for climate mitigation.

Beyond environmental benefits, the policy envisages economic opportunities through the development of a domestic electric vehicle supply chain. Local assembly and maintenance services, as well as charging infrastructure deployment, are expected to create jobs and diversify Kenya’s industrial base.

A Strategic Positioning in Africa’s EV Landscape

Kenya’s move comes at a time when several African governments are exploring ways to leverage electric mobility not only for climate gains but also for economic competitiveness and technological innovation.

By lowering the cost of EV parts and charging systems, Kenya aims to become a regional hub for clean transport investment, potentially attracting capital from global automakers, renewable energy firms, and impact-driven financiers.

Challenges and Next Steps

While tax incentives are a powerful catalyst, stakeholders say additional enablers such as consumer financing options, skills development for EV technicians, and grid readiness to support charging demand will be critical for sustained uptake.

Industry players and development partners have welcomed the policy, noting that clear regulatory signals can unlock long-term investment commitments in Kenya’s green economy.

As Kenya begins the implementation phase of the National Electric Mobility Policy, the success of these tax incentives will likely serve as a bellwether for clean transport adoption across the region. For MSMEs and innovators in the transport, energy, and manufacturing sectors, the policy opens up new avenues for value creation and participation in a fast emerging market.

Kenya Unveils New Tax Incentives to Drive Electric Vehicle Adoption

03. February 2026/ Urge- DeveWire

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