Industry leaders describe electric mobility as essential for reducing emissions, lowering imported fossil fuel dependence, and boosting local manufacturing and jobs, with a long-term forecast that EVs will match traditional vehicles by 2042.

Kenya launches a National Electric Mobility Policy that offers tax incentives, including exemptions from value-added tax and excise duties for EV parts and charging infrastructure starting mid-year, with stamp tax on charging stations reduced in 2027.

Registrations show rapid EV growth, rising from 796 in 2022 to 24,754 in 2025, led by electric motorcycles, buses, and fleet vehicles in urban areas, with expectations that electric vehicles will reach parity with gas/diesel vehicles by 2042.

Kenya aims to have 3,000 EVs in use by its ministries by the end of next year as part of a broader shift toward cleaner transport to meet climate commitments and cut greenhouse gas emissions.

Transport officials highlight electric mobility as a driver of climate goals and economic growth, while noting policy risks and the need for sustainable financing.

High-level transport leaders emphasize electrification will support cleaner, more efficient transport and help achieve climate targets.

The transition carries fiscal risks: reduced fuel tax receipts from electrification could create a projected $693 million shortfall by 2043, prompting consideration of road-use charges and electricity-based levies for charging stations.

Despite gains, the policy faces challenges, including the projected fuel tax revenue shortfall by 2043, which will drive exploration of new charges to offset losses.

Policy planners acknowledge potential revenue shortfalls from fuel tax as EV adoption grows, estimating a gap of about $693 million by 2043 (up from $16.9 million in 2025) and are exploring alternatives such as road-use charges and electricity-based levies on charging stations.