Kenya unveils tax breaks for EV parts and charging stations to speed up
shift to electrics
[February 04, 2026] By
ALLAN OLINGO
NAIROBI, Kenya (AP) — 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.
The market is growing quickly, with the number of registered EVs rising
to 24,754 in 2025 from 796 in 2022, largely driven by increased use of
electric motorcycles, buses and fleet vehicles in urban areas.
Sales of electric vehicles, including motorcycles, buses and private
cars, are forecast to match those of gas and diesel-fueled vehicles by
2042, marking a structural shift in Kenya’s transport system.
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A policeman directs motorists queueing to buy gasoline at one of the
gas stations with fuel still available for sale, in the Hurlingham
neighborhood of the capital Nairobi, Kenya, on April 14, 2022. (AP
Photo/Khalil Senosi, File)
 “We have now laid the foundation for
a cleaner, more efficient, and more sustainable transport system
that fully aligns with our climate commitments,” said Mohammed
Daghar, principal secretary for transport. “With transport a major
contributor to emissions, accelerating electric mobility is
essential to achieving our target.”
Electric mobility policies in most African countries are still
evolving, with interest growing in use of electrics for public and
private transport. Rwanda and Egypt have introduced a mix of fiscal
and non-fiscal incentives to encourage use of EVs. Companies
involved in EV manufacturing and assembly also benefit from
corporate income tax relief and tax holidays.
Still, for many countries the focus is on electric buses and
two-wheelers. Policies include tax exemptions on EV imports and
investments in charging infrastructure, and pilot projects for
electric public transport.
The transition carries risks. Kenya relies heavily on fuel taxes to
fund road maintenance and other transport-related services. The
policy estimates that as electrics displace gas and diesel engines,
there will be a $693 million shortfall in fuel tax collections by
2043, up from a $16.9 million gap in 2025.
Chirchir said the government is studying alternatives, including
road-use charges and possible electricity-based levies linked to
charging stations to offset the decline.
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