Kenya Boosts Electric Mobility Push with Significant Financial Enhancements
Kenya Embraces Electric Mobility: A Journey Towards Sustainability
Kenya is making significant strides in adopting electric vehicles (EVs), positioning itself as one of the most dynamic EV markets in East Africa. The country's approach to EV adoption combines international financing, private-sector innovation, and government policy reforms.
In August 2025, Kenya secured a 25-billion Japanese yen (approximately USD 168 million) Samurai loan from Japan. A portion of this loan will be used to strengthen fiscal stability, with the remainder directed to the Ministry of Energy to upgrade the national grid. USD 102 million will also be allocated to the Ministry of Investment, Trade and Industry (MITI) to boost local EV manufacturing and assembly.
The upgraded national grid and expanded charging infrastructure are key components in laying the foundation for a sustainable electric mobility ecosystem. Kenya Power plans to install 45 new charging stations across six counties in the coming year. Charging tariffs are competitively priced at KSh 17 per unit (approximately USD 0.13).
The Kenyan government has introduced reduced import duties and waived VAT on EVs, making them more affordable for consumers. Projections suggest that 30% of new vehicle sales in Kenya will be electric by 2030. Local banks are offering specialized low-interest loan products for EV purchases, further encouraging the uptake of these vehicles.
The EV sector in Kenya has experienced significant growth. In 2018, there were just 65 registered EVs, a figure that grew to 4,047 units in 2023, making up 1.62% of all vehicle registrations that year. As of December 2024, there were approximately 9,000 registered EVs in the country.
Entrepreneurial momentum is also driving Kenya's EV revolution. BasiGo, a public transport company specializing in electric buses, recently closed a USD 42 million funding round. Roam, a local manufacturer of electric motorcycles and buses, raised USD 24 million in Series A funding. These companies are aiming to deploy thousands of electric vehicles across East Africa, with BasiGo targeting 1,000 electric buses.
Kenya's commitment to electric mobility is reflected in its target of 5% EV penetration by 2025. As the country continues to invest in its EV infrastructure and support local manufacturers, it is well on its way to becoming East Africa's electric mobility hub.
For those interested in the tech journey in Kenya and across Africa, our website offers a platform to connect with African founders, investors, venture capitalists, tech leaders, and industry decision-makers.
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