EV Uptake Surge in Kenya: How Special Power Tariffs Drive the Revolution

In recent years, Kenya has witnessed an impressive surge in electric vehicle (EV) uptake, driven by targeted policy interventions, particularly the introduction of special power tariffs for EV owners. The adoption of EVs is not just a win for environmental sustainability but also a testament to the country’s commitment to leveraging clean energy solutions. Let’s dive into the data and explore the factors fueling this transformation.

A Rapid Growth in EV Adoption

According to data from the Energy and Petroleum Regulatory Authority (EPRA), the cumulative number of registered EVs in Kenya has grown significantly over the past five years:

This represents a 21-fold increase from 2019 to 2024, with the steepest growth observed between 2022 and 2023. The data highlights a turning point when policies and incentives aligned with technological advancements and consumer awareness.

Special Power Tariffs: The Game Changer

A key driver behind this surge is the introduction of special power tariffs for EV owners. In April 2023, the Energy and Petroleum Regulatory Authority (EPRA) introduced EV tariffs of Sh8 and Sh16 per unit for off-peak and peak times, respectively. This move was designed to protect motorists by ensuring they do not pay exorbitant rates when charging their vehicles. Prior to this, EV owners were charged under either domestic or small commercial tariffs, which were significantly higher. These new tariffs have:

• Lowered Charging Costs: Encouraging more drivers to transition to electric.

• Provided Time-of-Use Pricing: Incentivizing charging during off-peak hours to optimize energy use and reduce grid strain.

  
  

Additional Incentives Driving EV Uptake

Kenya’s government has implemented several other measures to boost EV adoption:

• Reduced Excise Duty: The excise duty on electric vehicles was reduced from 20% to 10%, making EVs more affordable for consumers.

• VAT Exemption: Fully electric vehicles are now exempt from Value Added Tax, further lowering their purchase cost.

• Charging Infrastructure Development: EPRA has published regulations mandating the installation of charging stations every 25 kilometers along highways. This ensures that long-distance vehicles can charge conveniently in most parts of the country.

  
  

Electric Vehicles: A Revenue Stream for Kenya Power

The sharp rise in EVs has also positioned the sector as a potential revenue stream for Kenya Power. Official data shows that EVs consumed 1.2 gigawatt-hours (GWh) of electricity in the year ending June 2024. Although this accounts for just 0.01% of the total 10,472.92 GWh, it reflects a promising start. Recognizing this opportunity, Kenya Power has allocated a budget of Sh258 million over the next three years to purchase electric vehicles and build charging stations across the country. This strategic move underscores Kenya Power’s commitment to supporting the growing EV ecosystem.

Kenya Among Africa’s Leaders in EV Adoption

These strategic interventions have propelled Kenya into the top three African countries leading EV adoption, alongside South Africa and Morocco. This achievement underscores Kenya’s growing influence in the electric mobility revolution and its ability to inspire other nations in the region.

Why Kenya’s EV Surge Matters

1. Environmental Impact: Transitioning to EVs reduces greenhouse gas emissions, aligning with Kenya’s commitment to achieving its climate goals under the Paris Agreement.

2. Energy Independence: Kenya’s energy grid is powered predominantly by renewable sources like geothermal and hydroelectric power. EVs amplify the benefits of this clean energy.

3. Economic Opportunities: The growth of the EV market creates jobs in manufacturing, infrastructure development, and maintenance, fostering economic growth.

4. Urban Mobility Solutions: With rising fuel prices, EVs offer an economical alternative for both public and private transportation in Kenya’s bustling cities.

   
   

Challenges and the Road Ahead

Despite the rapid growth, challenges remain:

• Charging Infrastructure: While significant progress has been made, rural areas still lack adequate charging stations.

• High Upfront Costs: The initial cost of EVs remains a barrier for many potential buyers.

• Public Awareness: Continued efforts are needed to educate consumers on the long-term benefits of EV ownership.

To sustain this momentum, Kenya must invest in localized manufacturing of EV components, further subsidize EV purchases, and enhance grid capacity to support future demand.