Kenya to Produce 200K Electric Motorcycles By 2024

Samwel Eviator

Kenya is gearing up for a green transportation revolution, as President William Ruto announced a bold plan to bolster the production of electric motorcycles and vehicles in the country.

Speaking yesterday during a visit to the Roam Park motorcycle assembly plant, the President emphasized his administration’s commitment to scaling up the production of e-motorbikes from the current 2,000 to an impressive 200,000 by the end of 2024.

“We want to have over 200,000 electric boda bodas by the end of next year. We have agreed with some companies, and that is why we have reduced five different taxes,” He said.

A man rides an electric motorcycle from Ampersand on a test drive in Nairobi, Kenya, Jan. 23, 2023. Electric motorcycles are gaining traction in Kenya as private sector-led firms rush to set up charging points and battery-swapping stations to speed up the growth of cleaner transport and put the east African nation on a path toward fresher air and lower emissions. [Photo/Courtesy]

In a bid to make electric vehicles more affordable and encourage their widespread adoption, the Kenyan government has formulated a strategic plan to cut production costs by reducing taxes.

President Ruto explained that the Finance Act, proposed by the Kenya Kwanza regime, will play a pivotal role in achieving this goal.

Key among the measures is the removal of Value Added Tax (VAT) on spare parts, batteries, and all charging equipment for e-bikes.

Furthermore, VAT for electric boda bodas will be reduced by 16 per cent, effectively making these eco-friendly rides more accessible to the general public.

“We have policy intervention in our Finance Bill specifically targeting e-mobility, our boda boda people specifically because they contribute almost Ksh.1 billion to the economy every day,” President Ruto remarked, underlining the significance of this move for both the environment and the economy.

**President William Ruto speaks when he visited the Roam Park motorcycle assembly plant on July 25, 2023. [Photo/Courtesy]**

The comprehensive policy interventions also include zero-rating on all e-bikes and motor vehicle spare parts, along with the removal of taxes on charging equipment, batteries, lithium, and all components used in e-mobility manufacturing.

Electricity costs at charging stations will be significantly reduced to empower riders to maximize their profits while spending less on charging their e-bikes, thereby fostering a conducive environment for electric mobility adoption.

“You can see just by intervening in a minimal way, we can be able to bring down the cost of our e-mobility infrastructure by between 16 and 20 per cent just by adjusting taxes here and there. We need a tax infrastructure globally that is going to respond to climate change financing that we’re looking at.” President Ruto added.

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