Kenya turbocharges e-mobility revolution with plans to import of 20,000 electric vehicles yearly

The initiative of importing more electric vehicles would reduce dependence on fossil fuels, which has contributed to a higher cost of living.

The Roam electric motorcycle factory premises in Nairobi Kenya. PHOTO: Roam

By EB Reporter

In an electrifying move, Kenya has shifted into high gear towards a cleaner, greener future as the country projects to import approximately 20,000 electric vehicles annually to meet growing demand and lighten the burden of using fossil fuels, according to a report released recently. This turbocharged collaboration forms part of efforts in the nation’s steadfast pledge to sustainable development and renewable energy.

The Kenya Economic Report 2023, issued by the Kenya Institute for Public Policy Research and Analysis (KIPPRA), a government think tank, says the initiative of importing more electric vehicles would reduce dependence on fossil fuels, which has contributed to a higher cost of living.

E-mobility is a critical plank in the global push to reduce pollution through the use of clean-powered vehicles that will significantly cut the reliance on diesel and super petroleum.

KIPPRA noted that the 19,952 units would constitute 5 percent of the approximately 400,000 imported vehicles in the country, the majority of which are motorbikes.

“This will result in more electric vehicles, leading to an increased number in the country. Based on this policy direction, this will comprise 5,375 electric motor vehicles, 14,260 electric motor and autocycles, and 317 electric 3-wheelers,” the think tank notes.

According to KIPPRA, the adoption of electric mobility is an innovative way to reduce the burden of fossil fuels and make a positive contribution to lowering transportation costs and thus the cost of living.

Inflation in Kenya dropped to 6.7 percent year-on-year in August from 7.3 percent a month earlier, according to the Kenya National Bureau of Statistics. The Kenyan government has set a preferred inflation band of 2.5 percent to 7.5 percent for the medium term. The decline was attributed to a drop in the prices of food items, while fuel inflation remained high.

KIPPRA observes that having affordable, reliable and efficient transportation reduces transport-related costs across many economic sectors.

It says the adoption of electric mobility speeds up the transition to a low-carbon energy system necessary for affordable and sustainable transportation. By promoting electric mobility, Kenya can acquire a competitive advantage in new technologies and export them to other countries.

The EV market in Kenya is growing as more investors express interest in this market segment. By last year, there were 350 registered EVs in Kenya.

For instance, several public service vehicle companies in Nairobi have acquired EV fleets while Kenya Power less than a fortnight ago invited bids for a supply of EV pick-ups and motorcycles for use at one of its yards in Nairobi.

Public charging stations

The initiative comes hot of heels of the government’s pronouncement to introduce public charging stations to be located every 25 kilometres on highways. The Energy and Petroleum Regulatory Authority(Epra) says in new guidelines of battery charging for electric vehicles (EVs).

“At least one charging station should be available in a grid of three kilometres by three kilometres. Additionally, one charging station shall be set up at every 25 kilometres on both sides of highways/roads” the regulator says.

Epra says long-range EVs such as sport utility vehicles and heavy-duty vehicles such as buses and trucks, there would be at least one fast-charging station with appropriate charging infrastructure at every 100 kilometres, one on each side of the highways or road.

 “Within cities, such charging facilities for heavy-duty EVs shall be located within bus stops. The swapping facilities are also not mandatory within cities for buses or trucks,” Epra says.

An EVs charging port in Nairobi, Kenya. PHOTO: Courtesy

Charging stations have been granted a preferential power tariff of Sh17 per kilowatt-hour (kWh) by Kenya Power as the utility positions itself to cash in on the growing uptake of EVs to boost its electricity sales.

Kenya Power has previously estimated that an average minibus operating in Nairobi would use electricity of about Sh2,400 each day and that it can charge 50,000 buses and two million motorcycles each day.

State entities join the EVs race

KenGen also recently unveiled four EVs to primarily be used for data collection and policy development.

Power producer KenGen further plans to collaborate with the National Oil Corporation of Kenya (NOCK) to install 30 new charging stations in six towns in the next three years to add to the existing two charging stations piloted in Nairobi and Naivasha.

According to Mr David Muthike, KenGen’s general manager of strategy and innovation, one of the challenges facing the transition to e-mobility was charging infrastructure and where to put them hence the roll our.

 “We aim to roll out charging infrastructure and an issue we have noted is the space; where do we get space to put them? So we will be talking to National Oil Corporation to put charging infrastructure in some of their petrol stations.”

NOCK is a State-owned petroleum dealer with fuel stations which are concentrated in Nairobi County.

KenGen unveiled its first four electric vehicles to primarily be used for data collection and policy development ahead of expansion plans.

A fleet of electric vehicles belonging to KENGEN. PHOTO: Courtesy

The listed company has two pilot charging stations and is in the process of installing three more.

“Three more charging stations are underway in Sondu in the Western region, Gitaru in the Eastern region and Kipevu in the coastal region, these stations are for internal use only,” added Mr Muthike.

The roll-out of the charging stations and the data-tracking EVs will guide KenGen’s transition to convert its fleet from petroleum-powered motor vehicles.

Meanwhile, Kenya Power earlier this year began constructing electric charging systems for homes, businesses and the public across the country as the shift to clean transport gathers momentum.

The State-owned power utility is seeking a firm to build an e-mobility network infrastructure system (ENIS) in Nairobi and Nakuru to pilot the charging stations.

Public Transport driving EVs push

In recent times, the public transit sector in Kenya is driving the country’s electric vehicle adoption as global calls for a switch to sustainable transport continue.

Commercial electric mass transport buses were deployed to various routes across Kenya’s capital, Nairobi, marking the beginning of the transition from fossil fuel vehicles for some public bus operators. This came after electric motorcycle taxis, locally known as bodaboda, had already made inroads into the popular two-wheel public transport segment.

The current trend points at the possibility of Kenya’s public transit sector maintaining its leadership of EV adoption, in contrast to most developed countries, where private vehicles are spearheading the transition.

This is likely to continue in the wake of increased production by startups eyeing the public transit sector, and the actualization of proposed tax incentives/exemptions and reliefs like the special power (charging) tariffs.

Kenya is making some strides and has zero rated supply of electric buses, and bicycles, and exempted imported and locally assembled motorcycles from excise duty, in the current finance act.

Numerous EV startups

Many e-mobility startups have set up shop in Kenya to try to put electric vehicles on Kenyan roads, in what may turn the country into a hub for EVs in the continent.

Working to transform areas including public transportation, motorcycles, and taxis, the companies are looking to capitalize on Kenya’s position as a global leader in renewable energy, its wide tech adoption, and the government’s push for electric vehicles through friendly policies.

“Over 70% of our electricity come from renewable energy today. Not at some point in the future. Today. That means actually in this global push to electrify transit everywhere in the world, it would actually have greater impact for us to do it here,” Jit Bhattacharya, co-founder and CEO of the Nairobi-based e-mobility startup BasiGo, was quoted as saying last year.

BasiGo, Opibus, Kiri, EVM Africa, Caetano, and Agilitee Africa are some of the companies pushing for the use of electric vehicles in Kenya.

A Roam Rapid bus at the Kenyatta International Convention Centre., Nairobi. PHOTO: Roam

Kenya is a pacemaker in renewable energy, with 92.3% of electricity generated locally in 2020 coming from hydro, thermal, and wind power—thrice the amount that renewables contributed to electricity generation globally.

The country is also forward-thinking in the electric vehicle space. Only approximately 350 of Kenya’s 2.2 million cars are electric, but the country is looking to increase this number.

Roam rapid and BasiGo, continue to cement their position in the electric vehicle market as the momentum for clean energy solutions to reverse the effects of climate change accelerates.

In December 2022, BasiGo upgraded its fleet to 15 electronic vehicles and aims to have 1,000 by 2025.

“The transition has seen the electric bus company avoid up to 61 metric tonnes of carbon emissions to the environment, and save up to 25,000 litres of diesel over 134 electric kilometres covered,” says the company.

BasiGo started by importing two 25-seat buses from Chinese electric vehicle giant BYD, and began a pilot scheme in March 2022. Operating on a fixed route in Dandora, a neighborhood in east Nairobi, the CEO says the two buses have carried 175,000 passengers and driven over 135,000 kilometers (84,000 miles) to date. “What’s most remarkable is that in that entire time, they’ve had less than two days of technical downtime,” says Bhattacharya.

For the Swedish-Kenyan tech company Roam, it covers a range of 360km on a single charge with its 384-kWh battery. For the bus to return to full capacity, charging will take less than two hours.

Besides Kenya’s green potential, Bhattacharya, sees the country as an ideal entry point for its model due to the country’s huge, booming public transport system, where he finds buses “are most heavily utilized” with high mileages. This, he says, would make Basigo’s work and the electric vehicles beneficial by reducing fuel and and maintenance costs.

“This is where the impact can be greatest,” he says.

Dominique Nkurunziza, Spiro’s chief marketing officer, says, “This is Kenya’s ‘tech-tron’ moment. More EVs mean not just a smaller carbon footprint, but also a healthier, more futuristic Kenya!”

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