In the Naivasha Special Economic Zone in the Rift Valley region of Kenya, a bold industrial experiment is underway. By January 2026, TAD Motors, led by Ethiopian-born engineer and entrepreneur Tadesse Tessema, plans to begin assembling Kenya’s first mass-market electric vehicles. The company has secured four acres in the zone and committed between KSh 780 million and KSh 1.3 billion in phased investment.
The ambition is to move beyond mere assembly. In its first three years, the plant will rely on complete knock-down kits, but the goal is to raise local content to 60 per cent, and eventually 80 per cent, as domestic suppliers mature. Annual output is targeted at 3,000 units. The first models, Makena and Amani, will be followed by Dhahabu, Taji, and Fahari, all designed for Kenyan roads and climates. Prices are expected to range between KSh 1.3 million and KSh 1.5 million, placing them in direct competition with the imported second-hand cars that dominate the market.
Kenya’s electric mobility sector is still in its infancy. Motorcycles account for most EV registrations, while three- and four-wheelers are slowly gaining ground. Government incentives, reduced import duty of 10 per cent for EVs, zero excise duty, VAT exemptions, and a special e-mobility electricity tariff, have helped, but adoption remains slow. The main obstacles are high upfront costs, limited charging infrastructure, and the steady influx of cheaper used imports.
Tessema believes Kenya offers a rare combination of advantages: a grid powered largely by renewables, tariff support for EVs, and an industrial policy that favours local assembly. His vehicles will feature onboard chargers compatible with standard household sockets, a deliberate choice to bypass the country’s sparse public charging network.
“Those three pillars, clean power, tariff support, and industrial policy, make Kenya ideal for affordable EVs built for African roads,” he told The Star.
The Naivasha Special Economic Zone is central to the plan. Established to attract both domestic and foreign investment, it offers tax breaks, streamlined customs, and proximity to the standard gauge railway. President William Ruto has championed it as a hub for automotive and manufacturing growth, with the potential to stimulate local parts industries and create thousands of jobs.
Yet the road ahead is steep. More than 80 per cent of Kenya’s annual vehicle sales are used imports. Financing for EVs remains limited, and consumer awareness is uneven. TAD Motors is lobbying for clear national charging standards, expanded credit guarantees, and consistent application of the e-mobility tariff. Without these, the economics of local EV production could falter.
If the venture succeeds, it could mark a turning point in Kenya’s industrial story – from a passive consumer of imported technology to an active producer of vehicles designed for its own market. It would also test whether local manufacturing can compete with the cultural and economic pull of used imports. The gamble is as much about policy and perception as it is about engineering.
Sidebar: How TAD Motors compares in Africa’s EV assembly race
| Country & Project | Launch Timeline | Local Content Target | Annual Output Goal | Market Focus | Notable Features |
|---|---|---|---|---|---|
| Kenya – TAD Motors (Naivasha) | 2026 start; aims for 80% local content by early 2030s | 60% within 3 years; 80% long-term | 3,000 units | Small sedans & SUVs | Onboard chargers for standard sockets; priced to compete with used imports |
| South Africa – BMW & Ford EV Lines | Ongoing upgrades to existing plants | ~40% local content | 50,000+ units (export-heavy) | Passenger & commercial EVs | Strong export orientation; backed by mature auto sector |
| Morocco – Stellantis & Renault EV Plants | Scaling since 2023 | 60%+ local content | 200,000+ units | Compact EVs for Europe & Africa | Integrated battery supply chain; port access for exports |
| Rwanda – Ampersand & Volkswagen e-Mobility | Since 2019 | 30–40% local content | Thousands of e-motorcycles & e-buses | Urban transport | Government-backed charging hubs; focus on two- and three-wheelers |
| Egypt – El Nasr Automotive EV Project | Planned 2026 | 50% local content | 25,000 units | Affordable sedans | Partnership with Chinese EV makers; domestic market focus |
Call to Action:
Kenya’s EV future will not be built in factories alone. Policymakers must lock in stable incentives, financiers must design products for first-time EV buyers, and consumers must weigh long-term value over short-term savings. The choice is not only about what powers the car, but about who builds it – and for whose benefit.
Curated by Ethical Business Analysis Desk
