Electric vehicles are here. So, why are we not buying them?
In the last decade, Kenya has made remarkable strides in the twin sectors of energy and e-mobility, with 97 per cent of its electricity now coming from renewable sources such as geothermal, wind, and solar. The country has more than 5,000 units of registered electric vehicles.
This progress places Kenya firmly on the global map as a leader in sustainable energy, green mobility and development. By shifting its transport sector to fully electric, Kenya could potentially cut emissions even further and solidify its reputation for green innovation.
Thankfully, several Kenyan enterprises have ventured into the e-mobility space. Players such as BasiGo provide electric buses under a pay-per-kilometer plan, allowing operators to avoid the massive initial outlay. Others such as Ebee, Roam (Opibus) and Arc Ride have rolled out electric motorcycles, scooters and conversion kits.
To support this transition, the government has reduced certain excise duties and import taxes on electric vehicles (EV), and various finance laws have presented proposals for VAT exemptions on charging equipment.
But, while these efforts show immense promise, the transition from fossil fuel to electric mobility is far from a straightforward one. Even with the new policies permitting EV imports and offering some tax reliefs, there are still concerns about whether the current regulatory framework truly lowers the cost of electric vehicles or merely signals their viability without creating a compelling financial rationale to make the switch.
Today, the initial cost of an electric vehicle remains out of reach for many Kenyans. Few potential car owners in the country can afford the $38,000 (Sh5 million) expense that a standard electric vehicle costs. That one can acquire a decent standard internal combustion engine (ICE) vehicle at a fifth of the price makes EVs unattractive on the price front.
Yet, even for buyers who can afford this kind of outlay, finding properly trained technicians to handle advanced EV systems is a hassle that often drives maintenance bills upwards over time.
Little wonder, then, that Nopea, an electric taxi venture, folded in 2022. Nopea’s downfall highlighted the financial hurdles of running an EV fleet in a developing market like Kenya as drivers had to deal with a steep downpayment and high lease costs. Meanwhile, the short supply of dependable charging points translated into extra time spent off the road. In the end, operators’ income shrank to below conventional taxi units. Disappointed, many returned the units to the company, which was already facing cash woes. When one of its shareholders became insolvent, the centre could no longer hold.
Despite Kenya’s electricity supply being largely renewable, charging stations are still sparse, especially outside major urban centers like Nairobi, mounting an additional hurdle for motorists. In some instances, costly battery-leasing models negate whatever savings on fuel that riders might anticipate.
Consequently, many early adopters are forced to finance their own charging setups, which entails paying for specialised hardware and possibly upgrading their electrical connections. In zones that offer the service, motorists face lengthy waiting periods, meaning failure to plan one’s itinerary could put one at risk of running out of power mid-journey.
Historically, buses and matatus have dominated Kenya’s public transport sector, often operating within tight profit margins. Withdrawing vehicles from service to recharge or paying extra fees for specialised maintenance can make EVs an unattractive prospect.
Even when fuel prices soar, everyday operating costs for ICE vehicles tend to be more predictable. While electric buses offer lower operating costs in the long run in theory, scarcity of charging infrastructure and few skilled technicians pose a barrage of limitations for operators.
From a driver’s viewpoint, operating a diesel or petrol vehicle is often the more comfortable path. Conventional vehicles are cheaper to buy, easier to service and are supported by a nationwide network of fuelling stations.
But what can Kenya learn from other markets?
In other parts of the world, pre-owned electric cars are a gateway for buyers who cannot afford new ones. Kenya’s eight-year import limit for vehicles, whether diesel or electric, adds another layer of complexity. Although this rule aims to keep older cars out of Kenyan roads, it also restricts the entry of second-hand EVs from the market and thus narrows the choices of cost-conscious consumers eager to go green.
The future of e-mobility in Kenya holds immense promise and cannot be wished away. There are several reasons for this. Foremost, the abundance of clean energy from renewable sources means the country has the means to power our EVs without adding to carbon emissions. Electric vehicles could turn Kenya’s renewable energy advantage into a practical reality for everyday motorists. Secondly, climate-consciousness is growing among Kenyans. More people are inclined to move and operate in a green manner. The number of those with a high disposable income is growing too, with thousands now able to afford an electric vehicle. The government has been keen on regulating the sector through progressive policies and tax exemptions, which could spur the industry to prosperity.
For a seamless transition to electric vehicles, however, Kenya must invest to expand its network of charging infrastructure.
At the same time, to unlock the true potential of e-mobility in Kenya, coordination between the Energy and Transport ministries is critical. Working together would synergise the sector and help to co-develop clear guidelines for trading, purchasing and operating EVs. Collectively, these incentives would attract more investors in the local EV sector.
To this end, the government and private sector players must continue to refine regulations, address infrastructure shortfalls and plug the cost gap. Ultimately, these efforts must seek to change the perception that diesel and petrol are the safer bet for motorists and transport companies.
Perhaps more importantly, there is a need to educate drivers, mechanics and fleet owners on the benefits of going fully electric. If we are going to have a smooth transition from fossil fuel-powered vehicles to those that run on clean energy, converting and influencing the public through awareness would be the place to start.
If ambitious enough, Kenya could merge the ministries of Energy and Transport to pave the way for an inclusive, cleaner mobility framework for the country.
With the right measures in place, Kenya stands at the cusp of being the first African country to integrate green transportation in green energy for long-term green development and success.
Cover photo: A police officer gestures as a public service electric bus is driven past her at the Jomo Kenyatta International Airport in Nairobi on November 1, 2023.
