Kenya is positioning itself as a regional leader in the transition to electric mobility, backed by international financing, private-sector investments, and government incentives.

In August 2025, the country secured a landmark 25-billion Japanese yen (≈ USD 168 million) Samurai loan from Japan, with a seven-year tenure. The funds will be distributed across multiple sectors: USD 102 million will go to the Ministry of Investment, Trade and Industry (MITI) to boost local EV manufacturing and assembly, supporting domestic vehicle makers and spare parts producers while reducing reliance on imported used cars. Another USD 37,000 will be directed to the Ministry of Energy to upgrade the national grid, including installing high-efficiency transformers to cut transmission and distribution losses—seen as essential for supporting EV charging infrastructure. The remainder will be used for general budget support to strengthen fiscal stability.

Private Sector Momentum

Beyond state-level agreements, Kenya’s private sector is attracting significant capital inflows into electric mobility.

• BasiGo, a public transport company specializing in electric buses, recently closed a USD 42 million funding round led by Africa50. The company aims to deploy 1,000 electric buses across East Africa.
  
• Roam, a local manufacturer of electric motorcycles and buses, raised USD 24 million in Series A funding, which included a debt commitment from the U.S. International Development Finance Corporation.
  

These investments highlight growing confidence in Kenya’s EV startups, which are playing a critical role in expanding electric transport across both public and private sectors.

Policy Incentives and Financing

The Kenyan government has introduced reduced import duties and waived VAT on EVs, making electric vehicles more affordable to consumers. A national charging network is being developed in parallel, with Kenya Power planning to install 45 new charging stations across six counties in the coming year. Charging tariffs are competitively priced at KSh 17 per unit (≈ USD 0.13), significantly lower than household electricity rates.

Local banks are also stepping in, offering specialized low-interest loan products for EV purchases. This combination of tax breaks, infrastructure development, and financing options is creating a conducive ecosystem for accelerating adoption.

EV Growth and Market Context

Kenya’s EV sector has shown strong momentum over the past five years:

• EV registrations grew from 65 units in 2018 to 4,047 in 2023, making up 1.62% of all vehicle registrations that year. The government has set a target of 5% by 2025.
  
• As of December 2024, the country had about 9,000 registered EVs, including cars and motorcycles.
  
• Projections indicate that 30% of new vehicle sales in Kenya will be electric by 2030.
  

At the continental level, Africa’s EV market was valued at USD 15.94 billion in 2024 and is forecast to grow to USD 38.4 billion by 2033, at a compound annual growth rate (CAGR) of 10.3%. Kenya’s rapid uptake positions it as one of the region’s most dynamic EV markets.

Kenya’s approach blends international financing, private-sector innovation, and government policy reforms to accelerate EV adoption. By simultaneously strengthening its grid, expanding charging infrastructure, and supporting local manufacturers, the country is laying the foundation for a sustainable electric mobility ecosystem.

Challenges remain—including scaling infrastructure fast enough, keeping EVs affordable, and ensuring regulatory stability—but Kenya’s combination of policy support, financing, and entrepreneurial momentum suggests it is well on its way to becoming East Africa’s electric mobility hub.

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