The Kenyan government is preparing tax incentives that will encourage the development of ecological mobility and the reduction of atmospheric pollution from 2024. In Nairobi and the other 46 counties, the Kenyan National Treasury intends to reduce taxes and customs fees on “the importation, local assembly or sale of electric vehicles.” The policy will be codified in the Finance Act 2024 following approval by legislators and local authorities. At least 350 electric cars and bikes will initially be introduced thanks to the tax advantages, according to Kenya’s Energy and Petroleum Regulatory Authority (EPRA).
The 2.2 million thermal vehicles that pollute the air in the nation of East Africa should gradually be phased out as a result of this.
The Hustler Fund, established in December 2022 by President William Ruto, will be used by the Kenyan government to fund this transition, according to the Cabinet Secretary of the National Treasury. It costs 50 billion Kenyan shillings ($402 million) to launch this digital financial inclusion initiative. For their sustainable projects, particularly in the agribusiness and mobility sectors, the fund is being disbursed as a credit to people and micro, small, and medium-sized businesses (MSMEs).
Kenya Power will aid the Kenyan government in implementing its policy to promote green transportation. A fleet of electric vehicles and 30 charging stations will be installed in the next month’s thanks to a $331,000 investment made by the state-owned power company in the second half of 2022.
The private sector is vying for position on Kenyan highways at the same time to introduce greener vehicles. This is the case with the mobility start-up Roam Motors, which is getting ready to start driving electric buses made in Nairobi by 2023.