Govt Proposes Subsidies & Waiver for Matatus & Electric Vehicles

A photo collage of Transport CS Kipchumba Murkomen holds a meeting with leaders from Nyandarua on March 25, 2024.
A photo collage of Transport CS Kipchumba Murkomen holds a meeting with leaders from Nyandarua on March 25, 2024.
Photo
Kipchumba Murkomen

Transport Cabinet Secretary Kipchumba Murkomen proposed several incentives on Wednesday, March 27, to boost the adoption rate of Electric Vehicles (EVs) across the country.

Under the Draft National e-Mobility Policy, the Ministry plans to waive vehicle registration fees for newly registered EV drivers. 

Additionally, a framework will be established to provide subsidies to public service transport operators looking to acquire high-capacity EVs for passenger transportation.

These measures, as outlined in the policy, aim to address the issue of insufficient incentives provided to manufacturers, infrastructure developers, and consumers of e-mobility.

Electric car acquired by Kenya Electricity Generating Company PLC (KenGen) on Thursday November 24, 2022
Electric car acquired by Kenya Electricity Generating Company PLC (KenGen) being charged on November 24, 2022.
Photo
KenGen

In the policy, the Transport Ministry highlighted the over-reliance of Road Maintenance Levy (RML) collected on petrol and diesel to fund road projects. The levy is a tax collected at the pump at a rate of Ksh18 per litre.

CS Murkomen has in the past highlighted funding constraints as a major hindrance towards the road maintenance and rehabilitation program across the country. This led to a conversation to increase the rate to Ksh22 per litre.

In contrast, the National e-Mobility policy advocates for ways for the government to develop alternative financing structures to reduce reliance on RML.

"Apply a phased approach in the implementation of any alternative financing structures developed for road maintenance, rehabilitation and development," read part of the policy.

For the approach to be considered, the government will form a committee to establish the impact of adopting e-Mobility funded by the Road Maintenance Levy.

The committee will also oversee the coordination of electric mobility initiatives carried out by the county governments.

Corporate law expert Daniel Ngumy and activist Jerotich Seii have been appointed as the Chairperson and Vice-Chairperson of the committee, respectively.

Members of the committee include a 15-member panel including Anne Nyaga, David Mutisya, Zacharia Lukorito, Chris Mugo, Augustine Kenduiwo, Judy Chepkirui, Edwins Mukabanah and Hezbon Mose.

Others include Abdullahi Ali, Anne Njoroge, Izael Da Silva, Ibrahim Kinyanjui, Githaiga Weru, Javan Odenyo and Meshack Ochieng.

The committee will also be tasked with setting timelines for when all new vehicles registered will be required to be zero-emission vehicles.

The drive is part of the government's strategy to reduce emissions by 32 per cent by 2030.

Murkomen
Transport Cabinet Secretary Kipchumba Murkomen.
Photo
Kipchumba Murkomen