Tax Exemptions & Benefits Proposed for Select Motorists & Landlords

Transport Cabinet Secretary Kipchumba Murkomen alongside government officials and e-mobility task force members during the launch of the policy on March 27, 2023, at KICC.
Transport Cabinet Secretary Kipchumba Murkomen alongside government officials and e-mobility task force members during the launch of the policy on March 27, 2024, at KICC.
Photo
Kipchumba Murkomen

A task force that Transport Cabinet Secretary Kipchumba Murkomen appointed has proposed a raft of measures aimed at increasing the uptake of e-mobility including several tax incentives.

In the Draft National e-Mobility Policy, launched on Wednesday, March 27, the task force recommended that the government introduce Value Added Tax (VAT) waivers for electric vehicles and motorcycles imported into the country.

Jerotich Seii, who leads the task force, proposed waivers for Import Duty and Excise Duty on Kenyans importing electric automobiles. 

On the other hand, building owners who set up EV charging points in their property will also enjoy reduced stamp duty for the development of the technology.

An electric bus owned by Embassava Sacco in Nairobi on May 19, 2023.
An electric bus owned by Embassava Sacco in Nairobi on May 19, 2023.
Photo
BasiGo

Seii's team also recommended that the government review electricity tariffs for the charging infrastructure.

Through this proposal, those with electric vehicles and motorcycles will pay less when charging the vehicles even as the landlords also pay less power consumed in the process.

"The government should develop a special operating framework (SOF) which will provide special fiscal and non-fiscal incentives to attract the establishment of EV manufacturing plants in Kenya and for the exportation of locally built EVs across the continent.

"There should also be integration of charging infrastructure with transport and energy planning," the task force proposed.

Notably, the task force also proposed that the government consider putting timelines to eradicate vehicles which run on fossil fuel. The introduction of emission inspections was also proposed.

Currently, there are close to 3,000 electric vehicles in the country with the government aiming to have the number increase significantly given the rising concerns of climate change.

Already, as part of the incentives offered by the government, Murkomen announced the introduction of green-coloured number plates that will be given to electric vehicles and motorcycles.

The CS explained that the move would ensure that the vehicles are easily identifiable and get priority for parking among other incentives such as lowered parking rates.

Transport Cabinet Secretary Kipchumba Murkomen holding number plates that will be issued to electric vehicles and motorcycles.
Transport Cabinet Secretary Kipchumba Murkomen holding number plates that will be issued to electric vehicles and motorcycles at KICC on March 27, 2023.
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