The first 100,000 electric vehicles to be manufactured in Kenya will be exempted from all taxes in line with the government's objective to phase out all traditional fueled cars.
During an address to the Fortune 500 Companies Chief Executive Officers in Atlanta, President William Ruto drummed up the policies Kenya has put in place to incentivise the transition to emobility including attracting local and foreign investors.
Following the transition, all EV motorists will be issued with green coloured number plates, which the government insists is consistent with the eventual goal to gradually transition to electronic-powered transportation.
While making his remarks, President Ruto noted that his administration has proposed different forms of tax exemptions for the electronic mobility sector in the proposed budget for the 2024/2025 Financial Year.
The elimination of taxes on electric vehicles and their components will effectively lower the prices of cars to a favourable cost.
EV parts are mainly imported from leading manufacturing hubs such as China and Japan by emobility firms for local assembly.
"We also lead in emobility. You heard Ambassador Meg Whitman, who stated that we host over 30 emobility companies and attract regional players," Ruto stated.
"Just for you to contextualise this, in this year's budget, we will eliminate all taxes for the first 100,000 electric cars," he added.
Following the announcement, EV motorists will be exempted from a 10 per cent import duty on completely knocked-down electric vehicles, a 25 per cent import duty on lithium-ion batteries, and 25 per cent import duty on EV charging infrastructure.
Ruto's administration seeks to increase the number of registered electronic vehicles from 1.62 per cent to 5 per cent by 2025.
Currently, the government estimates that there are 3,753 electric vehicles in Kenya, including private vehicles, motorcycles and buses.
Following the transition, all EV motorists will be issued with green-coloured number plates, which the government insists is consistent with the eventual goal to gradually transition to electronic-powered transportation.
Aside from tax exemptions, the said motorists will also enjoy cheaper electricity tariffs, cheaper parking rates and access to restricted areas.
