Transport Cabinet Secretary Kipchumba Murkomen has revealed that the exemption of taxes on electric vehicles has led to the registration of over 2,000 cars.
Murkomen elaborated that this initiative had a ripple effect on fuel savings, which would otherwise have been harmful to the environment. Additionally, it attracted a 100 million-dollar investment in the industry.
"The exemption of taxes for electric vehicles in the past year has resulted in the registration of 2,128 electric vehicles, saved over 1 million litres of fossil fuels imports, attracted over USD 100 million in investment, and reduced commuters' transport costs," Murkomen stated.
Addressing the National Assembly, the Cabinet Secretary urged Members of Parliament to maintain the tax exemptions to bolster the fight against carbon emissions.
"I put up a case for the retention of these tax exemptions for the first 100,000 EVs that will be imported into the country - including electric buses, electric cars, electric tuk-tuks, and electric bicycles," Murkomen told the Departmental Committee on Finance and National Planning at the National Assembly.
He explained that the move was meant to help in the continued effort to reduce carbon emissions and curb climate change, as per the Kenya National Adaptation Plan 2015-2030 and the Nairobi Declaration 2024.
The CS advocated for continued VAT exemption for the aviation sector, which has so far resulted in the growth of the sector, the creation of jobs, and improved investments.
His presentation is in tandem with the government's plan to phase out all traditional fueled cars and manufacture electric vehicles.
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 e-mobility including attracting local and foreign investors.
In the transition, all Electric Vehicle (EV) motorists will receive green-coloured number plates, a symbolic move reflecting the government's commitment to gradually shifting towards electronic-powered transportation.
During his address, President Ruto highlighted his administration's proposal for various tax exemptions in the electronic mobility sector as part of the 2024/2025 Financial Year budget.
The proposed elimination of taxes on electric vehicles and their components is expected to significantly reduce car prices, making them more affordable for consumers.
As part of the announcement, EV motorists will enjoy exemptions from a 10 per cent import duty on completely knocked-down electric vehicles, a 25 per cent import duty on lithium-ion batteries, and a 25 per cent import duty on EV charging infrastructure.
