Govt Cuts Taxes on Electric Vehicles

EPRA boss Daniel Kiptoo holds talks with former Energy CAS Zachary Ayieko
EPRA boss Daniel Kiptoo holds talks with former Energy CAS Zachary Ayieko on Tuesday, March 11, 2022.
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Energy and Petroleum Regulatory Authority (EPRA) has issued new guidelines for companies operating electric mobility charging stations in the country. 

Speaking during the launch of the launch of the Electric Vehicle Charging and Battery Swapping Infrastructure guidelines, 2023,  Energy Cabinet Secretary Davis Chirchir revealed the government has approved a special e-mobility tariff and exempted electric vehicles from Value Added Tax (VAT).

During the event, Chirchir also announced the government has reduced excise duty on fully electric cars from 20 per cent to 10 per cent. 

"Locally assembled E-motorcycles are exempted from excise duty and affordability of the electric vehicle batteries has been prioritised through VAT and Import duty exemptions,” Chirchir stated.

The guidelines aim to promote the development of electric vehicle (EV) charging and battery swapping infrastructure in Kenya.

“E-mobility will contribute significantly to our goal of achieving a 100 percent transition to renewable energy by 2030. EPRA data shows that as of July 2023, 91 per cent of the total energy mix in Kenya is from renewable energy resources.

A file photo of Electric Vehicle Taxis charging
A file photo of Electric Vehicle Taxis charging
International Energy Agency

"Electric vehicles are poised to add to this demand, propelling us further into a green energy future,” Chirchir stated.

One of the key provisions of the guidelines is the capping of the price to be charged by public charging and battery swapping stations.

The guidelines also require operators of public charging and battery swapping stations to display the price at all publicly accessible stations.

This will help EV drivers to compare prices and make informed decisions about where to charge their vehicles.

The EPRA has also set out a number of other requirements for public charging and battery swapping stations, including the fact that the stations must be located in strategic locations, such as along major highways and in city centers.

The stations must be accessible to all electric vehicle drivers, regardless of the vehicle make or model.

EPRA has demanded that charging stations must be equipped with a variety of charging connectors to accommodate different types of EVs.

The agency has also noted that the stations must be operated and maintained by qualified personnel in order to avoid possible disasters.

EPRA noted that guidelines are a significant step forward in the development of EV charging and battery swapping infrastructure in Kenya.

They will help to make EVs more affordable and accessible to Kenyans, and contribute to the country's efforts to reduce its reliance on fossil fuels.

On his part, EPRA Director General Daniel Kiptoo Bargoria reiterated the agency's  commitment to support the transition to green mobility by laying down regulatory frameworks that aim to build confidence in the shift to electric vehicles.

Kiptoo termed the guidelines as a build up to the e-mobility tariff that the EPRA approved early this year and they seek to encourage the uptake of electric vehicles.

A collage of President William Ruto on an electric bike on Tuesday July 25 (left) and him at a church service on Sunday July 23, 2023
A collage of President William Ruto on an electric bike on Tuesday, July 25 (left) and him at a church service on Sunday, July 23, 2023
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