Electric Vehicles Surge to 3,753 as Govt Introduces New Number Plates & Tax Incentives

Motorists stranded On a stand still Traffic Jam Towards The CBD Along Busy Thika super Highway in Nairobi on Monday, November 11, 2019.
Motorists stranded On a standstill Traffic Jam Towards The CBD Along Busy Thika super Highway in Nairobi on Monday, November 11, 2019.
Simon Kiragu
Kenyans.co.ke

Slightly over 3,700 vehicles are set to be issued with green coloured number plates that Transport Cabinet Secretary Kipchumba Murkomen unveiled in March.

According to the Bi-Annual Energy & Petroleum Statistics Report, prepared by the Energy Petroleum and Regulatory Authority (EPRA), there are currently 3,753 electric vehicles in the country.

In the report which covered the first half of Financial Year 2023/2024, it was revealed that the majority of the vehicles were registered last year.

Particularly, EPRA noted that 2,694 vehicles were registered in 2023, which was a 467 per cent increase from those recorded in 2022.

Transport Cabinet Secretary Kipchumba Murkomen unveiling green coloured number plates for electric vehicles on March 27, 2024.
Transport Cabinet Secretary Kipchumba Murkomen unveiling green coloured number plates for electric vehicles on March 27, 2024.
Photo
Kipchumba Murkomen

"During the review period 2,694 electric vehicles (EVs) were registered, bringing the cumulative number of registered EVs to 3,753.

"The increase in registered EVs may be attributed to government initiatives such as the introduction of the e-mobility tariff, reduction of excise duty on EVs from 20 per cent to 10 per cent and exemption of fully electric cars from Value Added Tax (VAT)," read the statement in part.

Number Plates & Incentives

During the unveiling of the Draft Electric Mobility Policy, Murkomen revealed that all-electric vehicles would be issued with special number plates in a move aimed at encouraging the uptake of environment-friendly vehicles.

He noted that the green-coloured plates would also help in the proper identification of the vehicles which are also set to enjoy tax incentives from the national government and county governments.

Some of the incentives proposed for the industry include;

Power Tariffs: The vehicle owners will have a cheaper electricity tariff which will see them spend less in charging their vehicles.

Tax exemptions and reductions: The national policy also proposes for waiver of import duty, VAT and excise duty on completely built-up EVs. This will make the vehicles cheaper. The government is also proposing to waive registration fees for the vehicles.

Parking Fees: Through the number plates, the vehicles will be able to access restricted areas and have cheaper parking rates.

Targets

According to the EPRA, the plan is to have the number of electric vehicles increase significantly within the next 24 months.

"As of December 2023, EVs constituted 1.62% of vehicles registered that year, with the country aiming to reach 5% by 2025, as outlined in the Kenya National Energy Efficiency and Conservation Strategy, 2020," read the statement in part.

EPRA DG Daniel Kiptoo speaking during a stakeholders forum on February 5, 2024.
EPRA DG Daniel Kiptoo speaking during a stakeholders forum on February 5, 2024.
Photo
EPRA