Kenya has launched the National Electric Mobility (e-Mobility) Policy, a move expected to slash the country’s ballooning fuel import bill and accelerate the shift to low-carbon transport.
The policy was officially unveiled on Monday at the Kenyatta International Convention Centre (KICC) by Cabinet Secretary for Roads and Transport Davis Chirchir, who said electric mobility is no longer a choice but a strategic necessity for Kenya’s economic stability and environmental sustainability.
“This substantial fuel import bill reflects Kenya’s heavy reliance on imported petroleum for transport, industry, power generation, and aviation – making fuel one of the most significant components of our total import expenditure,” said CS Chirchir.
Kenya currently spends an estimated US$5 billion annually on petroleum imports, a burden that continues to strain foreign exchange reserves and expose the economy to global fuel price volatility. According to data from the Kenya National Bureau of Statistics, fuel imports rose sharply to KSh628.4 billion in 2023, up from KSh348.3 billion in 2021, making petroleum products the country’s single largest import category.
“This substantial fuel import bill reflects our heavy reliance on imported petroleum for transport, industry and power generation,” CS Chirchir said, noting that electric vehicles offer a clear pathway to reduce this dependence.
As part of the rollout, the government also introduced green reflective number plates exclusively for fully electric vehicles, a move aimed at improving visibility, regulation, and public awareness of EV adoption.
Electric vehicle uptake in Kenya has surged in recent years. By 2025, the country had cumulatively registered 39,324 electric vehicles, up from just 1,378 in 2022 — a growth of more than 2,700 per cent in three years. The biggest gains have been recorded in the electric motorcycle segment, driven by affordable models and targeted financing for the bodaboda sector.
“Kenya’s National E-Mobility Policy marks a bold step toward a cleaner, more competitive future for the country. IFC is proud to have partnered with the Government of Kenya to support the legal and regulatory framework for this transformation. Electric mobility will create jobs, boost local manufacturing, and reduce dependence on costly fuel imports. For drivers, this policy will mean lower operating costs for vehicles and better access to charging stations. IFC looks forward to helping Kenya attract the investment it needs to build its e-mobility infrastructure and help the country become an African leader in the sector.” Mary Porter Peschka, Division Director, Eastern Africa, International Finance Corporation
To support this momentum, the government is developing a National Electric Mobility Strategy to guide coordinated implementation across institutions and the private sector. Recent fiscal incentives introduced through the Finance Bill 2025 include zero-rating VAT on electric buses, bicycles, motorcycles and lithium-ion batteries, alongside the removal of excise duty on key EV components.
The policy applies to all modes of transport and provides a comprehensive framework for regulation, investment and expansion of electric mobility. Beyond emissions reduction, it is expected to unlock new opportunities in manufacturing, assembly, charging infrastructure, skills development and green jobs under the Bottom-Up Economic Transformation Agenda.
Principal Secretary for Industrialisation Juma Mukhwana said demand for electric vehicles in Kenya is already outstripping supply, calling for increased short-term financing to help firms scale up local assembly as the country positions itself for long-term EV manufacturing. He also flagged the need to expand charging infrastructure beyond Nairobi to other towns and transport corridors.
Development partners welcomed the policy, with Germany and the European Union reaffirming their support for Kenya’s clean transport ambitions. Germany’s Ambassador to Kenya, Sebastian Groth, said the country has the potential to become a regional leader in electric mobility, while EU Deputy Head of Mission Ondrej Šimek cited Kenya’s strong renewable energy base — which accounts for over 90 per cent of electricity generation — as a key advantage.
The policy was developed with technical and financial backing from partners including the European Union, Germany (through GIZ), the United Kingdom, the International Finance Corporation and the University of California, Davis, underscoring growing international confidence in Kenya’s green transport transition.
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