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Kenya unveils tax breaks for EV parts and charging stations to speed up shift to electrics

Kenya's policy offers tax exemptions and corporate relief to boost EV market, aiming for 3,000 ministry EVs by 2027 and cutting greenhouse gases by 32%, officials said.

  • Transport Cabinet Secretary Davis Chirchir announced the National Electric Mobility Policy in Nairobi, introducing VAT and excise duty exemptions beginning in July to boost EV adoption.
  • Driven by climate targets, Kenya's National Electric Mobility Policy aligns transport with its Paris Agreement pledge to cut greenhouse gas emissions by 32% by 2030.
  • Registered electric vehicles rose to 24,754 in 2025 from 796 in 2022, driven by electric motorcycles, buses and fleet vehicles, with sales forecast to match gas and diesel vehicles by 2042.
  • The government plans to benefit EV manufacturers and assemblers with corporate income tax relief and tax holidays, aiming for 3,000 EVs for ministries by next year.
  • Government is studying road-use charges and electricity-based levies to address a $693 million fuel-tax shortfall by 2043, up from a $16.9 million gap in 2025, with a stamp tax reduction for charging stations in 2027.
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Kenya unveils tax breaks for EV parts and charging stations to speed up shift to electrics

Kenya is rolling out tax breaks to encourage use of electric vehicles. The incentives include exemptions for value-added taxes and excise duties beginning in July.

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The Independent broke the news in London, United Kingdom on Wednesday, February 4, 2026.
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