Kenya dreams of itself as an electric vehicle Eldorado

At the opening of the African Climate Summit in September 2023, Kenyan President William Ruto arrived all smiles at the wheel of a funny yellow, electric, local car. A prototype of the Air Yetu (“we”, in Swahili) which is due to begin production in the suburbs of Nairobi in 2024.

Like this presidential “outing”, which had its media effect, the government is on the offensive on electric vehicles. In 2023, VAT was abolished on batteries, import costs were reduced for spare parts. The finance law, also marked by the increase in numerous taxes for citizens, provided for a VAT exemption for local manufacturers of electric vehicles; like the Air Yetu, whose promoters did not wish to respond to requests from World.

“There is a lot of government support for electric mobility”, says Rajal Upadhyaya, financial director of the start-up Roam, which assembles electric buses and motorcycles in Nairobi and presents itself as one of the local leaders. Beyond the climate benefits, the authorities see two major advantages, he emphasizes. Firstly, Kenyan electricity is green (more than 90%, thanks in particular to geothermal energy) but tends to overproduce, especially at night. “Electric mobility offers an outlet for this energy. The batteries can be recharged at night, when consumption is low », continues Mr. Upadhyaya. A special rate (at 8 shillings – 5 euro cents – excluding taxes per kilowatt hour at night and 16 during the day, compared to 20 for individuals) is also planned.

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Secondly, the growth of the electricity sector could make it possible to alleviate, even marginally, the recurring lack of dollars, the effect of which is deleterious for the economy. The country imports no less than $500 million (464 million euros) worth of fuel every month. Any reduction in the bill would give it some breathing space.

Rare but economical

More than individual cars, mainly second-hand, electric motorcycles appear to be the most promising sector. Around thirty start-ups are investing in this market, most of which is made up of boda-bodas. These motorbike taxis, countless and essential, from the congested streets of Nairobi to the most rural areas, transport passengers and deliver all kinds of products. From the basket of vegetables to the lawn mower and… sofas.

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