The Government of Kenya's Draft National E-mobility Policy was released in March 2024 by the Ministry of Roads and Transport in Kenya. It is an ambitious initiative to provide efficient and inclusive sustainable transportation. As a significant player in the sector, E-Safiri is in a good position to collaborate and provide meaningful input such as technical support to create a movement that aims at establishing Kenya as a leader in the switch towards electric vehicles in Africa.
Technological improvements
Regarding boosting local EV assembly and manufacturing, Kenya’s new e-mobility policy opens up numerous opportunities for local businesses. By building a robust ecosystem for EV auto parts, local industries including the JuaKali industry can start producing essential components like batteries, motors, and electronic systems. This shift cuts down on our dependence on imports and drives technological advancement and industrial growth within the country. During his recent historic visit to the United States, President William Ruto revealed plans to waive taxes on the first 100,000 locally assembled 2- and 4-wheeler electric vehicles while speaking at the US-Kenya Business Forum.
Furthermore, the drive to build local technical capacity and skills aligns perfectly with our objectives to promote STEM education. Integrating e-mobility courses into technical schools and universities can facilitate the production of a competent workforce prepared to tackle obstacles the EV sector faces. As E-Safiri, we will continue to lead the way in e-mobility technologies by employing charging hubs, especially in rural communities to promote charging infrastructure and research and development.
Scaling Infrastructure Development
To ensure the widespread adoption of electric vehicles, establishing a comprehensive network of accessible and efficient charging stations is imperative. This presents an excellent opportunity for collaboration between the private sector and the government at national and local levels to develop and manage these essential infrastructures. Leveraging the frameworks and incentives public initiatives provide makes private-sector investment in this endeavor more attractive and feasible.
Incentives and Economic Opportunities
According to the framework, the policy's fiscal incentives, such as tax exemptions and reduced import duties on EV components, will create a favorable business environment for existing and new entrants in the e-mobility sector. By lowering initial cost barriers, these incentives stimulate increased private investment in EV manufacturing, assembly, and infrastructure development.
To expand and grow, all enterprises operating in the e-mobility sector from two, three, and four-wheelers to buses, trucks, and charging infrastructure need assistance. Further discussions among all stakeholders involved along the path can make this possible.
Promoting Inclusivity and Social Impact
We appreciate the policy for strongly focusing on improving social inclusion and gender equality within the e-mobility ecosystem. Through the creation of focused initiatives aimed at women, young people, and people with disabilities, the strategy guarantees that the advantages of e-mobility are accessible to all. When it comes to putting these initiatives into action, generating jobs, and promoting an inclusive and diverse workplace, the private sector can be an invaluable collaborator.
Financial inclusion initiatives like low-interest loans and reasonably priced financing are crucial to enticing a wider spectrum of consumers to participate in electric vehicles.
Conclusion
The policy’s ultimate goal of reducing reliance on fossil fuels and mitigating greenhouse gas emissions aligns perfectly with global climate commitments. By embracing e-mobility, Kenya not only tackles its environmental challenges but also sets an inspiring example for other nations.
The Draft National E-Mobility Policy provides a comprehensive roadmap for a revolutionary shift in Kenya’s transportation sector. As private sector stakeholders, we are thrilled to contribute to this transformative journey, leveraging our resources, expertise, and innovative spirit to propel Kenya towards a greener, more sustainable future.
As we await for the Finance Bill 2024 to be passed, we hope that the Draft National E-Mobility Policy and other support promised by the government will be considered, considering the growth rate of electric vehicle usage from 796 in 2022 to 4047 in 2023 according to 'Electrifying Kenya's Public Transport'. The government has to reassure its commitment and support to e-mobility as we know its invaluable perks.
References
E-MOBILITY. (2024, March). Ministry of Roads and Transport. Retrieved June 4, 2024, from Link
SONG, G. (2024, May 27). Proposed taxes in new Finance Bill will stagnate growth of e-mobility. Business Daily. Retrieved June 4, 2024, from Link