Kenya was supposed to be East Africa’s electric vehicle capital. Just three years ago, Nairobi’s streets were already seeing a growing number of electric motorcycles and battery-powered buses, supported by a government that had championed green transport as part of its national climate strategy. Today, that lead has evaporated — and Ethiopia and Rwanda are racing past.
A new report from The EastAfrican identifies a dramatic reversal of fortune in East Africa’s electric mobility landscape. Ethiopia and Rwanda have both overtaken Kenya in the race to electrify transport, buoyed by stronger policy frameworks, deeper tax incentives, and more coordinated investments in charging infrastructure.
Ethiopia has made perhaps the most unexpected leap. The government introduced a sweeping incentive package last year that exempted electric vehicles from import duties and excise taxes, while simultaneously announcing plans to convert a significant portion of Addis Ababa’s public transport fleet to electric power. The results have been striking: electric motorcycle sales in the capital have tripled since January.
Rwanda has taken a different but equally effective path. The government in Kigali partnered with private investors to build a network of fast-charging stations across the city, and introduced a scrappage scheme that allows drivers trading in combustion-engine vehicles to receive subsidies on electric replacements. The scheme has proven particularly popular among ride-hailing drivers.
Kenya, by contrast, has suffered from policy inconsistency. Despite early ambitions outlined in its National Electric Mobility Strategy, the government has struggled to translate plans into action. The Electric Vehicle Charging Infrastructure Regulations, first announced in 2023, remain in draft form. Import duty exemptions for EVs have been repeatedly delayed by treasury concerns over lost revenue.
“We have the will, but the machinery is slow,” said James Mwangi, a Nairobi-based electric vehicle dealer. “While we’re waiting for regulations, our neighbours have already built the roads.”
The stakes are high. East Africa is experiencing a transportation revolution driven partly by necessity: fuel import bills are a significant drain on foreign exchange reserves across the region, and the Iran war has driven oil prices above $116 per barrel, making fuel more expensive than ever.
Kenya’s energy mix is actually better suited to EVs than its neighbours. The country generates over 90% of its electricity from renewable sources, primarily geothermal and wind. Yet without the right policy signals, that advantage is going to waste.
Industry observers say Kenya still has an opportunity to catch up, but the window is narrowing. If Kenya fails to act decisively in the next 12 months, analysts warn it could lose its position as East Africa’s green transport hub entirely.