NAIROBI, Kenya- The Kenyan government is set to scrap the monthly cap on cheaper electricity for electric vehicles (EVs) in a bid to accelerate the adoption of e-mobility technology.
Currently, EV battery-charging companies are restricted to a maximum of 15,000 kilowatt-hours (kWh) per month under the e-mobility tariff introduced in April last year.
Once this limit is exceeded, the companies are charged at standard rates.
New Tariff Plans and Their Implications
Under the current tariff, EV firms pay Sh16 per unit during peak hours and Sh8 per unit during off-peak hours, significantly lower than the Sh20 per unit rate for small commercial customers.
However, the Energy and Petroleum Regulatory Authority (EPRA) has announced plans to remove this 15,000 kWh limit following lobbying by EV firms experiencing increased demand for charging services.
EPRA Director-General Daniel Kiptoo explained that the initial cap was intended to protect Kenya Power from potential revenue losses due to the discounted rates.
Speaking at a nationwide campaign launch to promote EV safety and affordability, Kiptoo emphasized the need for discussions with Kenya Power and other stakeholders to increase or entirely remove the limit.
This change could take effect by the end of the current tariff control period in June 2026, depending on data gathered about EV adoption in the country.
Surge in Electric Vehicle Registrations
The move comes amid a significant rise in EV registrations, which jumped over fivefold to 2,694 units last year from 475 units the previous year.
This brings the total number of registered EVs in Kenya to 3,753.
The government’s initiatives, such as the introduction of the e-mobility tariff, the reduction of excise duty on EVs from 20pc to 10pc, and the exemption of fully electric cars from Value Added Tax (VAT), have contributed to this surge.
Kenya Power’s Role in Promoting EV Adoption
In support of this initiative, Kenya Power has opened two EV charging stations for free use. Located at Stima Plaza along Kolobot Road and Ruaraka, these stations aim to facilitate research on e-mobility.
EV owners need to obtain RFID cards from the Kenya Power security desks at these locations to use the charging stations.
The Stima Plaza station features a 50 kW DC charger with a one-hour charging time and a 22 kW AC charger with a two-hour charging time.
This infrastructure is part of Kenya Power’s efforts to support the growing number of EVs, which constituted 1.62pc of all vehicles registered in 2023.
The country aims to increase this to 5pc by 2025, as outlined in the Kenya National Energy Efficiency and Conservation Strategy, 2020.
Balancing Incentives and Financial Sustainability
Kiptoo stressed the importance of balancing sector revenues, financial sustainability of the utility, and continued incentives for e-mobility uptake.
This delicate balance is crucial as Kenya navigates its path toward widespread EV adoption, aligning with global trends and environmental goals.
