- Kenya noticed complete electrical energy consumption below the electrical mobility tariff class attain 1.80GWh in 2024, marking a 480.65% leap.
- Through the yr below evaluation, electrical automobiles hitting Kenyan roads elevated by 41% to five,294 models.
- Vitality sector regulator says the halving of EV excise obligation (20% to 10%), VAT exemptions for full-electric vehicles, and particular e-mobility tariffs launched in April 2023 are driving uptake.
East Africa’s largest financial system Kenya is popping into one of the thrilling funding frontier in clear vitality with newest statistics displaying a gentle improve within the adoption of inexperienced mobility techniques.
Within the newest trade statistics shared by the Vitality Petroleum Regulatory Authority (EPRA), Kenya skilled 41 % improve to five,294 electrical automobiles hitting Kenyan roads in 2024 in comparison with the three,753 EVs that have been reported in 2023.
This quantity contains two wheelers, three wheelers, vehicles and even buses in the course of the interval below evaluation. Because of this, EPRA noticed the “complete electrical energy consumption below the electrical mobility tariff class in the course of the evaluation interval attain 1.80GWh, marking a 480.65 % improve in comparison with the identical interval within the earlier monetary yr.”
Based on Epra’s Biannual Vitality and Petroleum Statistics Report Monetary 12 months 2024/2025, behind these numbers lies a calculated authorities playbook:–
- Tax breaks that energy demand: A halving of EV excise obligation (20 % to 10 %), VAT exemptions for full-electric vehicles, and particular e-mobility tariffs launched in April 2023 are driving
- Infrastructure: From charging stations sprouting in Nairobi’s malls, pump stations and workplace blocks, to native meeting crops for electrical bikes, a variety of traders in Kenya are constructing the ecosystem essential to energy inexperienced mobility.
- International alignment: The COP26 dedication to one hundred pc zero-emission automobiles indicators long-term coverage stability – a uncommon inexperienced mild for cautious traders.
For the time being, traders scouting for hotspots inside this evolving trade can think about deploying ccharging infrastructure ventures, enhancing EV leasing fashions for boda-bodas, and battery recycling options.
Clear vitality: Kenya’s Inexperienced Hydrogen sector
Based on EPRA, whereas the world debates hydrogen’s viability, Kenya is already positioning itself as Africa’s inexperienced hydrogen hub. The 2023 Inexperienced Hydrogen Technique is providing the nation a $1 billion funding blueprint for potential traders, the report reveals.
With practically 90 % of renewable electrical energy combine, comprising geothermal, wind, photo voltaic sources, Kenya can produce hydrogen at $2/kg, cheaper than a major variety of international locations in Europe.
Moreover, the nation’s 300 MW Olkaria hydrogen-ready geothermal plant and deliberate inexperienced ammonia exports from Lamu supply recent avenues for investments, inexperienced jobs and monetization.
“Kenya launched its Inexperienced Hydrogen Technique and Roadmap in the course of the Africa Local weather Summit… It units formidable impression targets, together with securing not less than $1 billion in direct investments by 2030, creating not less than 25,000 direct jobs between 2028 and 2032, avoiding not less than 250,000 tonnes of CO2 emissions yearly by 2030, and producing inexperienced delivery fuels by 2030,” EPRA notes partly.
Moreover, Kenya’s Might 2024’s Hydrogen Pointers present one thing uncommon in rising markets – guidelines on land use, water sourcing, and feasibility approvals that de-risk early-stage capital.
“These pointers outline sustainability standards for inexperienced hydrogen, regulate land and water use, and description procedures for approving expressions of curiosity and feasibility research.”
A few of the good cash strikes that traders can think about are the organising of hydrogen-powered fertilizer manufacturing (reducing import payments), inexperienced metal pilots close to Mombasa port, and transport gas mixing initiatives.
Learn additionally: The unlikely hero? Public transport’s stunning position in EA’s inexperienced mobility shift
Autogas: A disruptor in clear energy transition
Lurking beneath flashier EV headlines, Kenya’s autogas sector is constructing a quiet empire. Ten new development permits in 2024 sign rising confidence, however the true story is within the advantageous print:
- Tax Arbitrage Alternative: Zero-rated LPG taxes make conversions more and more economical as petrol costs fluctuate.
- Security = Scalability: Proposed amendments to 2019 LPG Laws tackle previous security considerations, this has been one of many lacking piece for mass fleet conversions.
“Innovation continues to form the sector’s future… the demand for autogas as a substitute transport gas has gained traction, with 10 permits issued for the development of autogas stations in the course of the interval below evaluation,” notes EPRA Director-Common Daniel Kiptoo.
A few of the goal industries that may faucet into this positioning are conversion package manufacturing, LPG logistics for inland depots, and maritime bunkering partnerships at Lamu Port.
