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By Victor MUJIDU
The Kenya Electricity Generating Company ltd (KenGen) Tuesday partnered with the International Chamber of Commerce – Kenya Chamber (ICC Kenya) in rolling outincentives to boost the expansion of e-mobility sector.
“We’re related to the viability and sustainability of renewable energy, with one of our strategies being the distribution of renewable energy using geothermal, promote productive use of electricity to consumers and be part and parcel of catalyst in mitigating climate change,” said David Muthike, a Strategy and Innovation Director at KenGen.
In recent years, Kenya has stood out as a regional leader in e-mobility, with investments in electric buses, taxi cabs, and motorcycles. The country also boasts many electric vehicles (EV) charging stations in Nairobi and the counties.
This is in keeping with the race around the world to phase out gasoline and petrol cars and replace them with EVs.
While mass adoption remains a dream in Kenya, the country is doing better than most of its continental peers.
In November last year, the power generating firm unveiled the first batch of its fleet of electric vehicles as it leads the way in the transition to e-mobility.
In a roundtable discussion with various entities including Kenya Commercial bank, (KCB), Energy and Petroleum Regulatory Authority (EPRA), and the ICC Kenya, Kengen will supply viable and sustained renewable energy to local customers and Electric vehicle users (EV).
Being a local indigenous product, geothermal is viable and sustainable, thus guaranteeing the EVs access to renewable, clean electricity that is affordable.
According to the Draft 2023 Budget Policy Statement issued in January 2023, Kenya is considering to incentivize e-mobility by rolling out EV charging infrastructure in all urban areas and along the highways.
Creating incentives for the adoption of electric mass transit systems in all cities and towns; providing financial and tax incentives for PSVs and commercial transporters to convert to EVs; leveraging the financial support that will be provided to the boda boda sector through the Hustlers Fund; and developing the nascent EV and motorcycle assembly industries.
The managing partner and Head of Tax at Anjarwalla and Khanna | ALN Kenya, Daniel Ngumy, said that the government, through the national treasury, is working on green energy fiscal incentives that will consider the transportation sector, carbon tax implementation, and electricity consumption.
“In the Draft national Green Fiscal Incentives policy framework, issued in February 2023 by the national treasury, the salient considerations for fiscal incentives include implementation of the carbon tax rate, how to allocate revenues raised, competitiveness provisions, tax exemptions and credits for off-grid renewable energy installations, and providing incentives for the import, manufacture, and assembly of electric and hybrid motor vehicles, motorcycles, and their spare parts, among other policies.”
Other proposed non-fiscal measures in promoting the e-mobility sector include the provision of necessary charging infrastructure in Kenya, with the Nairobi County government expected to spearhead the program.
“As a pilot program, the Nairobi County government should allot public land to allow the setting up of EV charging stations free of rent and rates, provide electric vehicle charging stations in the building code and city planning rules, issue green license plates to allow EVs to get preferential treatment in parking, and allow free entry into congested zones that will be determined,” it states.
As a team player in promoting charging infrastructure for EVs, Kengen has established two power stations and looks forward to constructing 30 more stations nationwide.