Transport operators call for tax relief on electric vehicles as fuel prices rise

Edwin Mukabanah and Justin Nyaga on Spice FM. [Screengrab]

The transport sector has called on the government to intervene and ease the importation of electric vehicles into the country.

Speaking during an interview on Spice FM on Wednesday, April 15, Chairman of the Organisation of Online Drivers and Secretary General of the Hailes Transport Umbrella Association, Justin Nyaga, said high taxes on electric vehicle imports remain a major barrier to adoption.

“If you include motor bikes, approximately 10 per cent, because we have multiple challenges in the transition, because it is very expensive when importing such cars. If the government can remove taxes to enable us to get these cars at affordable price rates, the better,” he said.

Nyaga also highlighted challenges in the classification of imported vehicles, particularly the categorisation into first, middle, and seven-seater vehicles. He noted that while conventional vehicles are classified using engine capacity (CC), electric vehicles do not fall under the same system.

“Application companies are finding it difficult to bring about these categories and to understand which car should be placed in this category and which in this category,’’ he added.

Echoing Nyaga’s remarks, Chairman of the Federation of the Public Transport Sector, Edwin Mukabanah, said the recent fuel price increase will likely drive up the cost of goods and transport, with wider effects on the economy.

“We certainly are looking to adjust fares upwards to match the increase that we have to shoulder,” he said.

Adding, “We are going to adjust on a percentage basis, the price increase has gone up by 25 per cent, which means we are likely to go about 25 per cent to 30 per cent. The margin of 5 per cent is because we have not adjusted fares for a very long time,” he said.

Their remarks come hours after the Energy and Petroleum Regulatory Authority (EPRA) announced a fuel price review.

In the latest adjustment, Super Petrol will now retail at Sh206.97 per litre, up by Sh28.69, while diesel will retail at Sh206.84, a sharp increase of about Sh40 per litre.

The spike has already begun to ripple through the transport sector, with the Matatu Owners Association announcing a 25 per cent fare increase, effective immediately.