Kenya's electric mobility grows amid financing barriers

Wang Ai Ping CEO MojaEv Kenya limited and Clifford J Aron founder and CEO GreenMax capital group sign a financing agreement for Twenty electric vehicles on 27th May 2025 at Sameer business park,along Mombasa road. [File,Standard] Kenyans are increasingly using electric vehicles (EV), as charging and aftersales service infrastructure continue to grow. Despite the growth, financing barriers has kept underserved communities and entrepreneurs locked out of the green transition. Recent data shows that there were nearly 9,047 registered EVs as of May 2025, marking a significant increase compared to the previous year. The National Transport and Safety Authority (NTSA) registered over 4,000 EVs in 2023, and the government aims for EVs to constitute 5 per cent of all new vehicle registrations by 2025. The EV market in Kenya is dominated by electric motorcycles, which make up about 90 per cent of registrations, but there is a growing number of electric cars. The growth can also be seen on the recent sold out shipment of BYD SHARK 6, an electric pick up track. The Chinese automobile manufacturer, Loxea Kenya, a subsidiary of CFAO mobility Kenya has said the sales success of electric vehicles in Kenya is beginning to grow. According to Jennifer Kinyoe, Loxea Kenya Managing Director, Plug-in hybrid electric vehicles (PHEV), are proving to be a popular customer choice. "The firm has placed a replenishment order to meet the fast-growing demand of its customers," Ms Kinyoe said, noting that they expect to deliver more vehicles by end of the year, as follow up orders and pre orders list grows. "BYD vehicles are proving to be very popular models among discerning local clients in Kenya and beyond, seeking quality mobility solutions," Kinyoe said. According to George Githinji, the chairman Oma services ltd, the electric mobility space has seen excellent performance, both in revenue and customer's positive change of attitude toward it. "People are moving to towards electric mobility due to cost efficiency, such as maintenance costs and customers demand for environmentally friendly e-buses," Mr. Githinji said. For electric mobility, Githinji notes that, it is commercially viable, especially on lease models for short term gains and cash basis for long-term gains. Even with the gains, he notes the space is not without challenges. "Sometimes there is high demand with low supply. Charging stations are few," he said adding that another challenge is unreliable power supply and lack of approvals for new facilities. While noting that is the future of mobility, he reckons that it presents a worrying environment for fuel driven locomotives. "Fuel driven mobility may see, dwindling business and loss of revenue," Mr. Githinji said adding that electric vehicles space holds high investment stake at the moment. Habib Lukaya, Country manager, ROAM has said that Kenya's EV sector has grown rapidly in the last three years. "Kenya is clearly shifting from pilot stage to commercial scale, driven by local manufacturing, better financing, and supportive energy policies," Lukaya . The growth is evident, as shown by the recent data by Kenya Power showing electricity use under the e-mobility tariff jumped from 1.26 GWh to over 5 GWh, marking a 300 per cent rise. Two- and three-wheelers dominate, accounting for nearly 90 per cent of all EVs, with around 300 charging points now available countrywide. Lukaya has observed that EVs adoption is steadily rising, especially among two-wheelers (boda boda) riders and businesses that see clear savings on fuel and maintenance. "Private car adoption is slower due to higher prices, but interest is growing as awareness and options expand," he added. According to the country manager, people are moving towards EVs due to price predictability. "A Roam Air rider saves up to 35 per cent during loan repayment and up to 80 per cent after, compared to petrol bikes," he emphasized cost efficiency. For commercial viability, he says, Matatu pilots show reduced fuel and maintenance costs, while urban taxis benefit from predictable daily mileage and overnight charging. "For motorcycles, it's already proven; Roam riders charge anywhere there's power, making the model simple and scalable. Additionally, they have Roam Hub networks to charge and rent batteries to avoid downtime". He notes that adoption has been slowed down by policy gaps and lack of technical skills. Further, low rider education is still low. ROAM projects that in the three to seven years, two-wheelers, taxis, and delivery fleets will lead growth, followed by matatus and buses as financing improves. "Kenya will move toward a mixed fleet, but battery ownership, not swapping, will define the next phase of EV freedom and value," Mr. Lukaya said. And as electric mobility segment grows, he notes, it signals reduced long term fuel demand and changing service models, fewer oil changes, more battery and electronic work. Additionally, withy major hailing companies targeting full electrification by 2040, petrol powered fleets will eventually phase out in public transport, Lukaya projects. While demand for electric mobility continues to rise, particularly among delivery firms, access to financing has remained a major barrier, limiting many businesses to cash purchases and preventing scale. According to ROAM electric, a mobility manufacturer, there is need to remove financing bottlenecks to accelerates Kenya's shift to clean, cost-efficient mobility. He has pointed out that conventional loans do not fit EV lifecycles. Lenders struggle with asset valuation and repayment models. Further, tailored financing for riders, is a model that can be scaled to fleets and larger vehicles to drive mass adoption. In July 2025, the mobility company, together with Fortune Credit tailored an electric motorcycle financing model to match the real income flows of small business owners and informal sector riders. "The first-ever electric motorcycle financing program is aimed at unlocking access to electric motorcycles for both individuals and businesses," Habib Lukaya, Regional Sales Operations Manager at Roam said. Further, noting that electric mobility is the future of transport in Kenya, he adds "this partnership is about breaking systemic barriers. By offering a locally made, zero-emission motorcycle with a flexible ownership model, we're enabling more riders and businesses to switch to electric, save money, and create jobs". With more EVs registered in Kenya as of May 2025, EV24 Africa reported that sales increased by 150 per cent compared to 2024. "Charging stations have expanded from 67 in 2023 to over 200 in 2025, with plans for 10,000 by 2030," EV24 Africa, an electric car importer, reported that the government incentives like reduced import duties and tax exemptions make EVs more affordable. The report also shows that EVs have lower running costs, "charging is 30 to 50 per cent cheaper than fuel, and Kenya's renewable energy grid ensures sustainable charging". Government incentives, expanding charging infrastructure, and lower running costs have been identified as key factors driving EVs uptake growth. In Kenya today, the Nissan Leaf is a popular EV choice for city drivers and ride-hailing services like Uber and Bolt, BYD Dolphin, Hyundai Kona Electric, BYD Atto 3, and Neta V, among others. "Barely two weeks into the launch of the BYD SHARK 6, we have successfully sold the first five units shipped last month," Kinyoe said. In the first quarter of 2025 alone, the Chinese automobile manufacturer has set a new sales record in the UK, selling 9,271 cars. The new sales record is not only BYD's (Build Your Dream) UK's most successful quarter since the company introduced passenger cars in March 2023, but also means the company sold more cars in the most recent quarter than the whole of 2024 combined. This achievement has propelled BYD's UK market share to 1.6 per cent from 0.45 per cent in 2024. In March alone, the total market share was 1.8 per cent, in exactly two years since the company launched passenger cars in the UK.

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