Kenya's EV sector agonises over 'ideal' business model

The 100 per cent NETA V electric vehicle showcased by MOJA EV Kenya Limited to convince digital taxi drivers to go green at Sameer Business Park in Nairobi, on May 31, 2024. [File, Standard] A recent spat between a disgruntled customer and Spiro Kenya, an electric motorbike company, that spilled to social media, may be a foreshadowing of the challenges that lie ahead for the sector. In this tiff, which forced Spiro Kenya to issue a statement, one challenge is clear: the future of battery technology. The evolution of battery technology is what will ultimately determine who owns the electric vehicle. In the Spiro case, the customer argued that his motorbike had been inactive for several days, and Spiro Kenya repossessed it. Spiro Kenya issued a rebuttal on December 15, 2025, stating that the repossession was done to protect the integrity of the battery. The company explained that while the motorbike might belong to the rider, the battery is Spiro's. "Our batteries remain Spiro-owned assets and are managed through a structured system designed to ensure safety, availability and long-term performance across our network," said the firm. Spiro argued that the battery management system is meant to protect riders, assets, and the broader network. The firm, however, acknowledged that this policy may not sit well with a section of its clientele. "We are, therefore, reviewing how exceptional cases are identified and handled to improve our communication," the firm added. The battery is an important, if not the most vital, part of an electric vehicle or motorbike. And as the country gradually embraces EVs, who owns the battery is the most important question because they may as well be the ones controlling the business. "Currently, there is no large-scale EV battery manufacturing. EV batteries are imported (typically from Asia) either as part of vehicles or as separate units for assembly," says the Kenya Institute for Public Policy Research and Analysis (Kippra) in its latest Kenya Economic Report. It adds that there are, however, early moves to establish this capacity. "Notably, a deal with Neta (Hozon) - a Chinese EV manufacturer - will include setting up local assembly plants with battery assembly lines," says Kippra in the report, adding that the Energy and Petroleum Regulatory Authority (Epra) released Battery Swapping Infrastructure Guidelines in 2024 to spur battery swapping stations. These swaps, like what Spiro Kenya operates, are local facilities where batteries are handled, maintained, and potentially assembled by professionals. They not only assist in keeping the riders going, but also help with sustainability and safe disposal. "The government and private sector are also keen on battery recycling to recover valuable materials (lithium, cobalt, nickel) and reuse them, which could feed into local battery production once it starts," the report says. Closely guarded However, Kenya's EV sector is still nascent. And since batteries are the key component of this technology, and billions are spent on them during development, they are closely guarded by EV assemblers and dealers. Since the sector is still nascent, Eric Tsui, commercial manager, EVs, at Watu Africa, says Kenya is now in a testing phase, searching to find which business model works well for the industry. Is it swap stations or self-charging? "Time will tell what's the best technology. It will more likely be a hybrid system where there will be self-charging and swapping if you need," he says. The reason why dealers and assemblers still hoard the ownership of batteries, he explains, is that they need to reduce the entry barriers for those embracing the technology. The battery, in most cases, happens to be the most expensive component of the EV. It is the reason why most riders have yet to embrace EVs. Data from the Kenya Economic Report 2024 shows the number of EVs registered in Kenya last year stood at 5,294 from 2,694 in 2023 and 475 in 2022. "The e-mobility sub-sector is still in its early stages compared to global frontrunners, but it has shown promising growth in recent years," says the Kippra-authored report. Potential growth It explains that the annual electric vehicle (EV) registrations increased from just 65 units in 2018 to 5,294 units by 2024, representing a more than eightyfold increase over the six years. "This notable increase demonstrates both the growing awareness of and demand for electric vehicles," the report says. "While the absolute numbers remain low compared to global figures, the rapid acceleration signals a potential growth in the country's EV market, especially as supportive policies and infrastructure development continue to evolve." Tsui says to create a big market for EVs, there is a need to build infrastructure. "You need a problem to fix it," he says. "If there is not enough volume in e-bikes, there is not going to be volume in batteries." For example, he says, if an investor comes to Kenya and sets up 100 swap stations, yet there are only 50 riders with e-bikes, then such a business will not be sustainable. "If you buy the battery under BAS (battery as a service), you need to swap because these guys are not charging you for the battery, they are renting it to you," he says. He agrees that even in Kenya, there are batteries or charging ports that are not interchangeable among different EV assemblers and dealers. Tsui likens this technology to the mobile phone industry, where every manufacturer had their own charging type until the European Union stepped in and insisted on standardisation. "These are the things the government may come in and decide," he says. "One of the dangers of that is innovation. Sometimes when you standardise everything, you kill innovation. You need to find the balance."

Kenya's EV sector agonises over 'ideal' business model

Get Full Access for Ksh299/Week.

Related Topics

Similar Articles

Latest Stories

The Standard Insider

Digger Classified

GET OUR NEWSLETTER

CONNECT WITH US

FOR THE LATEST JOB ADVERTS

Similar Articles

Architects urged to be sustainable while designing and developing houses and buildings

Banks urged to finance investments in blue economy

Kenya leads African push for home-grown capital amid debt burden

AI outpaces regulation as risks grow, report warns

DIGGER JOBS

Digger Motors

Digger Real Estate

Kenya's EV sector agonises over 'ideal' business model

Get Full Access for Ksh299/Week.

Related Topics

Similar Articles

Latest Stories

The Standard Insider

Digger Classified

GET OUR NEWSLETTER

CONNECT WITH US

FOR THE LATEST JOB ADVERTS