Gov’t Reduces Taxes For Electric Vehicles

The Energy and Petroleum Regulatory Authority (EPRA) has issued new guidelines for companies in the country that operate electric mobility charging stations.

Energy Cabinet Secretary Davis Chirchir revealed the government has approved a special e-mobility tariff and exempted electric vehicles from Value Added Tax (VAT) during the launch of the Electric Vehicle Charging and Battery Swapping Infrastructure Guidelines, 2023.

During the event, Chirchir also announced that the government has reduced the excise duty on fully electric vehicles from 20% to 10%.

“Locally assembled E-motorcycles are exempted from excise duty and affordability of the electric vehicle batteries has been prioritised through VAT and Import duty exemptions,” Chirchir stated.

The guidelines aim to promote the development of electric vehicle (EV) charging and battery swapping infrastructure in Kenya.

“E-mobility will contribute significantly to our goal of achieving a 100 percent transition to renewable energy by 2030. EPRA data shows that as of July 2023, 91 per cent of the total energy mix in Kenya is from renewable energy resources.

“Electric vehicles are poised to add to this demand, propelling us further into a green energy future,” Chirchir stated.

One of the key provisions of the guidelines is a price cap for public charging and battery swapping stations.

The guidelines also require public charging and battery swapping station operators to display the price at all publicly accessible stations.

This will assist EV drivers in comparing prices and making informed decisions about where to charge their vehicles.

The EPRA has also established a number of other requirements for public charging and battery swapping stations, including the requirement that the stations be located in strategic locations, such as along major highways and in city centres.

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The charging stations must be accessible to all electric vehicle drivers, regardless of vehicle make or model.

EPRA has mandated that charging stations be outfitted with a variety of charging connectors to accommodate various types of EVs.

The agency has also stated that the stations must be operated and maintained by qualified personnel in order to avoid potential disasters.

EPRA stated that the guidelines are a significant step forward in the development of EV charging and battery swapping infrastructure in Kenya.

They will contribute to Kenya’s efforts to reduce its reliance on fossil fuels by making EVs more affordable and accessible to Kenyans.

EPRA Director General Daniel Kiptoo Bargoria, for his part, reaffirmed the agency’s commitment to assisting the transition to green mobility by establishing regulatory frameworks that aim to build confidence in the shift to electric vehicles.

Kiptoo described the guidelines as a precursor to the EPRA’s approval of an e-mobility tariff earlier this year, and they aim to encourage the use of electric vehicles.