Kenya’s power utility unveils charging stations plan

From the newsletter

Kenya’s national electricity utility Kenya Power plans to install 45 electric vehicle charging stations in six counties across the country over the next one year. The new network of chargers will make the company one of Kenya’s largest charging station providers. Kenya Power has already installed three chargers in the capital Nairobi, which have attracted high demand.    

• Kenya Power has enjoyed a monopoly in Kenya’s electricity distribution for decades, but its position is being threatened by the loss of customers to solar PV, forcing it to turn to EVs as a revenue driver.

• The number of EVs in Kenya remains small, with about 5,294 vehicles registered in the country in 2024 but this is projected to grow. Kenya Power plans to sell more electricity through EVs. 

More details

• Kenya Power, which hosted its 3rd Annual E-mobility Conference and Expo this week, has announced a plan to install the chargers across six counties in the next one year. The chargers will be installed in Nairobi, Nyeri, Kisumu, Eldoret, Nakuru, Mombasa and Taita Taveta counties.

• Out of the 45 EV chargers, six will be located at strategic locations within the Jomo Kenyatta International Airport. So far Kenya Power has installed three EV chargers within Nairobi, the company added in a statement.

• It comes at a time when Kenya’s electric mobility sector is experiencing a period of rapid growth. Currently, there are about 9,047 EVs registered in the country compared to 2,694 and 5,294 that were registered in 2023 and 2024 respectively.

• The growth of electric mobility has been partly spurred by various state-backed initiatives that have been undertaken to create an enabling environment, including the introduction of the E-mobility tariff in the current electricity tariff control period. A steady decline in global EV prices has also boosted their appeal to buyers. 

• Kenya Power has seen fluctuations in revenue in recent years, and profitability has been inconsistent due to high operating costs and debt servicing. The company has been working to improve efficiency and reduce costs, but finance costs remain a significant burden.

• These issues come at a time when the utility has been losing a number of its large power customers who are turning to solar and other own-source power generation. This has forced the company to explore alternative ways to raise revenue, including its expansion into EVs and internet service provision.

• Kenya Power stands in a good position to become a major EV player. It owns a vast network of power infrastructure across the country, which it can use to set up charging stations at a lower cost than private developers. It also has a vast capital base and can access concessional financing from multilateral financiers like the World Bank for expansion.  

Our take

• The advantages that Kenya Power possesses in scale, countrywide network and capital could make it the country’s leading EV charging company. It means that the utility can offer charging services at lower prices than private firms, which could boost the adoption of EVs.

• African governments should support their electricity utility companies to establish EV chargers at scale. This support could be in the form of incentives such as tax breaks and holidays and concessional financing.

• Kenya Power should explore offering AC chargers, which are used to charge EVs at home, to their customers as part of their electricity package. This would involve allowing buyers to pay for the chargers over time through their monthly electricity bills.