The cheapest and most expensive electric cars revealed

From the newsletter

The Toyota C+ Walk S, which carries one passenger, has the lowest import price of any electric car in Kenya at just $6,046, according to a list of 357 EV models released by the country’s tax authority. The import price for the Porsche Taycan GT is the highest at $382,475, while the average import price of all the electric car models is $89,888. 

• The new Current Retail Selling Price (CRSP) list has been published by Kenya’s tax agency to inform taxes payable by car importers effective July 1. The agency has raised the import tax from 25% to 35% and increased the exchange rate to the US dollar from Ksh100 to Ksh130, making electric cars costlier. 

• The above are baseline prices used for tax payment purposes, and actual market prices are significantly higher. For example, the baseline price for a Hyundai Ioniq 5 is $56,000 in the CRSP while the actual price at Hyundai’s official dealer in Kenya is $104,200. 

More details

• Of the 357 electric car models, only 22 cost less than $30,000 to import. The majority of these cheaper EVs are Japanese namely Toyota, Nissan and Mitsubishi as well as Chinese (Dongfeng, Neta), British (Vauxhall Motors) and French (Peugeot). 

• BYD, the world’s leading manufacturer of EVs, has the largest number of models, the majority of which have mid-range and high-end prices. The cheapest BYD car to import is the Atto 2, which comes in at a price of $56, 810 while the most expensive is the Tang, which comes with a price tag of $211,330. 

• On the higher end, German car manufacturers, especially Porsche and BMW, have the most expensive electric cars. Besides the Porsche Taycan GT which is imported at a price of $382,475, the Porsche Taycan Turbo S also costs $334,087 to import, the second most expensive. The BMW M4 Coupe costs $221,309 to import into Kenya, while the Hummer EV 3X costs $210,732. 

• Once these vehicles are imported, they are subjected to various taxes, levies and fees, including import duty (25%), Value Added Tax (16%), excise duty (10%), Railway Development Levy (2%), Import Declaration Fees (3.5%) among others. In addition to the importer’s margins and operational costs, these taxes significantly increase the retail price.  

• These new changes are set to raise the cost of electric cars starting next month, which could derail the growth of the sector, which has gathered steam in recent years. The number of EVs in Kenya has jumped by more than 20 times over the last five years alone to total more than 5,294 units in 2024. However, the majority of these are electric motorcycles. 

• At the current rate of growth, Kenya’s EV stock may reach more 70,000 units over the next five years, which will be primarily driven by the boom in electric motorcycle sales. The development of local assembly plants by EV firms such as Spiro, Roam, Moja EV, BasiGo and AVA among others may reduce costs and import dependence. 

Our take

• The Kenyan government should consider tax exemptions or subsidies specifically for EVs below a certain import price to encourage uptake among private car buyers and small businesses. 

• Kenya should reverse its proposed additional taxes on EVs and related components and instead fast-track incentives for firms like Roam, BasiGo, and Spiro to expand local EV assembly, including zero-rating of EV parts and expedited licensing, to cut reliance on costly imports.

• The cost of loans from commercial banks and asset lenders is very high in Kenya. Alternative financial institutions like saccos, which offer loans to members at much cheaper rates, can play a pivotal role in financing EVs.