Uganda waives taxes on electric motorcycle assemblers

July 27, 2025

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Companies assembling electric motorcycles and bicycles in Uganda will be exempted from paying import duties and value-added tax (VAT) on parts and components required for their operations. The Ugandan government has also exempted local electric motorcycle assemblers from paying income tax for the first five years of operation to promote electric two-wheelers. 

  • The tax waivers will make locally-assembled electric motorcycles cheaper, which will boost adoption. It will also encourage more companies to set up assembly plants in Uganda. 

  • Uganda joins countries like Kenya, Rwanda, Ethiopia, Egypt and Nigeria which have rolled out incentives to boost local assembly of electric motorcycles and scooters ranging from tax breaks and subsidies to funding and R&D support. 

  • Our take: With its relatively low cost of production and power prices, Uganda could lead the region in electric motorcycle production… Read more (2 min)

If a motorcycle breaks down and spare parts are not readily available, the rider, who relies on it for his or her daily income, is forced off the road and loses income for hours or even days. For petrol-powered motorcycles, spare parts are available at every other parts shop. But this is not the case for electric motorcycles, says Karis, a rider based in Kenya’s capital Nairobi. 

  • Mr Karis continues to use a petrol bike he has used for years, but a number of his colleagues use e-bikes from local firms. Unlike his bike, for which he can easily get spare parts, he watches his colleagues agonise over where to get parts for their e-bikes.  

  • “The (electric motorcycle) companies haven’t brought their services closer to the people. If your bike breaks down, you must find means to carry it to their offices for repair,” he says. 

  • Read his full view here… (2 min)

Kenyan motor vehicle assembler Associated Vehicle Assemblers Ltd (AVA) has the capacity to produce 10,000 EVs per year, Managing Director Matt Lloyd tells Mobility Rising in an interview. The company is currently working with 13 EV clients, says Mr Lloyd. Although between 85–90% of the assembly process is similar to that of fuel vehicles, AVA opted for a dedicated EV line. 

  • Mr Lloyd has been Managing Director at AVA for nearly five years, a period marked by increasing interest in EVs. He was previously Chief Officer of Shared Services at Simba Corporation and now leads AVA’s EV assembly initiatives.

  • AVA observed that many new EV players lacked local expertise and were considering establishing their own costly manufacturing facilities. To reduce entry barriers, AVA introduced contract assembly, enabling OEMs to test the Kenyan market with minimal risk or upfront investment, says Mr Lloyd.

  • Click here to read the full conversation… (2 min)

Marumbo Sichinga, East Africa Expansion Lead at Kabisa, speaks during an event

 

Events

🗓️ Plan for Uganda’s National E-mobility Expo (Sept 18)

🗓️ Save the date for Kenya’s Public Transport Summit (Nov 26)

🗓️ Register for E-Mobility and Infrastructure Africa in Kenya Summit (Nov 26)

Jobs

💼 Become a Direct Sales Officer at Dodai (Ethiopia)

📋 Apply for Inventory Officer’s role at MAX (Nigeria)

💻 Spearhead digital marketing at Charge (South Africa)

Various 

🚴 Three cyclists from Kenya begin a 15,000 km journey to COP30

🚗 South Africa launches locally produced BMW X3 hybrid

💵 BYD and Absa South Africa partner to promote consumer financing

Seen on LinkedIn 

Alex Munene, Founder of Advanced Mobility Centre, says, “While EVs have much less maintenance cost & parts compared to (fuel vehicles), their maintenance tools & processes are much more specialized and need trained personnel.”