Watch out for new EV taxes & incentives in East Africa

June 17, 2025

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Kenya has introduced 16% VAT on inputs used to make passenger motor vehicles locally, and on locally assembled tourist vehicles, affecting both fuel and electric vehicles. This is one of several new taxes that EVs in three East African countries will be subjected to as governments aim to raise additional revenue to fund their latest budgets. 

  • Raw materials and inputs used to make passenger motor vehicles are currently exempted from VAT in Kenya, which has the biggest EV market in the region. The new tax will raise costs for manufacturers, who will likely pass the extra burden on to buyers.  

  • Kenya’s new tax reflects a trend where countries prioritise immediate budget needs at the expense of the EV sector. This could slow down the momentum picked up in recent years. 

  • Our take: At most, governments should consider tiered or time-bound taxes that gradually phase in as the sector matures… Read more (2 min)

Africa’s top 25 electric mobility companies have increased their workforce by 36% in the past one year, according to LinkedIn data analysed by Mobility Rising. It shows that the number of individuals working at the companies grew to 3,700 in June 2025, marking a growth of 1,315 from June 2024. This shows just how fast EV companies are hiring talent to scale operations. 

  • The companies we analysed are Tesla, BYD, Spiro, Ampersand, Max, BasiGo, MellowVans, Rubicon, Mbay Mobility, Kiira Motors Corporation, Blu EV, Zembo, Charge, Roam Electric, Shift EV and Dodai. Others are Gogo Electric, Kofa, ARC Ride, Solar Taxi, Kabisa, Saglev, Wahu Mobility, EVTech and Tri. 

  • Mobility Rising analysed data of workers with LinkedIn profiles working at these companies. For companies with a global presence such as Tesla and BYD, we only selected workers that are located in Africa. 

  • Our take: The increase in demand for skilled workers by EV companies calls for greater focus on training and skills development by African countries… Read more (2 min)

Op-ed: What Africa needs for mass EV adoption

Despite global momentum for electric vehicles, Africa is not yet ready for widespread adoption, argues Karabo Mokgonyana, a renewable energy campaigner at Power Shift Africa. While the EU and countries such as China benefit from generous subsidies, reliable electricity and extensive infrastructure, Africa faces deep-rooted structural challenges. 

  • Ms Karabo highlights that with an average EV price of $53,000 and a regional GDP per capita of just $1,574, cost remains a critical barrier. Even pilot EV projects face limits due to unreliable electricity, lack of charging stations, poor roads and overheating risks.

  • We publish a variety of opinions regardless of whether we agree with them or not (and we had a long debate about this one). Yet we agree the sector needs exposure to opinions of all kinds.

  • Read Ms Karabo’s full opinion here… (4 min)

Kenyan e-mobility stakeholders during a benchmarking tour in Germany last week

Events

🗓️ Register for E-mobility Management Accelerator training (July 18)

🗓️ Plan for the Second Africa Climate Summit in Ethiopia (Sept 8)

🗓️ Participate in the EV Mobility Expo in Kenya (Dec 4)

Jobs

👩🏻‍💻 Become a Lead Data Scientist at BasiGo (Kenya)

🔌 Apply for the Charging Infrastructure Technician role at BasiGo (Kenya)

🛠️ Lead assembling at Dodai (Ethiopia)

Various 

🏍️ Zeno launches East Africa hub in Nairobi, Kenya

🏍 Wahu Mobility announces its inaugural board of directors

💰 How Mogo Uganda is bridging the EV Ecosystem access gap

Seen on LinkedIn 

Muthoni Njoroge, Executive Director at Credence Africa, says, “A just, inclusive e-mobility transition cannot be engineered top-down. It must be co-created with those who move the country, finance the fleets, and govern mobility daily. “