Market Size: Electric Vehicle Sector Investments
Kenya is undergoing a transportation revolution, shifting away from internal combustion engine (ICE) vehicles towards electric vehicles (EVs). The government aims for EVs to constitute 5% of all new vehicle sales by 2025 and 100% by 2050. Though still nascent, the EV market is showing promising growth, with annual sales growing from 65 in 2018 to 4,047 in 2023, representing roughly 1.7% of total new vehicle sales, putting the country on the right path to achieving its goals.
Between 2018 and 2022, EV sales grew 12x but went up 5x between 2022 and 2023 alone. The sharp rise in growth in 2023 was due to increased market awareness, the broader availability of EVs, and supportive government policies implemented, such as the exemption of locally assembled EVs from the 18% VAT and the reduction of import duties from 30% to 25%, making EVs affordable.
The number of EV startups has risen,
