Financial & Tax Incentives for PSVs and Commercial Transporters to Convert to Electric Vehicles

The Kenya Kwanza government promised to provide financial and tax incentives for public service vehicles and commercial transporters to convert to electric vehicles.

January 2023 – The National Treasury developed a Green Fiscal Incentives Policy Framework that would result in fully electric-powered motor vehicles facing only a 10% duty charge.
February 2023 – The National Treasury has reduced excise duty on electric motor vehicles to 10 per cent to promote the uptake of the cars. According to the Financial Year 2022/2023 Supplementary Estimates No. 1, the reduction only applies to motor vehicles that are 100 per cent electric.
In 2025, the registration fees for electric vehicles have been lowered, toll discounts are available for electric vehicles and low-interest loans for EV purchases are now available.
In 2026, EVs and lithium-ion batteries benefit from 0% excise duty, zero-rated VAT, zero import duty, and reduced e-mobility electricity tariffs; locally assembled EVs are exempt from 20% excise and 25% import duty.

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This Promise Tracker is an independent civic-accountability tool designed to monitor and document the progress of public commitments made by the Government of Kenya. Information presented on this platform is compiled from publicly available sources including government publications, parliamentary records, policy documents, and credible media reports. The classifications used in this tracker represent an evidence-based assessment by the platform’s researchers and should be understood as analytical judgments rather than official government determinations. While every effort is made to ensure accuracy and regular updates, the status of promises may evolve as new information becomes available. This website is not affiliated with or operated by the Government of Kenya.

Last updated: May 14, 2026 1:47 pm