Financial and tax incentives for PSVs and Commercial Transporters to convert to electric vehicles

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

Progress includes reduced import duties and taxes on EVs and components, especially electric buses and motorcycles, alongside efforts by Kenya Power and private companies to expand the charging infrastructure nationwide.
BasiGo start-up has grown to produce a monthly average of six electric buses and aims to deliver 1,000 units in East Africa by the end of 2026. This fast-growing example of shifting towards electrical public service vehicles is a result of VAT exemptions on manufacturing EVs.
However, key obstacles persist, including the high upfront cost of EVs for commercial operators, limitations in charging infrastructure outside major cities, regulatory gaps, and a shortage of mechanics and technicians skilled in EV maintenance. Public awareness and trust in the technology also remain low among some consumers. While these hurdles slow the transition, government commitment, private sector investment, and pilot programs offer a path toward more widespread adoption.

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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: March 4, 2026 8:08 am