The National Treasury is planning grant financial and tax incentives to public service vehicles and commercial transporters to convert to electric vehicles from fossil fuel powered vehicles beginning the next financial year. The move is expected to help increase adoption of electric vehicles estimated at 350 and bikes according to the Energy and Petroleum Regulatory Authority (EPRA). Majority of 3.5 million registered vehicles in Kenya out of which an estimated 2.2 million are still on the road are powered by either petrol or diesel. National Treasury Cabinet Secretary Prof. Njuguna Ndung’u in the Draft 2023 Budget Policy Statement says the government will seek to leverage the financial support that will be provided to the bodaboda sector through the Hustlers Fund, to develop the nascent electrical vehicle (EV) and motorcycle assembly industry. “Accelerating transition to electric vehicles is a win-win proposition in terms of contributing to Kenyans emission reduction commitment, cheaper transport, and leveraging on the large local and regional motorcycle market to build an electric vehicle industry,” said Prof. Ndung’u. The move by Treasury comes amid rapid development of e-mobility sector in the country supported by KenGen, Kenya Power, Roam and BasiGo. In the financial year 2023/2024 National Treasury expects to embark on financing EV charging infrastructure in all urban areas and along the highways and create incentives for adoption of electric mass transit systems in all cities and towns in Kenya. KenGen which announced plans to commercialize its charging stations last year has already begun piloting its infrastructure with four electric vehicles which are used to collect data and drive policy development. The power generator targets to install at least 30 EV charging stations across the country by end of 2023. Kenya Power which is seeking to transition its fleet to electric from gasoline also plans to establish 30 charging stations across the country by end of this year. BasiGo which is the firm company to rollout electric busses in Kenya already targets to increase assembly of the buses after securing a Ksh 6B investment. https://kbc.co.ke/local-business/article/34798/govt-mulls-tax-incentives-to-accelerate-adoption-of-electric-vehicles