As the Electric Mobility Association of Kenya, we have grave concerns about the implications of the proposed 2024 eco-levy on the nascent electric vehicle (EV) industry in our country.
During a recent interview, the secretary of our association Dennis Wakaba reiterated our stance that re-introducing the eco-levy in Kenya’s 2024 Finance Act is not advisable. The reason being it could prove detrimental to electric mobility growth and development within the country.
“At this critical juncture, when e-mobility companies are still striving to achieve capacity, mass production and local manufacturing processes; the additional financial burden of eco-levy could have a severely detrimental impact.”
- Affordability concerns: The eco-levy is likely to increase the upfront cost of electric vehicles, making them less accessible to the average Kenyan consumer. This could threaten the inherent cost-saving benefits of EVs and slow down mass adoption.
- Stunted Market Growth: The reduced affordability of electric vehicles may lead to stagnation in demand, which could discourage further investments and hamper the development of a robust EV ecosystem in Kenya. This could derail the momentum we have worked hard to build.
- Uneven Playing Field: This would put EVs at a disadvantage compared to conventional higher-emitting options and potentially cause an imbalance in the market.
- Missed Opportunities: The revenue generated from the eco-levy should be strategically reinvested to support electric mobility infrastructure, consumer incentives, and supply chain development. Failure to do so would result in a missed chance to accelerate Kenya’s sustainable transportation future.
As the Electric Mobility Association of Kenya, we urge policymakers to carefully consider both timing and implementation of the eco-levy. A balanced approach that protects interests of both EV industry and Kenyan consumers is crucial at this critical juncture.
We are prepared to work together with the government to guarantee that the eco-levy supports rather than undermines our shared dream of a Kenya powered by electric mobility and low-emission. The journey ahead is difficult, but we can effectively manage this transition with appropriate policies in place.
