In a groundbreaking verdict, the Court of Appeal has ruled that the entire Finance Act 2023 is unconstitutional. Although this decision bears far-reaching consequences in various fields, we at the Electric Mobility Association of Kenya are particularly apprehensive about its effects on our growing e-mobility sector within the country.
The Finance Act of 2023 introduced various measures to incentivize and promote the adoption of electric vehicles and related infrastructure in Kenya. These included amendments to laws such as the Income Tax Act, Value Added Tax Act, and Excise Duty Act.
However, with the repeal of the Finance Act 2023, all e-mobility related provisions have been reversed. This means that any tax incentives, exemptions or duty structures designed to promote electric vehicles are no longer effective.
The courts overturning the Finance Act 2023 has created uncertainty that may disrupt the momentum gained by the e-mobility sector in Kenya. Investors, consumers, and other stakeholders are now facing an unclear policy environment that could slow down or even cripple the growth of electric vehicles and related infrastructure in the country.
As the Electric Mobility Association of Kenya, we urge the government to act swiftly and reinstate necessary incentives and policies that support e-mobility transition. We call upon all stakeholders; policymakers, industry players, EV advocates – to unite efforts in pushing for reintroduction of these critical measures.
The future of sustainable transportation in Kenya relies on having a clear and supportive policy framework for electric mobility. We should collaborate to guarantee that the Finance Act 2023’s repeal does not turn into a significant obstruction for the e-mobility industry.
