Ruto: We'll boost electric bikes numbers to 200,000 by 2024

The government has pledged to support the acquisition of electric motorcycles in the country to a high of 200,000 pieces by the end of 2024.

President William Ruto said on Tuesday that currently, there are less than 2,000 electric motorcycles manufactured in the country.

"There is a company we have reached an agreement with on how we shall have 200,000 motorcycles by the end of next year." 

He said the government will offer incentives through tax exemptions to support the venture and boost e-mobility in the country.

Ruto said the government has removed five different taxes in the electric motorcycle manufacturing sector. 

“We shall remove the 16 VAT on the electric motorcycles, this means the cost of the electric motorcycles will drop by 16 per cent,” Ruto said.

He was speaking during a visit to Roam Park, an electric motorcycle assembly plant located in Industrial Area, Nairobi.

The President further said spare parts, batteries and components needed for their manufacture will also be tax-exempt.

“So that if you want to manufacture the batteries in Kenya, the cost will be low,” he said.

"There are 14 parts on these electric motorcycles, those will no longer be imported. As years go by, we will increase our capacity and be able to manufacture 40 parts."

The Head of State further revealed that charging stations will also be exempted from taxation and the cost of charging will be subsidized to ensure riders save on the cost of keeping the cycles on the road.

He said as a result, the government will indirectly put Sh400 million into the pockets of riders through savings on what they would have spent on fuel.

“Kama ulikuwa unatumia shilling 600 sasa unatumia 100, si hiyo ni faida ya 500 ile ingeenda kwa petrol?” he posed. “This is the direction we must go.”

The President said all the proposals have been factored into the impugned Finance Act, of 2023 and the initiative will be implemented as soon as the Act comes into effect.

Ruto further said plans are in the pipeline to convert all the 1.8 million motorized motorcycles in the country today into electric bikes in the next three to five years.

“Through that plan alone, we will create job opportunities for more than 100,000 youth,” he said.

He also said the government will work on a plan to provide affordable credit facilities and enable more Kenyans to acquire electric motorcycles cheaply.

“So many people are paying double the price. For a motorcycle that costs Sh150,000, you end up paying over Sh300,000. That is where I want us to make plans and I have already spoken to Industrialization PS Mukhwana to make arrangements. I want the government to intervene so that we reduce the cost of financing."