Audio By Vocalize

Kenya’s transport sector has long been central to the economy, yet it remains heavily dependent on imported fossil fuels and exposed to volatile global energy markets. Electric mobility has featured in national discussions for several years, but recent developments suggest the country is entering a more structured, if still evolving, phase of transition.

From the perspective of market participants, the debate is shifting from possibility to implementation.

The launch of the Kenya E-Mobility National Policy 2026 marks an important institutional milestone. For businesses planning long-term investments, this type of direction reduces uncertainty. The policy establishes guiding principles intended to influence future legislation, regulation, and capital allocation.

Viewed alongside the Central Bank of Kenya’s 2025 green financing framework, it signals a growing effort to align transport, energy, and financial systems in support of competitive, lower-carbon growth.

The policy builds on the groundwork laid by the Draft National E-Mobility Policy of 2024. Together, these initiatives position electrification not only as climate action but as an industrial and economic strategy.

At its core, the framework aims to accelerate a gradual shift from internal combustion engines toward a more inclusive electric vehicle ecosystem, consistent with Kenya’s commitment to cut emissions by 32 per cent by 2030 and to reach net-zero by 2050. A defining strength of Kenya’s position is the close relationship between electrification and its power mix. Few markets begin this transition with such a favourable foundation.

Nearly 90 per cent of national electricity generation already comes from renewable sources, including geothermal, wind, and hydropower.

Yet significant off-peak curtailment persists, averaging more than 1,300 MWh (megawatt-hour)  or 1 million watts used for one hour per night. Electrified transport presents one pathway for converting surplus supply into productive economic demand.

Government estimates suggest this unused capacity could theoretically power thousands of buses or hundreds of thousands of motorcycles daily.

Turning theoretical potential into consistent utilisation, however, will require coordination across infrastructure planning, tariff design, and consumer incentives. Progress depends on many actors moving in parallel. No single institution can deliver the transition alone. Early outcomes are likely to be visible but uneven. Electric motorcycles should continue gaining traction, particularly in urban and peri-urban environments where operating economics are clearest.

Fleet electrification will expand selectively, often through pilots or targeted procurement. Charging networks, meanwhile, are likely to deepen in defined corridors before achieving broader national coverage.

The policy’s emphasis on domestic value creation introduces significant opportunity alongside practical limits. Targets for zero-emission vehicles, local-content provisions, and fiscal incentives are designed to stimulate assembly and component activity.

In the near term, these measures may support incremental industrial growth.

Building a fully integrated supply chain, however, will require sustained commitment, workforce capability, and long-term visibility. For long-term investors, consistency of signal is decisive. Inclusion rightly sits near the centre of the framework. Focus on women, youth, and persons living with disabilities, combined with integration into technical education pathways, recognises that human capital will determine how far and how fast the transition can move.

Improvements in skills and awareness should begin to accumulate, even if employment outcomes take longer to register. Financing remains decisive.

High upfront costs continue to limit access, particularly for participants in the informal economy. Where financing structures reduce entry barriers, adoption typically follows. The closer policy alignment moves toward scalable credit solutions, the faster uptake can broaden across income groups and regions. Capital will follow structures that demonstrate repayment resilience and operational discipline.

At the same time, policymakers must address the fiscal implications of declining fuel revenues, including the Road Maintenance Levy. Discussions around alternative mechanisms are expected to progress, but comprehensive reform will take time.

Managing the shift without undermining infrastructure funding will require balance and pragmatism. Motorcycles will remain central to Kenya’s mobility landscape.

Their economics, route flexibility, and role in employment make them natural early candidates for electrification.

Yet durable adoption will depend on more than vehicles.

Reliability of service networks, residual value confidence, and predictable economics will shape market trust. The breadth of stakeholders present at the policy launch reflects recognition that responsibility is shared. Announcing a framework is an essential step, but implementation will determine credibility.

Continued cooperation between ministries, regulators, utilities, financiers, and operators will be necessary as market conditions evolve.

Kenya has launched ambitious reforms before, sometimes with uneven follow-through. What distinguishes the present moment is that meaningful parts of the ecosystem are already functioning.

Private capital is engaged. Technology is improving. Demand signals are visible. The new framework thus has an opportunity to create coherence rather than initiate activity from scratch.

Momentum now exists. Converting that momentum into scale will depend on whether execution advances with the same discipline as ambition. If coordination, financing, and infrastructure development progress together, electric mobility can become a practical feature of daily transport rather than a policy aspiration.

Achieving that alignment will determine how quickly ambition becomes everyday reality.

– The writer is General Manager, East Africa, at Watu