The government signed a memorandum of understanding on 6 October 2026 for a Ksh390 billion investment in electric vehicle manufacturing and green mobility infrastructure.

The plan calls for two assembly facilities: one capable of producing 50,000 four‑wheel vehicles annually and another for up to 100,000 two‑wheelers and light‑mobility units each year.

A network of 1,000 solar‑powered charging hubs and a digital platform designed to manage up to 100,000 electric vehicles are also included in the proposal.

President William Ruto described the MOU as a framework for an integrated green‑mobility ecosystem and one of the region’s largest electric‑mobility commitments.

The agreement is projected to generate roughly 2,000 direct jobs and more than 20,000 indirect positions across suppliers, logistics and service providers, with an additional potential of 80,000 roles in fleet management.

Ruto emphasized that local assembly will reduce Kenya’s reliance on imported finished vehicles, keeping more economic value within the country and expanding opportunities for technicians, engineers and automotive businesses.

Policy backdrop and market growth

The deal aligns with Kenya’s National Electric Mobility Policy launched in February 2026, which seeks to attract investment in EV manufacturing, assembly and charging infrastructure.

According to the Ministry of Roads and Transport, cumulative electric‑vehicle registrations rose to 39,324 by the end of 2025, up from 1,378 in 2022.

The government has introduced tax incentives such as zero‑rating VAT on electric buses, bicycles, motorcycles and lithium‑ion batteries to spur adoption.

Special green number plates have also been allocated to electric vehicles as part of the broader sustainability push.