The Kenyan government is stepping up its efforts to promote electric vehicles (EVs) by considering the removal of a monthly cap on cheaper electricity for EV charging. This move aims to accelerate the adoption of e-mobility in the country.

Currently, EV-battery charging firms can access up to 15,000 kilowatt-hours (kWh) at reduced rates before being charged at normal tariffs. This allowance, which offers reduced rates of Ksh 8 per unit during off-peak hours compared to the standard Ksh 20 per unit for small commercial customers, has provided an attractive incentive for EV owners.

Once this limit is reached, they are charged the standard commercial rates, which are still lower than the rates for individual consumers.This cap was introduced to protect Kenya Power, the national electricity provider, from potential revenue losses due to the discounted rates.

The Proposed Change:

• In response to requests from EV firms experiencing a surge in demand for charging, the Energy and Petroleum Regulatory Authority (Epra) is exploring the possibility of removing the 15,000 kWh limit.
• This would allow EV owners to consistently benefit from cheaper electricity for charging their vehicles.

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Finding the Right Balance:

Epra acknowledges the need to find a balance between:

• Encouraging EV adoption: By offering lower electricity costs, the government aims to make EVs a more attractive option for Kenyans.
• Ensuring Kenya Power’s financial sustainability: The discounted rates should not significantly impact Kenya Power’s revenue stream.

The Path Forward:

Epra is considering two options:

• Increasing the limit: Raising the current cap on discounted electricity for EV charging could be a temporary solution.
• Complete removal: Eliminating the cap entirely by June 2026 is a possibility, but this will depend on data collected regarding EV adoption in the coming years.

Recognising the potential of e-mobility, Kenya Power is also taking steps to support its growth:

• Installing Charging Stations: The company plans to install 35 EV charging stations across the country, making it easier for EV owners to find charging points.

This reflects the utility company’s commitment to supporting the infrastructure needed for the successful integration of electric vehicles into the transportation ecosystem.

• Investing in EVs:Kenya Power is actively seeking to procure EV chargers and related compact substations to establish EV charging stations at different offices, signalling a proactive approach to investing in sustainable transportation solutions.

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The investment in EV charging infrastructure is part of a broader commitment by Kenya Power to transition its fleet from traditional vehicles powered by diesel and super petrol to electric vehicles and e-motorbikes.

This strategic shift aligns with the global trend towards sustainable transportation and positions Kenya Power as a forward-thinking organisation embracing innovative solutions for a greener future.

Overall, these developments underscore the concerted effort to pave the way for electric mobility in Kenya. The collaboration between regulatory bodies, government agencies, and utility companies highlights a collective commitment to creating an enabling environment for the increased adoption of electric vehicles.

As the country looks towards a more sustainable and environmentally friendly future, these initiatives represent significant steps in shaping the transportation landscape in Kenya.