ENERGYTECHNOLOGY

Kenya Power Kicks Off Tariff Transition for Electric Vehicle Customers

Share
Kenya Power to Deploy 45 EV Charging Stations in Push for Green Mobility
An electric vehicle being charged. (Photo: CBC)
Share

Kenya Power, the state-owned electricity distributor, has commenced an exercise to mop up all customers utilising electricity to charge their electric vehicles (EVs) with the aim of metering them under the E-mobility tariff.

The tariff allows users to enjoy electricity at a discounted rate of KSh16 per unit during peak hours and KSh.8 perĀ  unit during off-peak hours.

It also ensures visibility of energy requirements by the E-Mobility space thereby providing critical data for decision making and planning for future EV energy demand.

ā€œThree years ago, Kenya Power successfully lobbied for a special electricity tariff to serve the E-mobility industry. Our commitment is to create awareness, support the market and drive the adoption of e-mobility in the country. The transition must serve not only private car owners, but also public transport, two and three wheelers, logistics operators, county transport systems, small businesses and ordinary Kenyans who need cleaner, cheaper and more reliable mobility options,ā€ said Kenya Power Managing Director & CEO, Dr. (Eng.) Joseph Siror.

Currently, there are 331 customers metered under the E-mobility tariff, having grown steadily over the years since the Energy and Petroleum Regulatory Authority (EPRA) approved Kenya Power’s request for a special tariff to cater for the e-mobility sector in 2023.

Kenya Power Forecast on EV customers

Kenya Power projects that the number of customers metered under this tariff to hit 1,000 by the end of the current financial year, with further growth projected in the coming years as more customers are onboarded under this tariff, as well as in alignment with the growing uptake of electric vehicles in the country.

Since July 2023 when the implementation of the E-mobility tariff commenced, Kenya Power has recorded surging electricity sales, having grown by 113% over the last 34 months from 13,500 kWh (units) to 1.5 million kWh (units) and earning KSh.382 million in cumulative revenue during the period.

ā€œNovember 2025 was a defining moment, when we crossed the one million units’ threshold in a single month for the first time. Since then, monthly volumes have consistently remained above that level, showing that the market has moved into a new phase of high-volume adoption,ā€ said Dr. (Eng.) Siror.

The Electric Mobility Association of Kenya (EMAK) estimates that the electric vehicles charging will generate KSh.5.79 billion in electricity sales by the year 2030 with an annual metered grid demand of 121 GWh.

Kenya had registered over 35,000 EVs by the end of 2025, comprising mostly two-wheelers, up from a total of 796 EVs that had been registered three years ago.

Riding on the goodwill of sustained policy support and enabling tax incentives, such as duty exemption on importation of the first100,000 EVs, zero-rating of VAT on EVs and lithium-ion batteries, as well as the reduction of excise duty on electric bicycles, electric motorcycles and lithium-ion batteries, uptake of electric vehicles is expected to grow significantly.

Available forecast shows that revenue from electricity sales to the E-mobility sector are projected to hit KSh5.9 billion by 2030.

Cumulative revenues from electric vehicles (EVs) charging reached KSh.382 million for the period between July 2023 and April 2026.

Monthly revenues have skyrocketed from KSh 873,907 in July 2023 to a peak of KSh 35.25 million in February 2026.

Nairobi remains the EV revenue leader, contributing KSh.271.9 million, Coast generated KSh.55 million, North Eastern KSh. 35 million, and West Kenya KSh.11.5 million.

Written by
JACKSON OKOTH

Jackson Okoth writes for Business Today. He specializes in capital and money markets, energy sector, manufacturing, real estate, co-operatives sector, technology and agriculture. He can be reached on email at editor [at] businesstoday.co.ke

Leave a comment

Leave a Reply

Your email address will not be published. Required fields are marked *

PAST ARTICLES AND INSIGHTS

Related Articles
CBK headquarters in Nairobi
BUSINESSNEWSSTOCKS

Central Bank of Kenya Raises KSh 34.4 Bn for Budget Spending in June

Central Bank of Kenya(CBK) received bids worth KSh 34.4 billion from the...

A section of KRA office. PHOTO/@KRACorporate/X
BUSINESS

KRA Steps Up Push for Tax Compliance Ahead of June 30 Deadline

As the June 30 tax return deadline draws closer, the Kenya Revenue...

Paypal Kenya
BUSINESS

PayPal and Hetzner Squeeze African Businesses

History suggests that waiting for established players to reform rarely delivers swift...

Family Bank CEo Nancy Njau
BUSINESSFEATURED ARTICLENEWS

Family Bank Strengthens Credentials Ahead of Listing

Family Bank, considered the 4th largest in Kenya in terms of geographical...