An overview of the automotive sector in Kenya: localization and energy, two sides of the same EV COIN – CLEANTECHNICA

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Tobias Alando is right: localization is crucial if Kenya is to unlock a complete promise of electrical mobility. The EV sector is no longer a theoretical opportunity – it is here and is in line with three urgent national priorities: creating jobs, improving public health and strengthening a tax base.

However, if we have success, localization must be framed widely than just building vehicles. For nearly 40 years, he was a real disruptor of the automotive industry in Kenya second hand, now more than 80% of the market. EV are not an enemy – they are lifting for transformation our industrial and energy landscapes.

Each EV on the road consumes locally generated energy throughout its life and sends imported fossil fuels that emit our foreign reserve. Kenya already generates more than 90% of its renewable electricity, with significant excess capacity within hours off -peak hours. The acceptance of EV can absorb idle energy, stimulate new investments in the green generation and – – critically – helps reduce energy costs for households, businesses and manufacturers. In this sense, the energy itself should consider “local content”.

The benefits exceed the economy. Moving 10% of new vehicles to EV would sharply reduce the pollution of urban air, reduced the noise on the streets and unlocked consumer savings through lower operating costs. It is industrialization and environmental health in your hand.

However, to actually compete, Kenya must turn the Towadays assembly into areas where the occasion curve is the steepest – “chargers, battery sets and key EV components”. These technologies are scalable, transmissible and well for building regional value chains. From there we can undergo low -volume commercial EV and Eletal passenger cars.

The principles have to match on three fronts:

1. Tax incentives that prefer newer, cleaner models and penalize older imports through reverse taxation.
2. Innovative financing, which makes the local assembled EV available through lower deposits, fit rates and longer functions.
3. The integration of energy and industrial policy, ensuring adoption EV demonstrates AMS for green energy and local production.

Localization – energy as local content

The current competitive advantage Kenya is clear: we generate more than 90% of our renewable electricity. This is the basis of most of yourself. Add to this a youthful and educated population of hunger for opportunities, and it is clear that the path to prosperity is to create jobs – formal and infmal – anchored in the energy available. For most of these tasks, electricity costs are the only largest entry.

Therefore, as we discuss in the automotive industry, we must expand this definition. It can’t be just part and assembly. The renewable, locally generated power is local content.

We will agree on this: import of fully built units (FBU) Export tasks to source markets. But too important fossil fuels. The critical difference is that every EV, where locally assembled or imported fully assembled, runs to 100% locally generated power. This is reflected in local jobs not only in the automotive sector, but also across production, services and a wider economy.

Here is the range of what it means. Scenario B (medium) shows potential over the next 5-7 years:

1. 50,000 passeger cars would consume about 187.5 GWh/year.
2. 500,000 electric motorcycles ** would add another ** 500 GWh/year.
3. 5,000 electric buses and trucks would contribute about 500 GWh/year.

Together it is ~ 1.19 TWh carefully, or about three times the energy of Kenya is currently shortening from its grid. After absorbing today’s missing 300-400 GWh, the growth of EVOs would require 120-150 MW of new capacity of net production. This is not a burden, it is an opportunity. The acceptance of EV will become an engine that cleans new geothermal, wind and solar projects to the market and creates a confident cycle of cheaper energy and strong industrial completeness.

By handling the “green energy as local content, EV provides us with a double victory: they provide jobs in the value chain of the car and at the same time anchor new employment in energy, industry and services. Thus, the localization and electrification that cooperates can transform the Kenius economy.

Moses Gachemi nderit He is the CEO of Basigo Kenya, who runs a fee for electrification of public transport through local assembled electric buses and innovative financing of paid payments. With more than 25 years of business experience and leadership in mobility, housing, hygiene and media, the opening solutions were in the opening solutions in the African markets. As a co -founder of the Association of Electrical Mobility in Kenya (Emak) and the Vice -Chairman of the Board of Directors of NTSA, Moses continues to create policy and business environment for sustainable mobility in East Africa.