Kenya Power Invests in Electric Vehicle Charging Infrastructure as Demand Surges

Kenya Power, the national electricity distributor, has organized an e-mobility forum to address the growing demand for electric vehicles (EVs) in the country. The forum comes as EV purchases in Kenya increased five-fold in 2022, prompting Kenya Power to plan a Ksh.258 million ($1.93 million) investment in charging stations over the next three years.

The investment will cover the cost of purchasing electric cars and motorcycles for Kenya Power's own use, as well as the establishment of charging stations across the country. The first Ksh.6.5 million charging station has already been launched, with plans to set up nine more stations by July 2024. Kenya Power aims to use the charging stations to collect data that will inform its future support for the growing electric mobility industry.

Why this matters: Kenya's embrace of electric vehicles aligns with global efforts to reduce carbon emissions and combat climate change. The country's energy mix, with 85% of energy generation from renewable sources, is highly conducive to supporting e-mobility and reducing reliance on imported fossil fuels.

In addition to Kenya Power's initiatives, taxi-hailing companies like Bolt are partnering with fintech platforms like M-KOPA to offer affordable electric motorcycles to their drivers. This collaboration provides drivers access to electric bikes at discounted rates, with the potential to cut vehicle operating costs by up to 75%. Bolt aims to have 1,000 electric motorcycles operational by the end of 2023, with a target of over 5,000 within the next two years.

The increased uptake of EVs in Kenya is evident, with the National Transport and Safety Authority registering 2,694 new EVs in 2023, up from 475 in 2022. The country has set a goal of increasing the share of EV imports to 5% of the total by 2025. In September 2023, Kenya developed a framework for EV charging and battery swapping infrastructure to accelerate EV adoption and ensure the establishment of safe, reliable, accessible, and affordable charging services.

Kenya's Principal Secretary of the Ministry of Energy and Petroleum stated that the demand for power is expected to increase, with 20-25% of the power demand coming from the e-mobility sector by 2030, which will lead to lower power bills. The government is leveraging the country's abundant renewable energy potential to power the transportation sector and reduce reliance on imported fossil fuels.

Key Takeaways

• Kenya Power to invest $1.93M in EV charging stations over 3 years
• EV purchases in Kenya increased 5-fold in 2022, prompting infrastructure investment
• Kenya's renewable energy mix (85%) supports e-mobility and reduces fossil fuel use
• Taxi companies partner with fintech to offer affordable electric motorcycles to drivers
• Kenya aims to increase EV imports to 5% of total by 2025, expects 20-25% power demand from e-mobility by 2030