Kenya is on its way to positioning itself as an East African leader in the transition to electric mobility, backed by substantial funding commitments from both international partners and private investors.
The country’s electric vehicle (EV) sector is seeing a surge in funding offers, starting with a landmark Samurai loan from Japan. Valued at 25 billion Japanese yen (approximately USD 168 million), this seven-year loan, which was offered in August 2025, will be distributed across several sectors.
Kenya’s Ministry of Investment, Trade and Industry (MITI) is set to receive USD 102 million to bolster local EV manufacturing and assembly. This allocation is intended to support domestic vehicle makers and spare parts producers, aiming to reduce reliance on imported used vehicles.
Another USD 37,000 from the loan will be directed to the Ministry of Energy. This funding is specifically for upgrading the national power grid, with a focus on installing high-efficiency transformers to reduce transmission and distribution losses.
The goal is to ensure a more robust and reliable power supply, which is critical for supporting widespread EV adoption and charging infrastructure. The remaining amount will be used for general budget support to enhance the country’s fiscal stability.
Beyond government-to-government agreements, Kenya’s private sector is also attracting considerable investment. EV startups are at the forefront of this growth, securing millions in funding to scale their operations.
BasiGo, a public transport company that specialises in electric buses, recently closed a USD 42 million funding round led by Africa50. The funding will help the company in its goal to deploy 1,000 electric buses in East Africa.
Similarly, Roam, which manufactures electric motorcycles and buses, secured USD 24 million in a Series A funding round, including a debt commitment from the U.S. International Development Finance Corporation.
This influx of capital is complemented by supportive government policies. The Kenyan government has implemented a series of tax incentives, including reduced import duties and the removal of VAT on electric vehicles, to make them more accessible to the public.
These fiscal measures, combined with the development of a national charging infrastructure, are creating a conducive ecosystem for EV growth. Financial institutions are also contributing, with local banks offering specialised loan products at lower interest rates for EV purchases.
