Kenya has signed a memorandum of understanding for a proposed KSh390 billion ($3 billion) electric vehicle investment, which would give the country its most ambitious EV manufacturing plan to date. The Government of Kenya and Endelevu Enterprise Corporation signed the agreement on 6 October 2026 at State House, Nairobi, with President William Ruto in attendance. The agreement covers electric vehicle assembly, charging infrastructure and related mobility services, as Kenya works to build more of the value chain around a market that has expanded rapidly over the past four years.
The proposal includes two manufacturing facilities with a combined capacity of up to 150,000 vehicles a year. One plant would assemble up to 50,000 four-wheel vehicles annually, and the other would produce up to 100,000 two-wheelers and light-mobility vehicles. The project also provides for 1,000 solar-powered charging hubs and a digital platform able to support up to 100,000 electric vehicles. The government estimates that the programme could create about 2,000 direct jobs, more than 20,000 indirect opportunities and up to 80,000 additional opportunities in fleet management.
The announcement arrives in an industry that already has several components in place. BasiGo assembles electric buses and vans locally from completely knocked-down kits through Associated Vehicle Assemblers in Mombasa, and other companies are building electric motorcycle and battery-swapping networks. The Kenya Association of Manufacturers has reported that more than $400 million has already been invested across vehicle assembly, batteries, charging infrastructure and related services. Kenya had 235 EV charging stations in 2025, which placed it second in Africa behind Egypt, and BasiGo and Rubis Energy Kenya are developing fast-charging sites along corridors that include Sabaki, Meru, Nanyuki and Nyeri.
The policy environment is also developing. The National Electric Mobility Policy, launched in February, covers manufacturing, assembly, charging infrastructure, skills and EV adoption, and it introduced zero-rated VAT on electric buses, bicycles, motorcycles and lithium-ion batteries. On 18 September the Energy and Petroleum Regulatory Authority amended the e-mobility tariff framework, replacing the former 15,000 kWh monthly ceiling with an Energy Consumption Threshold mechanism. In August the government and the International Finance Corporation agreed to support the development of an E-Mobility Bill and regulations, alongside work on fiscal and non-fiscal incentives.
Local content remains a central question. The Kenya Association of Manufacturers has argued that proposed duty-free treatment for more than 100,000 electric vehicles should be linked to local assembly, component production, investment and employment. The economic impact of the Endelevu proposal will depend on how much of the vehicle value is created in Kenya, including components, body parts, electronics, software, batteries and maintenance services.
President Ruto said the ambition is to produce electric vehicles for East Africa and the wider African market, with locally manufactured vehicles potentially accessing regional markets where they meet applicable EAC Rules of Origin. The proposed capacity figure represents manufacturing capacity and does not forecast annual sales of 150,000 vehicles. Regional demand for motorcycles, buses, vans and other commercial vehicles could help determine whether the plants reach commercially viable utilisation, and companies such as ARC Ride, which raised $33.3 million in September to expand battery swapping across Kenya and other African markets, are already approaching the region in this way.
The agreement is a non-binding MoU, and publicly available information does not yet establish the financing structure, factory locations, construction schedule or production start date. Kenya has not announced that the KSh390 billion has been deployed. President Ruto acknowledged this stage of the process and directed the investment ministry and Invest Kenya to facilitate approvals, land and infrastructure. If the project reaches production, it could give Kenya’s developing EV industry an industrial anchor.
