President Ruto: Kenya to produce 200K electric boda bodas by end of 2024
The government has announced a plan to reduce
taxes on the cost of production of electric vehicles and motorbikes in the
President William Ruto, who spoke on Tuesday
after visiting Roam Park motorcycle assembly plant, said his administration was
focused on increasing the production of e-motorbikes from the current 2,000 to
200,000 by the end of 2024.
want to have over 200,000 electric boda bodas by the end of next year. We have
agreed with some companies and that is why we have reduced five different
taxes,” he said.
part of the plan to cut costs on production of electronic vehicles and
motorbikes, the President said the Finance Act as proposed by the Kenya Kwanza regime
had a plan to reduce key taxes in order to bring down the costs of production
and market price.
Ruto said the government had put measures to remove Value Added Tax (VAT) on
spare parts and batteries as well as on all charging equipment for the e-bikes.
also noted that the government would also reduce VAT for electric boda bodas
which would ensure the buying price goes down by 16 per cent in a bid to make
the bikes affordable.
have policy intervention in our Finance Bill specifically targeting e-mobility,
our boda boda people specifically because they contribute almost Ksh.1 billion
to the economy every day,” he said.
policy interventions we have included from zero rating on all e-bikes, motor
vehicle spare parts, removing taxes on charging equipment, battery and lithium
and the whole manufacturing of gadgets and instruments used in e-mobility.”
Ruto likewise said the electricity costs at charging stations would be cut so
as to ensure the riders can maximize their profits and pay less to charge their
Head of State consequently hailed the move reiterating that it would guarantee
a safer future free of pollution after the country fully adopts e-mobility to
combat climate change.
can see just by intervening in a minimal way, we can be able to bring down the
cost of our e-mobility infrastructure by between 16 and 20 per cent just by
adjusting taxes here and there,” he explained.
“We need a
tax infrastructure globally that is going to respond to climate change financing
that we’re looking at.”
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