By CG reporter

MOMBASA, Kenya

President William Ruto has announced that the first 100,000 electric vehicles (EVs)imported into Kenya will be completely exempt from import duty.

It is a grand gesture aimed at saving Kenyans from a crushing domestic fuel crisis where diesel and kerosene prices have skyrocketed by over 118 percent.

The policy, broadcast live from State House Mombasa, applies to both public service and private vehicles.

In a delightfully ironic twist, the government is introducing tax holidays for high-tech imports just as ordinary motorists wonder if they can afford to fuel their current internal combustion engines long enough to drive to an EV showroom.

Critics note the exquisite timing: the state is gracefully surrendering import tax revenues while simultaneously spending KSh 28.19 billion on fuel price stabilization.

For the local transport sector, the implications are beautifully chaotic. Nairobi’s famous, noisy, smoke-belching diesel matatus (minibuses) are expected to transition into near-silent, battery-powered eco-pods.

This leaves commuters to wonder if the traditional, aggressive matatu culture can survive without the comforting aroma of exhaust fumes.

Meanwhile, the administration is leading by example, confirming the procurement of 3,000 electric vehicles for the Ministry of Interior so that security and administration officials can chase crime eco-friendly and quietly.

The financial ripple effects are hitting Mombasa’s used car importers like a rogue wave.

These dealers, already reeling from the Kenya Revenue Authority (KRA) policy shifting to physical inspections—which inflated duties on traditional cars by over 80 percent—must now compete with tax-free electric imports.

EV buyers can confidently bypass the standard 10 percent import duty on completely knocked-down units, alongside hefty taxes on parts.

However, sector experts gleefully point out a beautiful contradiction: while import duty drops to zero, the latest Finance Bill simultaneously proposes a 16 percent value-added tax (VAT) on electric vehicles and lithium batteries, ensuring the taxman always wins.

Meanwhile, Kenya Power is preparing for a prospective surge in overnight charging demand. Optimists argue that late-night charging will bridge the off-peak energy gap.

Skeptics, however, point out that Kenya’s interconnected grid capacity has been frozen at 3,192 MW since late 2024.

Ruto assured the public that the nation faces no absolute fuel shortage, urging calm while steering the country toward an electric grid that everyone hopes won’t blink when 100,000 cars plug in at once.