Electric vehicles are crucial for Kenya's industrial and energy transition, providing a means for the country to modernize its transportation and energy sectors.

Kenya, a country with a youthful, educated population and a competitive advantage in renewable energy, is poised to make a significant leap in the electric vehicle (EV) sector. This transition aligns with three national priorities: creating jobs, improving public health, and strengthening the fiscal base.

The electric vehicle sector is already present in Kenya, with BasiGo, a company founded in 2021 and headquartered in Nairobi, leading the charge. BasiGo operates electric bus manufacturing and service, and the Kenyan government has supported its efforts to accelerate the electrification of public transport.

Every EV on the road in Kenya consumes locally generated power for its entire lifetime. This includes EVs that are locally assembled as well as those that are fully built units (FBUs) imported from other markets. The consumption of 50,000 passenger cars annually would be approximately 187.5 GWh, a significant amount considering that Kenya generates over 90% of its electricity from renewable sources, with a substantial surplus capacity during off-peak hours.

The energy consumption of these EVs, totalling approximately 1.19 TWh annually, is about three times the energy Kenya currently curtails from its grid. This presents an opportunity for EV adoption to absorb idle clean energy, spur new investment into green generation, and help lower energy costs.

By treating "green energy as local content" in the automotive industry, EVs can secure jobs in the automotive value chain and anchor new employment in energy, industry, and services. To compete, Kenya should focus on areas with the steepest opportunity curve, such as chargers, battery packs, and key EV components.

The addition of 500,000 electric motorcycles annually would be another 500 GWh, while the contribution of 5,000 electric buses and trucks annually would be approximately 500 GWh. Shifting 10% of new vehicle registrations to EVs would cut urban air pollution, reduce noise, and offer consumer savings through lower operational costs.

However, policy must provide fiscal incentives, innovative financing, and energy and industrial policy integration to promote EV adoption. Importing FBUs results in job export to source markets, and policy should consider this factor to ensure a balanced approach.

Moreover, importing fossil fuels also leads to job export. By focusing on the EV sector, Kenya can not only reduce its reliance on fossil fuels but also create domestic jobs and foster economic growth.

In conclusion, Kenya's competitive advantage in renewable energy and its young, educated population make it an ideal candidate for a successful transition to electric mobility. With the right policies in place, this transition can create jobs, improve public health, and strengthen the fiscal base, all while promoting a cleaner and more sustainable future.

Electric vehicles are crucial for Kenya's industrial and energy transition, providing a means for the country to modernize its transportation and energy sectors.