Kenya has signed a memorandum of understanding (MOU) for a proposed Ksh390 billion investment in electric vehicle manufacturing and green mobility.The agreement was signed on Tuesday, October 6, 2026, with the project covering electric vehicle assembly, charging infrastructure, and related value chains.President William Ruto said the MOU provides a framework for an integrated green mobility ecosystem, describing the proposed investment as one of the largest electric mobility commitments in the region.Under the proposal, one plant would have the capacity to assemble 50,000 four-wheelers, while a second facility would produce up to 100,000 two-wheelers and light mobility vehicles annually.The investment is expected to create about 2000 direct jobs and more than 20,000 indirect opportunities through suppliers, logistics, and service providers, and up to 80,000 additional opportunities in fleet management.Ruto said that this project would help Kenya reduce its reliance on imported finished vehicles by increasing local assembly and value addition to the country.He also urged that producing vehicles locally would help keep more economic value in the country while creating opportunities for technicians, engineers, suppliers and other businesses involved in the automotive sector.The project also included 1000 solar-powered charging hubs and a digital platform capable of managing up to 100,000 green vehicles, according to early reports on the agreement.This proposed investment comes as Kenya continues to build its electric mobility sector, where the country launched the National Electric Mobility Policy in February 2026, with the government targeting increased investment in EV manufacturing, assembly, and charging infrastructure.At the launch of the policy, the Ministry of Roads and Transport said Kenya has registered 39,324 electric vehicles cumulatively by 2025, up from 1,378 in 2022.The government also introduced tax incentives, including zero-rating VAT on electric buses, bicycles, motorcycles, and lithium-ion batteries.Kenya's green mobility sector is growing, with the government having to allocate special green number plates for electric vehicles in the country in the move to promote green space and sustainability in the country.
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