Kenya Set to Benefit from AfDB’s KES 130m Electric Vehicle Fund

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Kenya is set to receive part of the USD 1 million fund from the African Development Bank (AfDB) under its Green Mobility for Africa (GMFA) project. The project is a financing program that aims to speed up and widen private sector investment in sustainable transportation options in Africa. It does this through the provision of investment capital and technical support.

The GMFA is in line with the SEFA’s Strategic Framework, specifically, a pillar focused on “Energy Efficiency.”

Reportedly, the program will create conditions for private sector investments in e-mobility while promoting a transition from diesel-powered transportation options to cleaner and more efficient alternatives that lower greenhouse gas (GHG) emissions.

It will also help African countries in expanding their investments in this growing sector and open the door for the Bank’s direct investments. The SEFA financing will only cover the electric vehicle components, while other co-financiers will support other technologies.

The $1 million fund will be allocated toward three areas. First, it will support the establishment of favourable conditions for electric vehicles (EVs) and development of a portfolio of projects. Second, it will help design an EV business model and guidelines and provide technical support for project preparation. Finally, it will manage SEFA financing for the EV components of the project.

The Green Mobility Facility for Africa will benefit two groups. Firstly, it will support seven countries (Kenya, Morocco, Nigeria, Rwanda, Senegal, Sierra Leone, and South Africa) by providing institutional and regulatory framework assistance. Secondly, it will aid project sponsors in the host countries with feasible green mobility projects that will be evaluated by the Bank.

“By facilitating the emergence of a green mobility sector in Africa, the project will contribute to green and inclusive economic growth in the countries where green mobility projects will be deployed,” reads a statement from AfDB.

Kenya is currently running a number of electric vehicle projects, most of which seem to target urban mass transit. BasiGo and Roam have both plugged themselves into the Nairobi Matatu business in partnership with known Saccos, but their presence is small with under 50 buses or so plying different routes in the city.

For the first time, Kenya Power will introduce an electric mobility tariff, ranging from 200 to 15,000 kilowatts/hour at a rate of KES 17 per kWh. This pricing plan will be included in the new tariffs set to be published in April 2023 and will be in effect for two years. This announcement provides assurance to e-mobility investors regarding the pricing for electricity consumption.