Kenya to Charge VAT On Electric Vehicles in Tax Shift

Kenya plans to apply the 16% value-added tax to electric vehicles, lithium-ion batteries and electric bicycles, reversing tax breaks that helped support the country’s electric mobility sector.

The proposal is part of the Finance Bill 2026 and could raise costs for companies importing electric buses, batteries and charging equipment. It comes as startups including BasiGo, Roam and Ampersand expand public transport, battery swapping and charging networks in Kenya and across East Africa.

The sector…