As nations across the world pivot from fossil fuel-based transport to cleaner, electrified mobility, the conversation is no longer merely about climate change but also about economic sovereignty, industrial evolution, and energy security. Electric car sales topped 17 million globally in 2024, rising by more than 25%. The additional 3.5 million cars sold in 2024 compared with 2023 exceeded the total electric car sales recorded in the whole of 2020. China maintained its lead among major markets, with electric car sales surpassing 11 million, more than were sold worldwide just two years earlier.
Global sales growth, however, was slightly tempered by stagnating demand in Europe, as subsidies were phased out or reduced in several key markets and as EU CO₂ targets for cars remained unchanged between 2023 and 2024. Against this backdrop, African economies are increasingly aligning their policy frameworks to avoid being left behind. The continent’s transport sector, responsible for about 14% of greenhouse gas emissions, is being drawn into the zero-emission trajectory through tax reforms, import duty restructuring, and local assembly programmes.
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Within this global frame, two countries stand out for their emerging e-mobility agendas: Kenya and Nigeria. Each has announced tax breaks, import duty cuts and, critically, local-assembly plans for electric vehicles and electric two-wheelers. The twin goals are: reducing fossil-fuel imports and boosting domestic industrial capacity. What follows is a comparative deep-dive into how these two nations are shaping their e-mobility future, the incentives, the industrial logic, the challenges and the broader regional significance.
Kenya’s strides in promoting EVs are built atop a foundation of favourable policy and renewable-energy advantage. The country already generates large amount of its electricity from renewable sources, which gives any switch to EVs an inherently greener character.
As of 2025, Kenya offers a lower 10% import duty, 0% excise duty, and 0% VAT on fully electric vehicles. This progressive structure significantly reduces the cost of importing EVs compared to internal-combustion vehicles, which face higher import and excise taxes. The result: in mid-2025 Kenya reported over 9,000 registered EVs (up from 2,694 in 2023).
Further incentives include reduced registration fees for EVs and supportive measures for the development of public charging infrastructure. In one ambitious twist, the Kenyan government announced that for the first 100,000 electric cars assembled locally it will eliminate all taxes, signalling the importance of assembly-scale and localisation of manufacturing.
By offering low import duties and favourable taxation, Kenya is positioning itself not only as a market for EV imports, but as a regional manufacturing hub. Lower tariffs make imported EVs more affordable, and combined with ambitions for local assembly can attract investment into production, battery value-chains and charging infrastructure.
The local economy stands to gain on multiple fronts: jobs in vehicle assembly, a diversification away from fossil-fuel dependency, and a strengthened position in sub-Saharan African automotive value-chains. Kenya’s regulatory clarity and incentive framework may make it a template for e-mobility in the region.
Despite the positive direction, challenges persist. While import duty is low, VAT and other levies are likely still apply; charging infrastructure remains nascent and home-ownership of EVs remains limited by cost. Moreover, the Finance Bill 2025 proposes reclassification of some components (e-bikes, e-buses) from zero-rated to VAT-exempt status, which could reduce input-cost advantages. The ambition is clear, yet execution will determine whether Kenya becomes more than a sympathetic policy zone.
Nigeria’s Industrial Leap
Nigeria, Africa’s largest economy by GDP and population, faces the dual pressures of reducing fossil-fuel import bills and fostering local industrialisation. The government’s e-mobility strategy is bold: combine fiscal incentives with manufacture mandates to convert the market into a production base.
In October 2024, Nigeria’s federal government announced a VAT-exemption for electric-vehicles (EVs), compressed natural-gas vehicles and their parts under the Value Added Tax (Modification) Order, 2024. The exemption covers EVs, semi-knocked-down (SKD) units and charging infrastructure, lowering the upfront cost burden. Separate policy documentation records a 10-year tax relief package for domestic EV manufacturers and component makers under the revised automotive policy.
The country also targets local assembly: a key policy goal is that by 2032, 30 % of all vehicles sold in Nigeria must be locally-produced EVs. Additional import duty relief for EVs is under the National EV Action Plan (tax breaks, reduced import duties etc.).
Individual states are also participating: for example, in December 2024 the Borno State government announced a roll-out of 650 e-vehicles (50 electric taxis, 100 cars and 500 tricycles) as part of its 2025 budget.
By manufacturing locally, Nigeria aims to reduce currency exposure to imported vehicles, preserve foreign exchange, create jobs and develop skills in e-mobility systems. The 10-year tax relief is a signal to foreign OEMs and domestic assemblers that Nigeria is open for industrial greenfield EV investments.
Policy implementation and market realities
However, implementation has its complexities. While policy documents declare reduced import duties for EVs, in practice Nigeria’s customs tariff book lacks a clearly defined EV-specific duty rate under HS code 8703.80. This creates regulatory ambiguity and potential cost inflation for importers. Despite this, sources suggest import duties on EVs range between 10 – 20 % with VAT and import adjustment taxes being waived.
Why This Matters for Africa
The twin experiments of Kenya and Nigeria provide a powerful lens into Africa’s e-mobility future. First, they show that targeted fiscal policy can reduce the import-cost barrier for EVs, a critical step in markets where affordability remains a major constraint. According to one recent assessment, Africa’s EV sales nearly doubled in 2024 to around 11,000 units, still small in absolute terms, but a clear acceleration.
Second, they demonstrate that the race is not only about reducing emissions, but also about industrial strategy. For African states, EVs represent an opportunity to leap-frog into high-value manufacturing, assemble components, develop charging-infrastructure services and capture more of the mobility value-chain domestically.
Third, the difference between Kenya and Nigeria illustrates two models: one (Kenya) emphasising import-duty relief and charging-infrastructure to accelerate consumer adoption; the other (Nigeria) emphasising industrial mandates, localisation requirements and a long-term domestic production vision. Both paths are valid and reflect differing national priorities.
Finally, success will depend on execution. The most forward-looking incentives will falter without reliable electricity supply, public-charging networks, consumer financing, local skilled labour, supply-chain linkages and regulatory clarity. Africa’s challenge is thus holistic: tax breaks alone will not suffice.
Outlook: Crossing the Rubicon
As Kenya and Nigeria launch their next phases of e-mobility incentives, several outcomes are foreseeable. In the medium term, we may see an uptick in EV registrations in Kenya to meet its target of 5 % of new registrations by 2025. In Nigeria, if manufacturer-incentives and assembly mandates gain traction, the nation could become a regional hub for EV assembly, potentially disrupting imports and reducing dependence on fossil fuels.
For investors, component suppliers, and mobility-service providers, Africa is becoming a frontier not only for market entry but for manufacturing entry. For policy-makers, the imperative will be to ensure the delivery of the enabling ecosystem. For citizens and communities, the promise is cleaner urban air, reduced fuel bills and participation in next-generation mobility.
In short, Africa’s e-mobility sweep is underway, and Kenya and Nigeria are leading the charge. The next decade will reveal whether they convert ambition into industrial-scale reality.
