• Kenya has inaugurated an electric vehicle (EV) assembly plant at Olkaria with an annual capacity of 50,000 units.
• The project aims to generate over 13,000 jobs (direct and indirect) and leverages geothermal energy access.
• The Kenyan government targets to raise EVs to 5 % of annual vehicle registrations and cut emissions 32 % by 2030.

The Kenya Electricity Generating Company (KenGen) opened an electric vehicle (EV) assembly facility in Nakuru County, built inside the Olkaria Green Energy Park, capable of producing 50,000 units per year. The plant ties into a broader national push for energy transition and sustainable mobility.

Kenya rolls out multiple strategic frameworks to support this shift. These include the draft National E-Mobility Policy of March 2024, the updated Kenya National Automotive Policy 2025, and the Vision 2030 roadmap. The government sets a target of reducing carbon emissions by 32 % by 2030, reaching net zero by 2050, creating skilled jobs, cutting fuel import dependence, and having EVs represent 5 % of annual new vehicle registrations by end-2025.

The Olkaria plant complements a local ecosystem already producing electric buses and motorcycles. Dubai’s Aquilastor Corporate Investment backs the project. It should deliver over 13,000 jobs (direct and indirect) and benefit from privileged access to geothermal power supplied by KenGen.

Local officials stress that Olkaria’s status as a special economic zone (SEZ) underpins its appeal, offering competitive tax regimes and reliable infrastructure. “The ZES of Olkaria combines competitive energy, supply security and tailored incentives,” said Hon. Kihagi, Nakuru County representative.

Kenya positions itself as a pioneer in East Africa’s EV space. While South Africa and Morocco develop green auto value chains in the south and north of the continent, Nairobi bets on geothermal advantage to become a regional EV hub.

Nonetheless, Kenya faces hurdles. Local consumer incomes remain low, charging infrastructure is sparse, and fiscal incentives remain essential to incentivize uptake. Moreover, the capacity to absorb 50,000 EVs annually in regional markets remains uncertain.

This article was initially published in French by Henoc Dossa

Adapted in English by Ange Jason Quenum