Kenya plans to extend the standard 16% valued added tax (VAT) to electric vehicles (EVs), lithium-ion batteries, and electric bicycles, reversing tax breaks that supported the country’s electric mobility industry.
The proposal, contained in the Finance Bill 2026, could increase the cost of imported batteries, electric buses, and related components in a market where startups like BasiGo, Roam, and Ampersand are expanding operations across public transport and battery-swapping infrastructure.
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