Kenya is fast becoming one of Africa’s most attractive destinations for clean energy investment, with new figures from the Energy and Petroleum Regulatory Authority (EPRA) showing rapid growth in electric vehicles (EVs), green hydrogen, and autogas sectors.
According to EPRA’s 2024 Biannual Energy and Petroleum Statistics Report, the number of electric vehicles in the country rose by 41% in 2024, hitting 5,294 units, up from 3,753 in 2023. This figure includes motorcycles, tuk-tuks, private cars, and buses. The country also recorded a 480.65% rise in electricity used under the electric mobility tariff category, reaching 1.80GWh this year.
EPRA says several policy decisions are behind this progress. These include the reduction of excise duty on EVs from 20% to 10%, VAT waivers for fully electric vehicles, and the introduction of a special e-mobility tariff in April 2023.
The report points to growing investor interest in related infrastructure. Charging stations are now appearing in shopping malls, petrol stations, and office complexes in Nairobi. Electric motorcycle assembly plants are also being established across the country.
The report adds that global climate goals, such as the COP26 commitment to shift to zero-emission vehicles, are making Kenya more attractive to cautious investors. Opportunities exist in setting up EV charging infrastructure, leasing services for electric motorbikes (boda-bodas), and battery recycling ventures.
In the green hydrogen sector, Kenya is positioning itself as a key player on the continent. The government launched its Green Hydrogen Strategy in 2023, offering a $1 billion investment roadmap. With 90% of Kenya’s electricity coming from renewable sources like geothermal, wind and solar, hydrogen can be produced at a competitive cost of $2 per kilogram.
Projects like the 300 MW Olkaria geothermal plant—built to be hydrogen-ready—and the planned green ammonia exports from Lamu are set to generate jobs and drive industrial innovation. Kenya’s Hydrogen Guidelines, published in May 2024, also lay out clear rules for land use, water sourcing, and project approval, reducing the risk for early-stage investors.
The strategy aims to attract at least $1 billion in direct investment by 2030, create 25,000 jobs by 2032, avoid 250,000 tonnes of carbon emissions each year by 2030, and start producing green shipping fuels by that same year.
Meanwhile, Kenya’s autogas industry, though less publicised, is quietly expanding. In 2024, EPRA issued 10 new permits for the construction of autogas stations. Director-General Daniel Kiptoo noted that demand for liquefied petroleum gas (LPG) as a cleaner alternative to petrol is gaining traction.
The autogas market presents investment options in manufacturing conversion kits, building inland LPG depots, and forming maritime supply partnerships through the Lamu port.
