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Kenya signs US$3bn plan to build electric vehicles locally
The government has signed a memorandum with Endelevu Enterprise Corporation, partnered with Geely, for plants to assemble 50,000 electric cars and 100,000 two-wheelers a year.
Industry50,000
four-wheel electric vehicles a year planned for the proposed assembly plant
President William Ruto presided over the signing of a memorandum of understanding at State House, Nairobi, on 6 October between the government and Endelevu Enterprise Corporation, whose partner is the Chinese carmaker Geely. The proposed project is valued at US$3 billion, about Sh390 billion.
It includes an assembly plant for 50,000 four-wheel vehicles a year, a second plant for up to 100,000 two-wheelers and light vehicles a year, 1,000 solar-powered charging hubs, and a digital platform to manage up to 100,000 electric vehicles. The government says it would create about 2,000 direct jobs and more than 20,000 indirect ones.
Still a first step
"A memorandum is a framework. It is not the finish line," the President said, adding that the next steps are binding agreements, groundbreaking and then production. The sites, the financing and a timetable have not been published. The Ministry of Investment, Trade and Industry, through KenInvest, was told to help the investor with approvals, land and infrastructure.
The deal follows the national electric mobility policy launched in February, under which the first 100,000 imported electric vehicles come in duty-free, and a National Automotive Bill that is before Parliament.
Why it matters
- A vehicle plant of this size would need local suppliers of parts, packaging, logistics and services, which is where most of the promised indirect jobs would come from.
- Vehicles assembled in Kenya that meet East African Community rules of origin could be sold across the region.
- Until binding agreements, sites and dates are announced, it remains a plan.
