Kenya is set to receive a proposed KSh390 billion (about US$3 billion) investment aimed at building a major electric vehicle manufacturing and assembly industry in the country.
The project, announced after a memorandum of understanding between the Kenyan government and Endelevu Enterprise Corporation, in partnership with China’s Geely Auto Group, could make Kenya an important electric-mobility manufacturing hub in East Africa.
The proposed investment will include two manufacturing facilities. One is expected to have the capacity to produce 50,000 electric four-wheel vehicles every year, while another could produce up to 100,000 electric motorcycles and other light-mobility vehicles annually. Together, the facilities could have a potential annual capacity of 150,000 vehicles.
The project will also include plans for 1,000 solar-powered charging hubs and a digital platform capable of supporting up to 100,000 electric vehicles.
Kenya’s government expects the investment to create around 2,000 direct jobs, more than 20,000 indirect opportunities, and as many as 80,000 additional opportunities in areas such as fleet management, operations and related services.
President William Ruto said the project is part of Kenya’s wider plan to reduce dependence on imported fuel and vehicles while encouraging local manufacturing. The government also hopes vehicles manufactured in Kenya can eventually serve markets across East Africa.
Kenya has been increasingly promoting electric vehicles as part of its transition towards cleaner transportation. The country’s registered electric-vehicle fleet has grown significantly in recent years, while the government has introduced policies and incentives designed to encourage local production and adoption.
However, the KSh390 billion is currently a proposed investment, not money that has already been fully invested. Details such as the final financing arrangements, factory locations, construction timetable and production start date are yet to be announced.
If completed, the project could strengthen Kenya’s automotive industry, create thousands of jobs and position the country as a major electric-vehicle manufacturing centre in Africa.
