Kenya Power intends to install electric vehicle charging stations in malls and on highways

Kenya Power intends to install electric vehicle charging stations in malls and on highways

Kenya Power #ticker: KPLC announced plans to gain a larger share of the electric vehicle market by building nationwide charging stations and lobbying for lower import taxes for the non-fuel-driven vehicles. The electricity distributor stated it would create a network of the public electric vehicle charging stations, addressing one of Kenya’s biggest barriers to electric vehicle adoption.

It’s also in discussions with the state about lowering taxes on the electric vehicles and charging station equipment in order to meet the state’s goal of having at least 5% of registered vehicles be non-petrol. In its bid to diversify from selling electricity to homes and businesses, the utility is eyeing electricity charging stations as a new revenue stream.

“We also plan to set up charging centers across the country, and we’ll use our existing workshops to offer after-sale services like mechanical support,” Kenya Power acting Chief Executive Officer Rosemary Oduor said at the company’s annual general meeting.

“As Kenya’s sole electricity off-taker, and with our goal of becoming the energy solutions preferred provider, the opportunity presented by the electric motorization is significant enough to be a business dial-mover.” The main concern for most people considering purchasing an electric vehicle is how to charge them.

Kenya Power plans to install electric vehicle charging stations along parking lots, major highways, and shopping malls, with its workshops serving as after-sale service centers. It joins KenGen (Kenya Electricity Generating Company) #ticker: KEGN in making an investment in an electric vehicle charging infrastructure. Kenya has joined a global push to advocate for electric cars and reduce the dependence on gasoline and diesel. Fuel products account for the majority of the country’s imports.

Although most African consumers will not be interested in electric cars due to their high price, analysts believe that increased production and favorable government policy will help bring prices down. “We’re working very closely with the government to implement legislation that will subsidize the cost of these vehicles, as well as associated infrastructure like storage and charging stations,” Ms. Oduor said. Kenya reduced the excise duty on electric vehicles from 20% to 10% in order to encourage their adoption.

Electric vehicle standards have also been adopted by the KEBS (Kenya Bureau of Standards). According to McKinsey, over 350 new electric car models will be available by 2025. Established players such as Tesla will face unprecedented competition as a result of this. Almost every traditional carmaker in the world is planning to release an electric vehicle. Even start-ups are getting in on the act. According to Reuters, approximately 250 start-ups in space had raised more than $20 billion (roughly Sh2 trillion) in the venture capital in 2019.

Broadening the project in Kenya will generate revenue for both KenGen and Kenya Power from automobile owners who will need to charge their cars, but this is highly dependent on the technology catching on locally.

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