Kenya has entered into a memorandum of understanding (MOU) paving the way for a proposed Ksh390 billion investment in electric vehicle manufacturing and green mobility.
The agreement, signed on Tuesday, October 6, 2026, will cover electric vehicle assembly, charging infrastructure and the development of supporting value chains if implemented as proposed.
President William Ruto said the MOU establishes a framework for building an integrated green mobility ecosystem, describing the proposed investment as one of the largest commitments to electric mobility in the region.
Under the plan, one manufacturing plant is expected to have the capacity to assemble 50,000 four-wheel vehicles annually. A second facility would produce up to 100,000 two-wheelers and light mobility vehicles each year.
The project is projected to generate about 2,000 direct jobs and more than 20,000 indirect opportunities through suppliers, logistics firms and service providers.
It could also create up to 80,000 additional opportunities in fleet management, expanding employment prospects beyond the manufacturing facilities.
Ruto said the investment would support Kenya's efforts to reduce dependence on imported finished vehicles by expanding local assembly and increasing value addition within the country.
He further argued that local vehicle production would allow more economic value to remain in Kenya while creating opportunities for technicians, engineers, suppliers and other businesses operating within the automotive industry.
The proposed project also includes the development of 1,000 solar-powered charging hubs and a digital platform designed to manage up to 100,000 green vehicles, according to initial reports on the agreement.
The investment comes as Kenya accelerates efforts to establish itself as a regional hub for electric mobility.
In February 2026, the government launched the National Electric Mobility Policy, outlining measures aimed at attracting investment into electric vehicle manufacturing, assembly and charging infrastructure.
Data presented by the Ministry of Roads and Transport at the policy launch showed that Kenya had registered 39,324 electric vehicles cumulatively by 2025, a significant increase from 1,378 recorded in 2022.
The government has also introduced tax incentives to support the sector, including zero-rating VAT on electric buses, bicycles, motorcycles and lithium-ion batteries.
Kenya has additionally introduced special green number plates for electric vehicles as part of efforts to promote the adoption of cleaner transport and advance the country's sustainability agenda.
