MojaEV Kenya Ltd., a Nairobi-based electric vehicle distributor that imports fully built Chinese units, will begin local assembly from August with a plan to export to several African Markets.
The vehicles will initially be assembled at Mombasa-based Associated Vehicle Assemblers Ltd. before MojaEV builds its own factory that will put together battery and solar components, according to Erick Lumallas, an aide to MojaEV’s chief executive officer.
“We have contracts in place,” Lumallas said. “All the original equipment manufacturers are in agreement with us, they will give us the expertise we need to build the factory.”
MojaEV is setting up the assembly plant to avoid a bevy of taxes for imports into Kenya. The factory will produce as many as 300 vehicles monthly and sales are projected at 1,500 units annually, Lumallas said.
Taxes remain the biggest challenges for the electric vehicle industry in Kenya, Lumallas said. Charges include a 35% import duty, 20% excise tax, 1.5% for a railway development levy, a fuel levy of 2.5% and value added tax at 16%.
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That’s in addition to port charges, handling fees, demurrage and storage, and container freight station costs, he said. In comparison, locally assembled electric vehicles pay VAT only, he said.
Producing locally will help the company sell entry-level vehicles at prices lower than the current 2.5 million shillings and 7.5 million shillings for high-end units.
MojaEV, launched by Chinese investors last year, is already exporting to Tanzania, and plans to expand distribution to Rwanda, Uganda, Mauritius, Ghana, Nigerian, Botswana and Zambia. Its portfolio includes SUV brands Skyworth and Neta, the sedan category has GSE and Wuling, double cabin pick up Riddara, and Foton buses and trucks.
To address the challenges of limited charging points in Kenya, each vehicle distributed by MojaEV comes with an on-board charger that can be plugged into any wall socket and a stationary one to be installed at buildings or parking spaces.
As 70% of Kenyans use public transport, MojaEV is in talks with some of the companies that dominate the sector to convert fleets into electric buses, he said.
This article was generated from an automated news agency feed without modifications to text.
