Chinese automotive company Chery has announced a Sh2.62 billion investment in Kenya aimed at expanding the production of electric vehicles (EVs). The agreement, finalized on Saturday, involves a partnership with the Kenyan firm Afrigreen Automobile to establish a local assembly plant for EVs.
Abubakar Hassan Abubakar, Principal Secretary of the Ministry of Investments, Trade, and Industry, highlighted that this collaboration is set to enhance the availability and affordability of EVs in Kenya. “The new assembly plant will contribute to a greener transport sector. Currently, there are about 4,000 electric vehicles among 1.7 million cars on Kenyan roads,” Hassan noted.
The event featured a high-profile delegation from Anhui Province in East China, along with senior Kenyan officials. The $20 million investment is projected to generate approximately 3,000 direct and indirect jobs.
Hai Wei, Director of Chery International for the Central Africa Region, emphasized Kenya’s selection as the site for the assembly plant due to its skilled workforce and status as an economic hub in Africa. He also mentioned Chery’s 26 years of innovative research to tailor vehicles for the local market.
Shan Xiangqian, Vice-Governor of Anhui Province, remarked that this partnership would elevate Kenya’s reputation as a center for e-mobility, reflecting the strong bilateral relations between Kenya and China.
Nishant Mishra, Global Head of Future Mobility at Afrigreen Automobile, projected that the plant would be operational within a month, with a production capacity of 5,000 to 6,000 EVs annually. The initial production will focus on the Omoda sport utility model, suitable for diverse terrains, with plans to introduce pickups next year.
According to the Skyquest Electric Car Market Insight Report for 2023, the global electric car market grew from $341.34 billion (Sh44.63 trillion) in 2022 to $388 billion (Sh50.54 trillion) in 2023. Data from the Energy and Petroleum Regulatory Authority (EPRA) shows that 2,694 electric vehicles were registered in Kenya in 2023, a significant increase from 475 units the previous year. By the end of 2023, the total number of registered EVs in Kenya reached 3,753. This surge is attributed to the introduction of the e-mobility tariff, a reduction in excise duty on EVs from 20 percent to 10 percent, and VAT exemption for fully electric vehicles.
