Kenya Promotes Electric Vehicles in Taxi Industry to Cut Emissions and Boost Driver Revenue

Kenya Promotes Electric Vehicles in Taxi Industry to Cut Emissions and Boost Driver Revenue
Image credit: Xinhuanet news 

Kenya is advocating for the taxi industry to switch to electric vehicles (EVs) to reduce carbon emissions and increase revenue for drivers.

Paul Mwai, a 33-year-old taxi driver, uses a digital app to manage his customers. Recently, he received an order to transport a client to a mall in Nairobi, 12 kilometers from his location. By noon, Mwai had already transported over ten passengers across the city and its satellite towns.

Mwai's decision to switch to a brand-new Neta V, a Chinese EV brand, was facilitated by a partnership between Moja EV Kenya and a local bank, which provided loans for the purchase. The Neta V cost him 4 million Kenyan shillings (about 31,000 USD).

Mwai noted several benefits of using an EV, including increased daily income ranging between 6,000 and 7,000 shillings (about 46.5 to 54.2 USD). His expenses include 31 USD for loan repayment and 6.2 USD for electric charging. In comparison, his earnings with a petrol-powered taxi averaged 34.8 USD daily, with expenses of 9.3 USD for loan repayment and 19.38 USD for fuel.

Image credit: Neta V

The lower maintenance costs and cheaper charging compared to fuel have significantly boosted his earnings. As of December 2023, Kenya had 3,753 EVs, making up 1.62% of registered vehicles.

Wang Aiping, CEO of Moja EV Kenya, highlighted that most Kenyan taxi drivers use imported second-hand fossil fuel vehicles, resulting in high maintenance and operational costs. In contrast, the Neta V offers a smooth, safe, and comfortable ride with a range of 380 kilometers on a full charge, and it includes a complimentary home AC charging station and a portable charger.

Moja EV Kenya has partnered with seven taxi associations to promote EV adoption, boosting business earnings. The Ministry of Investments, Trade, and Industry supports this switch to reduce transport sector emissions.

Stephen Musembe, another taxi driver, transitioned to an EV after three years in the business. He gained more customers due to the quieter ride.

Alok Srivastava, general manager of the taxi-hailing app Yego, stated that drivers using EVs on his platform earn more than those using fossil fuel cars, offering a premium service that translates to higher revenue.