Kenya Signs Proposed KSh389 Billion Electric Vehicle Investment Deal

NAIROBI, Kenya — President William Ruto on Tuesday witnessed the signing of a Memorandum of Understanding (MoU) between the Government of Kenya and Endelevu Enterprise Corporation for a proposed $3 billion (about KSh389 billion) investment in electric vehicle manufacturing and green mobility.

The agreement, signed at State House, Nairobi, is intended to establish an integrated electric mobility ecosystem covering vehicle manufacturing and assembly, charging infrastructure and related services. The proposed investment is expected to position Kenya as a manufacturing base for the wider East African and African markets.

Two Manufacturing Plants Planned

Under the proposed project, one assembly facility would have the capacity to produce 50,000 four-wheel vehicles annually, while a second plant would produce up to 100,000 two-wheelers and light-mobility vehicles each year.

The project also includes plans for 1,000 solar-powered charging hubs and a digital platform capable of supporting up to 100,000 green vehicles.

President Ruto said the investment was designed to shift Kenya from importing finished vehicles towards greater domestic production and value addition.

He said the project could create approximately 2,000 direct jobs and more than 20,000 indirect opportunities through suppliers, logistics companies and other service providers. A further 80,000 opportunities are projected in fleet management, operations and related services.

Government Links Project to Industrialisation

Ruto said the investment forms part of a broader government strategy to increase local manufacturing, create employment and retain more economic value within Kenya.

The President argued that Kenya needed to add value to products locally rather than relying heavily on imported finished goods.

He also linked the electric mobility investment to the country's wider industrialisation and energy-security agenda, saying Kenya could continue developing petroleum refining while simultaneously expanding electric transport.

According to Ruto, the two approaches can coexist as Kenya seeks to strengthen energy security while transitioning towards cleaner transport.

Focus on Regional and African Markets

The President said the ambition was not to manufacture electric vehicles solely for Kenya's domestic market.

He said Endelevu and its partner, Geely, were expected to develop manufacturing capacity capable of serving the East African and wider African markets.

Vehicles manufactured in Kenya that meet the East African Community Rules of Origin would be eligible to access the regional market, potentially expanding the commercial scope of the proposed investment.

Ruto said the project should also generate opportunities for Kenyan small and medium-sized enterprises through supply contracts, logistics, services and other parts of the automotive value chain.

Electric Mobility Policy Provides Framework

The agreement comes months after Kenya launched its National Electric Mobility Policy in February 2026.

The policy provides a framework for expanding electric mobility, encouraging investment in charging infrastructure, supporting local manufacturing and assembly, developing technical skills and strengthening the regulatory environment.

The Ministry of Roads and Transport has said the transition to electric mobility is also intended to reduce dependence on imported petroleum, improve energy security and support the growth of green jobs.

The government has introduced incentives for electric mobility, including zero-rating VAT on electric buses, electric bicycles, electric motorcycles and lithium-ion batteries, as well as a zero excise-duty rate on electric bicycles, electric motorcycles and lithium-ion batteries.

From MoU to Production

Ruto cautioned that the signing of the MoU was only the beginning of the proposed investment process.

He directed the Ministry of Investment, Trade and Industry, through Invest Kenya, to facilitate the project and coordinate with national and county institutions on approvals, land and infrastructure.

The President said the government would expect the partnership to move from the MoU to definitive agreements, construction and eventually production.

The proposed investment is therefore expected to be measured not only by the value announced, but by the extent to which the planned manufacturing facilities, charging infrastructure, jobs and technology-transfer programmes are ultimately implemented.

Government and Industry Officials Attend Signing

Investment and Trade Cabinet Secretary Lee Kinyanjui said the project was aligned with efforts to expand local automotive manufacturing and reduce Kenya's dependence on imported petroleum.

Endelevu Enterprise Corporation Chairman Susong Tong described the agreement as another milestone for Kenya's automotive industry.

National Assembly Speaker Moses Wetang'ula, Treasury Cabinet Secretary John Mbadi and Roads and Transport Cabinet Secretary Davis Chirchir were among the officials present during the signing ceremony.

If implemented as proposed, the project would represent a significant expansion of Kenya's electric mobility manufacturing ambitions and add new capacity across vehicle production, charging infrastructure, digital services and associated supply chains.