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Kenya’s EV Transition Risks Colliding With Its Own Tax Policy
Kenya has spent the last several years presenting itself as one of Africa’s most promising electric mobility markets. Policymakers have championed clean transport, startups have poured investment into electric motorcycles and buses, and renewable energy advocates have framed the country as uniquely positioned to lead the continent’s green transition.
Now, a proposed tax change threatens to complicate that momentum.
The Finance Bill 2026 includes plans to shift electric buses, electric bicycles, lithium-ion batteries, and solar batteries from zero-rated VAT status to VAT-exempt status. To most consumers, the distinction sounds technical, even insignificant. In reality, it could reshape pricing across Kenya’s emerging clean energy economy.
The issue lies in how VAT works behind the scenes.
Under zero-rated status, companies can reclaim VAT paid on production inputs such as imported parts, manufacturing equipment, logistics, and assembly services. That mechanism reduces operating costs and helps keep prices lower for consumers. VAT exemption removes that ability entirely. Businesses still pay VAT throughout the supply chain, but the tax becomes unrecoverable and is ultimately folded into the final retail price.
That hidden cost matters enormously in sectors where affordability determines adoption.
Kenya’s electric mobility ecosystem is still young. Most consumers are not choosing EVs because they are fashionable or environmentally symbolic; they are choosing them because they promise lower operating costs over time. Boda boda riders switching to electric motorcycles care about fuel savings. Public transport operators evaluating electric buses care about maintenance costs and long-term profitability. Small price increases can alter those calculations quickly.
The proposed VAT shift risks slowing adoption precisely where Kenya has seen the strongest early traction.
According to the International Energy Agency, affordability remains one of the most important drivers of EV adoption globally, particularly in developing markets where consumers are highly price-sensitive. Tax structures, subsidies, and manufacturing incentives have played central roles in accelerating electric mobility adoption in countries ranging from China to Norway.
Kenya, however, may be moving in the opposite direction at a delicate moment.
Earlier this year, the government launched a national electric mobility policy designed to encourage local EV manufacturing, reduce transport emissions, and position Kenya as a regional clean technology hub. The strategy emphasized incentives and industrial support as necessary tools for scaling adoption.
The Finance Bill introduces a contradictory signal.
Investors and manufacturers pay close attention to policy consistency, especially in emerging sectors where margins are already thin. If businesses perceive that tax policy can suddenly increase operational costs, expansion plans become harder to justify. For manufacturers considering local battery assembly or EV production facilities, unrecoverable VAT adds another layer of expense in a market still fighting for competitiveness.
This matters beyond transport alone.
Lithium-ion batteries sit at the center of Kenya’s broader renewable energy ecosystem. Solar home systems, off-grid electrification projects, backup storage solutions, and small commercial energy setups all rely heavily on battery technology. Raising effective battery costs does not only affect urban EV startups; it also affects rural households and small businesses that depend on solar energy where grid reliability remains inconsistent.
That creates a larger economic tension inside Kenya’s green development strategy.
The country has built much of its international climate reputation around renewable energy leadership. Kenya already generates most of its electricity from renewable sources, particularly geothermal power, according to the World Bank’s energy data. Electrifying transport and expanding battery storage logically extend that advantage.
But clean energy transitions are not driven by declarations alone. They depend on economics.
Consumers adopt new technologies when the financial case becomes practical. That has been true for electric vehicles worldwide. China aggressively subsidized EV manufacturing and battery production for years before the market reached scale. The United States and European Union continue offering tax credits and industrial incentives to accelerate domestic clean energy industries. Even wealthier economies have found that green transitions rarely happen through market forces alone.
Kenya’s situation is even more price-sensitive.
For many boda boda riders, transport operators, and small businesses, financing remains limited and upfront costs remain decisive. Any increase in EV or battery prices could slow adoption curves that are only beginning to build momentum.
The government’s revenue pressures are understandable. Kenya faces debt obligations, fiscal constraints, and rising demands for public financing. Expanding the tax base has become a recurring policy objective. But there is also a strategic question involved: should emerging industries be treated primarily as short-term revenue opportunities or long-term economic investments?
That distinction could shape whether Kenya becomes an importer of green technology or a regional production hub.
There is still room for Parliament to reconcile the contradiction before the Finance Bill becomes law. Retaining zero-rated VAT treatment for EVs and energy storage products would align tax policy more closely with the country’s industrial ambitions and climate commitments.
More importantly, it would recognize a reality that governments sometimes overlook during tax debates: in fast-moving industries, policy signals can matter almost as much as policy costs.
Kenya has already positioned itself as one of Africa’s most ambitious clean mobility markets. The question now is whether its fiscal policy will reinforce that ambition or quietly undermine it.
Dear Family and Friends,
We wish to express our deepest and most sincere gratitude for your overwhelming support throughout this difficult journey of laying to rest our beloved Njau Waira.
Thank you for your financial and material contributions, prayers, calls, messages, and, most importantly, your presence during the funeral arrangements, the wake, the memorial and the finally the burial. Your generosity and commitment made it possible for us to meet our target and give Njau the befitting send-off he deserved.
We are truly humbled and grateful for standing with the family every step of the way.
Your love,❤️ support, kindness and presence will forever be remembered.
May God bless you all abundantly and meet you at the point of need, an ever present help in time of trouble. 🙏🏼🙏🏼🙏🏼🙏🏼🙏🏼
From Waira Family.
Diaspora
U.S. Delays 2027 Green Card Lottery Registration as New Rules Add Costs and Passport Requirement
U.S. Delays 2027 Green Card Lottery Registration as New Rules Add Costs and Passport Requirement
WASHINGTON D.C. — Prospective immigrants from Kenya and other eligible African countries are facing an uncertain wait for the next U.S. Diversity Visa lottery after the Department of State delayed the opening of the 2027 registration period and introduced new requirements for applicants.
The State Department has not yet announced the opening or closing dates for DV-2027 registration. It said in November 2025 that it was making changes to the entry process and would announce the registration date “as soon as practicable.” The department also said the delay would not change the visa application period for people selected in the program, which is scheduled to run from October 1, 2026, through September 30, 2027.
State Department: Changes to the DV-2027 Entry Period
That means reports that the DV-2027 registration window has already been shortened should be treated with caution. No official registration duration has been published by the State Department as of September 29, 2026.
The delay comes as the department implements two significant changes: a $1 registration fee and a new requirement that most applicants provide information from a valid, unexpired passport and upload a scan of the passport’s biographical and signature page.
New $1 fee for lottery registration
A State Department final rule published in September 2025 established a $1 fee for registering for the Diversity Visa lottery. The department said the charge is intended to shift some of the costs of operating the lottery—including maintaining the electronic entry system, storing data, conducting the randomized selection process and performing security reviews—to people entering the lottery.
Federal Register: Diversity Visa Program Fee
The fee is separate from the visa application fee paid later by people who are selected and proceed with the immigration process.
The department’s subsequent Diversity Visa rule makes clear that the $1 fee will be collected when an entrant submits the lottery registration. No waiver is provided for the registration fee.
Federal Register: DV-2027 Passport Requirement and Entry Changes
Applicants should therefore be cautious about websites or agents claiming to offer an official DV-2027 registration before the State Department announces the registration period. The department’s official Diversity Visa entry instructions state that entries must be submitted electronically during the designated period and that there is only one permitted entry per person.
Passport requirement creates a new hurdle
The more consequential change for many prospective applicants is the passport requirement.
Under a final rule implementing changes for DV-2027, applicants generally must provide information from a valid, unexpired passport and upload a scan of its biographical and signature page when registering. The State Department said the requirement is intended to combat fraudulent and duplicate entries and allow earlier identity verification.
Federal Register: DV-2027 Passport Requirement and Entry Changes
The department acknowledged that obtaining a passport can present financial and logistical difficulties, particularly in countries where passport processing is slow or services are difficult to access.
Its regulatory analysis estimated that obtaining and supplying the passport information would add time and costs for applicants. The department estimated the average passport cost across eligible countries at $74.43, while also noting that actual costs and additional expenses vary by country.
The rule contains limited exemptions, including certain stateless applicants, some nationals of Communist-controlled countries who cannot obtain passports from their governments, and people covered by specified government-approved waivers. Applicants seeking an exemption must provide supporting evidence.
The State Department has said the passport rule will apply globally rather than specifically targeting African applicants. It nevertheless acknowledged that people without passports could be deterred from entering the program.
Kenya remains an eligible country
Kenyan-born applicants have been among the beneficiaries of the Diversity Visa program in recent years.
Kenya was listed among the African countries eligible for DV-2026, while Nigeria was among the countries excluded from that year’s program because of the statutory high-admission formula.
State Department: DV-2026 Instructions
The State Department selected 3,949 Kenyan entrants for DV-2026. The figure includes selected entrants and their eligible derivatives and does not mean that all of those people ultimately received visas.
State Department: DV-2026 Selected Entrants
Other African countries also recorded substantial numbers of DV-2026 selectees, including Ethiopia, Egypt, Cameroon, Morocco, Sudan, the Democratic Republic of Congo and Ghana.
Eligibility for DV-2027, however, must be confirmed against the official instructions when they are issued. A country’s eligibility can change from one program year to another under the statutory formula.
What applicants should expect
For now, the most important fact for prospective DV-2027 applicants is that there is no confirmed registration deadline to work toward.
The State Department has said it will publish the registration dates and the date on which DV-2027 selection results will become available through the Electronic Diversity Visa system.
State Department: Changes to the DV-2027 Entry Period
Once registration opens, applicants will have to comply with the new requirements, including the $1 payment and, in most cases, submission of valid passport information and a passport scan.
The official State Department DV entry guidance remains the appropriate source for registration instructions. The department says the registration system does not become active until the officially specified date and warns applicants to retain their confirmation number after submitting an entry.
The Federal Register rule on passport requirements provides the legal details of the new DV-2027 entry requirements, while the State Department’s DV-2027 announcement is the authoritative source for the delayed registration schedule.
A separate issue for current DV applicants
The DV-2027 delay is occurring alongside continuing uncertainty for people selected in the previous lottery.
In August 2026, the State Department announced that it was again pausing issuance of Diversity Visas while reviewing screening and vetting procedures. The department said applicants could continue submitting applications and attending interviews, but that no Diversity Visas would be issued while the pause was in effect.
State Department: Diversity Visa Issuance Guidance
That development concerns DV-2026 selectees, rather than people waiting to register for DV-2027, and should not be conflated with the delayed registration schedule.
For prospective applicants in Kenya and elsewhere in Africa, the immediate task is therefore preparation rather than rushing to meet an unannounced deadline. The registration dates, eligible-country list and complete DV-2027 instructions must come from the State Department before applicants can know the precise requirements and timeframe.
KIRINYAGA, Kenya — Kirinyaga Senator James Kamau Murango has denied any involvement in a viral controversy surrounding women’s underwear bearing his name and the branding of the National Government Affirmative Action Fund (NGAAF).
The controversy gained momentum this week after photographs and videos of the items circulated widely on social media, with some reports linking the merchandise to Murango’s political activities.
Murango has, however, rejected the claims, saying he neither authorised nor participated in the production, purchase or distribution of the items.
According to The Star, the senator’s lawyers, Sakimpa & Partners Advocates, issued a demand for corrections and retractions from media outlets that linked him to the merchandise.
The lawyers said Murango did not print, procure, purchase, supply or distribute the underwear and had not authorised the use of his name or NGAAF branding.
The legal response followed the circulation of videos and photographs that sparked intense discussion online and in Kirinyaga.
Njeri Maina Also Distances Herself
Kirinyaga Woman Representative Njeri Maina has also denied involvement in the distribution of the controversial items.
Maina has called for people allegedly using the names of political leaders without authorisation to be reported to the police.
In a report published on September 27, The Star reported that Maina urged residents to report individuals distributing items while claiming they originated from political leaders’ offices.
The controversy has also drawn attention to the use of NGAAF branding. The fund is associated with the office of the Woman Representative, making the appearance of the branding on the merchandise another point of contention.
At this stage, public reports have not established who commissioned or distributed the underwear.
Controversy Comes Ahead of 2027
The dispute comes as political activity in Kirinyaga begins to intensify ahead of the 2027 General Election.
Murango is positioning himself for the Kirinyaga gubernatorial contest, with the political landscape in the county expected to become increasingly competitive following Governor Anne Waiguru’s decision not to seek another term.
The Star reported earlier this month that Waiguru’s planned exit has opened the field for politicians seeking to succeed her.
The underwear controversy has consequently generated additional political attention, particularly because Murango’s name appears on the merchandise.
However, the senator’s denial means that the circumstances surrounding the production and distribution of the items remain disputed.
For now, Murango maintains that he had no role in the campaign merchandise and has threatened further legal and regulatory action against publications that continue to associate him with the items.
The unfolding dispute is likely to remain a talking point in Kirinyaga as political campaigns and public mobilisation gather pace ahead of the 2027 elections.
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