High oil prices once again shake the fundamentals of oil trucks, Kenya exempts the first 100,000 imported electric vehicles from tariffs

Kenyan President William Ruto announced that Kenya will exempt the first batch of 100,000 imported electric vehicles from import duties. This tax reduction policy covers public service vehicles and private use vehicles...

Kenyan President William Ruto announced in a live speech at the Mombasa State Parliament Building that Kenya willexempt the first batch of 100,000 imported electric vehicles from import duties. The tax reduction policy covers public service vehicles and private use vehicles. The government hopes to accelerate the transition from fossil fuels to electric mobility and reduce Kenya's dependence on fluctuations in international oil prices.

"I announce that the first batch of 100,000 electric vehicles imported into Kenya, whether for public services or private use, will be exempt from tariffs," Ruto said. Against the backdrop of continued instability in the global fuel market, the Kenyan government views electric vehicles as the first step in reducing energy shocks.

First, import tariffs are exempted, and the goal is to reduce the price of electric vehicles first.

The core of this policy is that "the first 100,000 electric vehicles are imported duty-free." For a highly fuel-dependent market like Kenya, rising oil prices and supply fluctuations will directly affect public transportation, logistics and residential travel costs. The government hopes to reduce the tax burden on imports to allow more electric vehicles to enter the market, and first increase the scale.

However, for China's second-hand car exporters, one point needs to be paid special attention: what the report mentioned is an import tariff exemption, which does not mean that all taxes and fees will be cancelled. Whether value-added tax, consumption tax, registration fees, standard certification fees, etc. are also involved in actual customs clearance still needs to be subject to the implementation rules of the Kenyan tax and customs departments. In other words, this is a positive thing, but it cannot be simply understood as "zero-cost imports."

Second, Kenya not only wants to import, but also wants to manufacture local electric vehicles.

Ruto also revealed that the Kenyan government is working with private investors to promote the construction of electric vehicle manufacturing facilities locally, hoping to build Kenya into a regional clean energy travel center. This means that Kenya is not simply liberalizing imports, but is using imports to drive market education, supporting construction and local industrial layout.

In addition, Kenya's Ministry of Interior has ordered 3000 electric vehicles that will be used by security and administrative personnel. Government procurement is often the market vane. Once the public service system takes the lead in using electric vehicles, it will have a driving effect on the charging network, maintenance system and public acceptance.

Third, behind the electric vehicle policy is the energy security account.

Ruto emphasized that Kenya is accelerating investment in renewable energy, electric mobility, modern public transportation and energy security infrastructure to reduce the vulnerability of future generations to global fuel price fluctuations. At the same time, Kenya also plans to work with East African partner countries and the private sector to promote the commercialization of petroleum resources in Turkana and East Africa, and build regional refineries to reduce dependence on external supply chains.

This shows that Kenya's energy policy is "walking on two legs": on the one hand, developing local regional oil and gas resources and refining capabilities, and on the other hand, accelerating new energy transportation. For the automotive industry, electric vehicles have been included in the national energy security strategy, not just environmental protection projects.

written in the end

For China's used car export practitioners, Kenya's policy deserves close attention. Kenya is a right-hand rudder market and has long been mainly imported used cars and is highly price sensitive. If the import tariff exemption for electric vehicles is truly implemented, China's second-hand electric vehicles, quasi-new electric vehicles and commercial electric models with price advantages may usher in new opportunities. But at the same time, the Kenyan market will also pay more attention to battery health, battery life authenticity, charging adaptation, spare parts supply and after-sales maintenance capabilities. It is difficult to grow by just selling the car without solving the subsequent use problem.

Source:https://www.kbc.co.ke/president-ruto-first-10000-electric-vehicles-duty-free/

Source: Guangdong Good Car

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