East African countries, including Kenya, Tanzania, and Uganda, are actively driving electric vehicle (EV) adoption through their 2023/24 Finance Acts, positively impacting the regional EV market. Tanzania offers excise duty exemptions for electric four-wheelers (E4W) and e-buses. Uganda provides import duty exemptions for e-motorcycles, E4W, and hybrid cars. Kenya has zero-rated VAT for e-motorcycles, e-buses, e-bicycles, and lithium-ion batteries, in addition to excise duty exemptions for e-motorcycles and reduced duties for E4W and e-buses. These policies significantly reduce the purchase cost of electric passenger cars, making them more competitive than internal combustion engine (ICE) vehicles. Despite this progress, challenges persist, including the short-term nature of annual incentives, unclear regulations for EV spare parts, and inconsistent Harmonized System (HS) codes. Addressing these gaps is crucial for sustainable EV sector growth and investment in East Africa.
