Kenya’s charging companies cut prices amid stiff competition

From the newsletter

The cost of charging electric vehicles in Kenya at the main public stations has reduced in April compared to March amid stiff competition from new service providers. A survey done by Mobility Rising shows that the average cost of charging and swapping a fully charged battery went down from $0.95 per kWh in March to $0.75 in April, handing relief to EV owners.  

• The reduction in the cost of charging makes EV ownership more affordable, encouraging individuals and businesses, especially in a cost-sensitive country like Kenya, to switch from fossil fuel-powered vehicles to EVs. For commercial fleets, reduced costs mean greater operational savings, which increases the appeal of fleet electrification. 

• We surveyed six of the biggest charging station providers in the capital Nairobi and noted prices to charge an electric car and swap an electric motorcycle. We also collected data for both AC and DC charging to assess what motorists are paying for different charging speeds. 

More details

• During the one-month period, the cost of charging at Drivelectric charging stations reduced from $0.45 per kWh to $0.34 for both AC and DC charging. Drivelectric is one of Kenya’s largest charging station providers, with presence in multiple sites across Nairobi.

• ARC Ride, a Nairobi-based electric motorcycle company with a growing number of swapping stations, has also cut prices. The cost of swapping a battery at its stations has gone down to $1.9 compared to $2.05 in the previous month.

• Spiro, the continent’s leading electric motorcycle seller, also reduced its swapping prices, albeit by a smaller margin compared to its competitors. Spiro charges $2.2 to swap a depleted battery for a fully charged battery, a slight decline from $2.24 last month. 

• Kenya has made significant strides in establishing a special tariff for EV charging to encourage the adoption of electric mobility. In 2023, it introduced a special EV charging tariff, which is significantly lower than the standard tariffs for residential, commercial, and industrial customers.

• Initially, the cheaper electricity under this tariff was limited to a maximum of 15,000 kWh monthly for EV battery-charging companies. Once this limit was reached, they were charged under normal tariffs. However, the Kenyan government is considering removing this limit as adoption of EVs accelerates, which means charging companies will be reaching this limit sooner than before.  

• The reduction in EV charging costs comes amid accelerated investment in charging stations, especially in Nairobi. Companies like BasiGo, the country’s largest electric bus manufacturer, seeks to expand its charging network to nearby counties. ARC Ride is also undertaking a similar expansion spree as demand for charging and swapping services rises.  

Our take

• The reduction in charging costs is likely to encourage more individuals and businesses in Kenya to switch to EVs, driving growth in the country's electric mobility market. Further, as more service providers enter the market, competition will intensify, potentially resulting in even lower charging costs and innovative service offerings to attract EV users.

• Companies such as BasiGo and ARC Ride are already investing in expanding their networks, and this trend is expected to continue as demand for charging and swapping services rises, especially in urban and suburban areas.

• The Kenyan government’s consideration of removing the limit on the special EV charging tariff could lead to more favorable policies for charging providers and further boost the EV ecosystem. However, this could take time, considering the lengthy process it takes for such legislative proposals to take effect.