MojaEV launches 100 EVs in Kenya

October 31, 2024

From the newsletter

EV sales in Kenya are gaining momentum. Yesterday, MojaEV, a Kenyan auto dealer specialising in EVs, launched a fleet of 100 EVs. The company has partnered with Chinese automakers NETA AUTO and Skyworth Auto to introduce their EVs to the Kenyan market, specifically targeting the taxi sector. Their goal is to integrate these vehicles into the Uber app, expanding the EV options available to riders.

  • MojaEV launched in Kenya in May 2024. According to Kenya CEO Wang Aiping, they will initially import about 160 vehicles from China before the end of the year. 

  • They also have ambitious plans to partner with Kenya's Associated Vehicle Assemblers to assemble 250 electric vehicles each month for local consumption and export.

More details

  • Upon entering the Kenyan market in May, Neta Overseas Business General Manager Zhou Jiang said the firm will initially offer the Neta V model, retailing for 4 million Kenyan shillings (about $31,000) with a range of about 380 km on a full charge.  

  • The taxi business in Kenya is booming, with approximately 250,000 taxi drivers currently operating. The market is expected to grow significantly in the coming years, estimated to reach 5.05 million users by 2029.

  • Ride-hailing apps like Uber and Bolt have transformed the taxi market, bringing competition and fairness by providing more affordable and convenient transportation options for both tourists and locals. 

  • Other local ride-hailing app players like Littlecab, Mondo ride, and Farasi have also emerged, as the market continues to attract new entrants.

  • MojaEV is entering this dynamic market aiming to provide electric vehicles to taxi drivers and plans to integrate them with ride-hailing apps.  

  • This is not the first attempt to introduce EVs to the Kenyan taxi market; NopeaRide tried and failed. However, times have changed, and now there are better policies and growing awareness and interest among consumers that could potentially increase demand.

  • The government itself has expressed keen interest in adopting electric cars, with some of its parastatals like Kenya Power and KenGen acquiring EV fleets. 

  • Moreover, the government has formulated policies and targets, including the National Energy Efficiency and Conservation Strategy (2020), which envisions that by 2025, 5% of all registered vehicles in Kenya will be electric.

Our take

  • High fuel prices have recently pushed ride-hailing companies in Kenya to push for price increases. While this makes sense from a business perspective, consumers are wary of high prices and may seek cheaper alternatives.

  • When comparing trip costs on ride-hailing apps, EVs tend to be cheaper, with fares about three-quarters of those for ICE vehicles. The use of these EVs is generally increasing within the apps, clearly indicating that there is demand.

  • MojaEV's strategy of planning to integrate with ride-hailing apps could be a game-changer, especially in promoting the adoption of EVs by those riders who cannot afford to purchase them.