The Republic of Kenya, located in East Africa, is known for its strategic position on the equator, with the Great Rift Valley running through the country from north to south. It borders Somalia to the east, Tanzania to the south, Uganda to the west, Ethiopia and South Sudan to the north, and is bordered by the Indian Ocean to the southeast. Kenya's coastline stretches for 536 kilometers.

18% of the land area is arable, while the rest is more suited for livestock farming. With a total area of 582,646 square kilometers, Kenya's capital is Nairobi. The country is divided into 47 counties and has a population of 52.44 million (as of 2024, IMF), with 44 ethnic groups.

Geographical Advantages

Kenya's unique location provides it with several advantages, positioning it as a key player in global trade.

Nairobi, the capital, is a major transport hub in East and Central Africa, the largest city between Cairo and Johannesburg. Kenya is also a key participant in China's Belt and Road Initiative, receiving substantial Chinese investment for infrastructure projects.

The United Nations' African offices for agencies such as the World Food Programme, UN-Habitat, and the UN Environment Programme are all based in Nairobi. Mombasa, Kenya's second-largest city, has East Africa's most important deep-water port.

Demographic Advantage

Kenya's population has grown steadily, with a current population of over 57 million people, growing at a rate of over 2.2% annually.

The country has a young population, with three-quarters under the age of 30. Additionally, Kenya boasts a high literacy rate among young people aged 15-24, reaching 87%.

Motorcycle Taxi Market

Kenya has over 5 million motorcycle taxi operators, also known as "boda bodas." The rise of electric motorcycles (e-bikes) has become increasingly attractive, especially as fuel prices rise. Electric motorcycles are also a key component of Kenya's clean energy transition.

The Kenyan government launched a nationwide "Electric Transport" initiative in September last year to promote e-mobility, aiming for 200,000 electric two-wheelers on the roads by the end of 2024.

To encourage adoption, the government has reduced the VAT on electric vehicles from 20% to 10%, while maintaining the tax rate on fuel-powered vehicles. Plans also include more electric motorcycles, charging infrastructure, and battery swap stations in the coming years.

Energy Advantage

Kenya's power grid is largely driven by renewable energy sources, with hydropower being the primary source. Around 95% of Kenya’s electricity is renewable, and the country has an extensive power network. The power company estimates daily energy generation sufficient to charge 2 million electric motorcycles.

More than 75% of the country has access to electricity, with Nairobi’s supply rate being even higher.

Electric motorcycles in Kenya are primarily used for commercial purposes, making time a critical factor. As a result, battery swap stations have become popular. Riders can swap depleted batteries for fully charged ones in just 2-3 minutes, at a cost of approximately 300 Kenyan shillings (about $2) per swap, usually two times a day.

Capital Involvement

The rise of ride-hailing motorcycles has spurred the growth of startups, with over 50 companies active in East Africa alone. In 2022, Uber launched an electric motorcycle service in Kenya. The African company Spiro currently has 10,000 electric motorcycles across three countries in Africa and plans to build 3,000 battery swap stations in Kenya and Uganda.

Ampersand, a startup from Rwanda, announced in December 2023 that it had raised $19.5 million in funding led by the Ecosystem Integrity Fund (EIF), bringing its total funding to over $35 million. Ampersand, founded in 2016, became the first company in Africa to deploy electric motorcycles in 2019.

The company currently operates 32 battery swap stations in Kenya and Rwanda, serving 1,700 electric motorcycle customers, with plans to operate over 10,000 electric motorcycles by the end of 2024.

Roam, a Kenyan electric two-wheeler startup, raised $24 million in Series A funding in February 2024, marking a significant milestone for the African EV industry.

Since its founding in 2017, Roam has transitioned from retrofitting traditional motorcycles to designing and manufacturing electric motorcycles and buses. In 2023, Roam's production reached 50,000 units annually, and it operates Roam Hub, which integrates charging, battery leasing, and after-sales service.

In addition to market leaders like Roam, Spiro, and Ampersand, a variety of smaller electric motorcycle startups have emerged in Africa, including ARC Ride, Zemo, Kiri EV, and Ecobodaa. These companies offer diverse products and services, contributing to the growth of the African electric vehicle market.

Chinese Enterprises' Expansion

Chinese electric motorcycle manufacturers are actively expanding into Kenya and neighboring markets. Spiro has signed an agreement with Horwin Technology, a leading Chinese EV company, to sell 500,000 electric motorcycles in Africa over the next five years.

This deal, worth $1 billion, will cover emerging markets like Benin, Uganda, and Kenya. In Uganda, Spiro plans to introduce 140,000 electric motorcycles and build assembly factories in Benin and Togo.

In October 2023, Taiwan’s Taizhou and Ghana’s Kofa partnered to develop the Jidi electric motorcycle, which can be swapped at any Kofa Swap&Go battery swap station. The Jidi offers a range of 100 kilometers, and the two companies plan to deploy 5,000 battery swap stations and 200,000 electric motorcycles across Africa by 2030.

Market Outlook

While the global electric motorcycle market is primarily concentrated in Southeast Asia, Africa’s market is still in its early stages and represents a "blue ocean" of opportunity.

Motorcycles are an essential means of livelihood in many African countries, and the demand for electric motorcycles, which are cost-effective and convenient, is expected to grow steadily.

With many governments in the region supporting the "oil-to-electric" transition, the electric motorcycle market in Africa is poised for significant development.