Ruto presides over signing of Ksh.389 billion electric vehicle investment deal

President William Ruto on Tuesday presided over the signing of a $3 billion (about Ksh.389.43 billion) Memorandum of Understanding (MoU) on electric vehicle manufacturing between the Government and Endelevu Enterprise Corporation at State House, Nairobi.

The integrated green mobility project will include the manufacturing and assembly of electric vehicles in Kenya, with the aim of boosting local production and creating jobs.

Speaking after the signing ceremony, President Ruto said the investment would help Kenya stop exporting jobs by shifting from importing finished vehicles to adding value locally.

The President said the MoU provides a framework for one of the largest electric mobility investments in the region.

"This memorandum establishes a framework for an integrated green mobility ecosystem, with a proposed investment of $3 billion. It is one of the largest electric mobility commitments in our region," he said.

Ruto said the proposal includes an assembly plant with a capacity to produce 50,000 four-wheel vehicles annually and a second plant for 100,000 two-wheelers and light mobility vehicles a year.

The project will also include 1,000 solar-powered charging hubs and a digital platform to manage up to 100,000 green vehicles.

"Behind these numbers are people. The project is expected to create about 2,000 direct jobs and more than 20,000 indirect jobs among suppliers, logistics firms and service providers," he said.

The President added that the project is expected to create up to 80,000 further opportunities in fleet management, operations and services.

Recalling his address to the United Nations General Assembly two weeks ago, Ruto said Kenya could not prosper by exporting raw materials and importing finished products.

"We will not prosper by exporting what we grow and mine, and importing what we use. Value must be added here. Skills must be built here. Jobs must be created here," he said.

He added: "In signing this MoU, we put that principle to work."

The President linked the electric vehicle project to the Dangote East African Refinery in Lamu, saying both investments were part of Kenya's broader industrialisation agenda.

"Barely a week ago, we broke ground for the Dangote refinery in Lamu. Today, in Nairobi, we sign for clean mobility. These are two investments with one direction."

Ruto said Kenya could pursue petroleum refining while simultaneously transitioning to electric mobility, arguing that both were necessary for the country's energy security and economic growth.

"Energy security has more than one road. We will refine what we and the region still need, and we will electrify both present and future opportunities. This is not a contradiction; this is strategic synergy. On either road, the value stays in Africa, and so do the jobs," he said.

The President said increased adoption of electric vehicles would reduce fuel import bills and ease pressure on the country's foreign exchange reserves.

"Because our electricity comes predominantly from renewable sources, we can power our transport with Kenyan geothermal steam, Kenyan wind, Kenyan sun, and Kenyan rivers," the President said.

He said importing fuel exposes the country to global price shocks, while generating its own power provides greater stability.

"None of this happened by accident. Investors commit capital when the direction is clear, and the rules are predictable. That is why we launched the National Electric Mobility Policy in February this year," he explained.

Ruto said the Government had also announced that the first 100,000 electric vehicles imported into Kenya would be duty-free.

"It is also why the Government has ordered 3,000 electric vehicles for our security and administration officers. We asked manufacturers to come and build in Kenya. Today's memorandum is the answer," he said.

He told Endelevu Corporation and its partner, Geely, that Kenya's ambition extends beyond the domestic market.

"We do not want to assemble for one market. We want to manufacture for East Africa and for Africa," he said.

Ruto said vehicles manufactured in Kenya and qualifying under the Rules of Origin of the East African Community would have access to a regional market of hundreds of millions of people.

"This is the industrial future we are building through the National Electric Mobility Policy and the National Automotive Bill now before Parliament," he said.

The President said Kenya expected the investment to deliver industrial capacity, jobs for young people, contracts for small and medium-sized enterprises, as well as technology and skills transfer.

He directed the Ministry of Investment, Trade and Industry, through KenInvest, to provide the necessary support to the investor.

He said the ministry would also work with relevant national and county institutions to ensure approvals, land and infrastructure are delivered within clear timelines.

"A memorandum is a framework. It is not the finish line. We must move quickly from signature to definitive agreements, from agreements to groundbreaking, and from groundbreaking to production," he said.

Ruto said Endelevu Corporation would be measured by what it builds, while the Government would be measured by how quickly it clears the way for the project.

Investment and Trade Cabinet Secretary Lee Kinyanjui said the MoU would help reduce Kenya's dependence on imported petroleum.

"President Ruto has prioritised the automotive industry in this country in an effort to boost local assembly and manufacturing of electric vehicles in Kenya," he said.

Endelevu Enterprise Corporation Chairman Susong Tong said the MoU marked another milestone in Kenya's automotive industry.

National Assembly Speaker Moses Wetang'ula, Cabinet Secretaries John Mbadi of the National Treasury and Davis Chirchir of Roads and Transport were also present.