Chinese firm signs deal with taxi associations to push electric mobility

In a major push towards reducing emissions and promoting environmental sustainability, Moja EV, a Chinese electric vehicle manufacturer, has signed 27 memoranda of understanding (MoUs) with taxi associations, companies, and financial institution.

The deals aim to transition Kenya's taxi fleet to electric vehicles (EVs) and support the nation’s environmental goals.

Moja EV chief executive Wang Pi on Friday said many taxis are outdated, second-hand gasoline vehicles that incur high maintenance and fuel costs, impacting both driver profitability and customer satisfaction.

“The majority of taxis in Kenya are outdated and fuel-inefficient. Upgrading to new energy vehicles will not only enhance the driving experience but also significantly lower operational costs,” he said during a press conference in Nairobi.

The plan seeks to support the shift to electric taxis, including financing options and the provision of Moja EV’s advanced electric vehicles.

Electric vehicle adoption in Kenya has been gradually increasing since 2018, with a significant surge in registrations from 2022 to 2023.

However, many existing electric vehicles suffer from limited range and poor condition, hindering their use for commercial purposes.

Globally, the trend towards new energy vehicles is on the rise, with China leading the charge. The country now boasts over 20 million new energy vehicles, with 7.4 million new additions in 2023 alone.

Moja EV plans to open showrooms in Mombasa and Kisumu by mid-2025 and also establish additional service centres and dealerships in Nakuru, Meru, Eldoret, and Malindi.

This expansion will be supported by a growing network of charging stations, increasing from 37 to 400 by 2026, ensuring coverage within 80 kilometres between cities.

Wang also announced plans to collaborate with taxi companies to equip them with DC fast chargers, which provide rapid recharging and are ideal for long-distance travel.