Local Company awarded electric bus assembling tender

Thika,

Wednesday, September 20, 2023

KNA by Hellen Lunalo

Thika based Kenya Vehicle Manufacturers (KVM) has been awarded the contract to assemble one of Kenya’s first fully electric shuttle buses dubbed Roam Move.

The tender awarded by Swedish-Kenyan electric vehicle firm Roam Electric seeks to benefit from tax incentives set out by the government as companies assembling electric vehicles in the country enjoy a number of tax incentives including zero percent excise duty, 10 percent import duty and zero-rated value-added tax (VAT).

In a press statement, Roam Electric Country Sales Executive Dennis Wakaba said they were happy to introduce Roam Move, Kenya’s very own electric shuttle bus that was equipped with a 170 kilowatts per hour (kWh) battery pack and a 51-passenger capacity.

The company stated that they were looking to create a mobility solution that was inclusive, modern, efficient and sustainable.

“We are thrilled to introduce Kenya’s very own electric shuttle bus, an achievement that aligns perfectly with our vision of fostering sustainable transportation solutions that make a positive impact on our environment and communities. The bus will be assembled in its entirety in Kenya by our able partners Kenya Vehicle Manufacturers, a move that exemplifies Roam’s commitment to supporting local manufacturing while advancing the nation's sustainability goals,” Wakaba said.

“Our electric mass transit bus is priced to compete with diesel buses as it is designed to last longer, and is cheaper to run. We have also ensured a localized manufacturing approach and a lease-to-own financing system that will contribute to reasonable maintenance costs. This, combined with significant operational savings resulting from reduced maintenance requirements of electric buses will most importantly, lower electricity expenses in contrast to rising fuel costs and guarantee a swift return on investment to owners. As the bus is fully electric, we will also eliminate all tailpipe emissions while also reducing noise pollution in cities, he added.

Kenya Vehicle Manufacturers shareholders include the National Treasury at 35 percent, Cooper Motor Corporation (CMC) at 32.5 percent and DT Dobie at 32.5 percent and is behind the assembling of multiple vehicle brands like Urysia (Peugeot) and CFAO (Corporation for Africa & Overseas motors, formerly known as Toyota Kenya Limited) that locally assembles Volkswagen cars.

 Kenya has seen a growing demand for environmentally friendly transport with start-ups and local companies investing in the infrastructure and manufacturing of vehicles locally. 

E-mobility is a critical need in the global push to reduce pollution with clean-powered vehicles that will significantly cut the reliance on diesel and petrol. Electricity generator KenGen and supplier Kenya Power are currently angling to set up charging hubs of electric mobility units, as part of the government’s plan to diversify into the green mobility business which is expected to grow amidst plans to address climate change and pollution.

Courtesy; KNA