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Kenya encourages taxi industry to switch to electric vehicles

A customer sits in a car at a store of Chinese automotive brand Neta in Nairobi, Kenya, on July 5, 2024. (Xinhua/Wang Guansen)

Chinese electric vehicles are transforming livelihoods of Kenyan taxi drivers.

NAIROBI, Kenya | Xinhua | Paul Mwai sat in his parked car as he scrolled through his cell phone to confirm his next customer on his digital app.

The 33-year-old taxi driver had just received an order to transport a client to a mall in Nairobi, the capital of Kenya, which was about 12 kilometers away from his current location.

It was a few minutes before noon, and Mwai had already ferried more than 10 passengers to their various destinations in the fast-growing capital and its satellite towns since morning.

“My electric vehicle (EV) is very popular among customers who are conscious about the environment,” Mwai said during a recent interview.

Mwai recently purchased a brand-new Neta V, a Chinese EV brand that has been introduced to the Kenyan market.

He was able to afford the 4-million-Kenyan-shilling (about 31,000 U.S. dollars) price tag thanks to a partnership between Moja EV Kenya, the local distributor of the Neta V brand, and a local bank that provides loans for the purchase of the vehicles.

Mwai said his decision to switch to an electric vehicle after operating a petrol-powered vehicle in the taxi business for the past seven years has yielded many benefits.

His daily income fluctuates between 6,000 and 7,000 shillings (about 46.5 to 54.2 dollars), while his expenses include 31 dollars to repay the car loan and 6.2 dollars in electric charging costs.

This compares favorably against the profit he generated daily when he operated a fossil fuel taxi car because earnings averaged 34.8 dollars per day, while expenses consisted of 9.3 dollars to repay the loan on the conventional car and 19.38 dollars for fuel.

Mwai noted that a key reason for his increased earnings is that e-vehicles have lower maintenance costs as they lack an engine and gearbox, while the cost of charging is lower than the cost of fuel for running the vehicle.

According to the Energy and Petroleum Regulatory Authority, as of December 2023, Kenya had 3,753 EVs, constituting 1.62 percent of the vehicles registered in the country.

Customers prepare for a test drive at a store of Chinese automotive brand Neta in Nairobi, Kenya, on July 5, 2024. (Xinhua/Wang Guansen)

Wang Aiping, chief executive officer of Moja EV Kenya, said most taxi drivers in the country use imported second-hand fossil fuel vehicles, leading to high maintenance, fuel, and operational costs that consume a significant portion of their daily earnings.

Wang noted that in contrast, choosing a brand-new Neta V electric vehicle offers a smooth, safe, and comfortable experience with a driving range of 380 kilometers on a full charge.

He added that the Neta V brand is ideal for the taxi business because it comes with a complimentary AC charging station that can be installed at home and a portable onboard charger that can be connected to any electric socket.

Wang said so far, Moja EV Kenya has entered into partnerships with seven taxi associations to sell them e-vehicles that will boost the earnings of their businesses.

Maurice Njagi, industrial development officer at the Ministry of Investments, Trade and Industry, said Kenya is keen to support the taxi industry in switching to e-vehicles because the move will help reduce carbon emissions from the transport sector.

Stephen Musembe, a taxi driver, also made the transition to an e-vehicle after operating a cab for the past three years despite the vehicles being new in the market.

The 34-year-old made the bold decision to use green mobility and, in the process, gained more customers as some passengers prefer to ride in a car with less noise while on the road.

Alok Srivastava, general manager of the taxi-hailing app, Yego, said drivers on his digital platform who use electric vehicles for their transport business earn more income as compared to their peers who rely on fossil fuel cars.

“We consider green vehicles to offer a premium service, and this translates into more revenue for our drivers,” Srivastava said. ■

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