Kenya has signed a memorandum of understanding for a proposed $3 billion electric vehicle manufacturing project involving Chinese automaker Geely, the government said, as the East African country seeks to attract investment into clean transport and local manufacturing.
The project, being developed with Endelevu Enterprise Corporation and Geely, would include an electric vehicle assembly plant with capacity to produce 50,000 four-wheel vehicles a year and a separate facility capable of producing 100,000 two-wheelers and light electric vehicles annually, according to the government.
The plan also includes 1,000 solar-powered charging hubs and a digital platform designed to manage up to 100,000 electric vehicles.
President William Ruto witnessed the signing of the agreement at State House in Nairobi on Tuesday.
The government estimates the project could create about 2,000 direct jobs and more than 20,000 indirect jobs.
Kenya is seeking to develop local vehicle manufacturing as it moves to reduce its dependence on imported petroleum and promote electric mobility. The country generates most of its electricity from renewable sources, including geothermal, hydro, wind and solar.
Ruto said Kenya could use its renewable power resources to support the growth of electric transport and position the country as a manufacturing base serving regional markets.
The proposed project would have a combined annual production capacity of 150,000 vehicles, although it was not immediately clear when the facilities would begin production or where they would be located.
The $3 billion figure represents the proposed value of the investment under the memorandum of understanding, rather than capital already invested, and the government did not provide details on the financing structure or implementation timetable.
Geely, one of China’s largest automakers, has expanded its electric vehicle business in international markets as Chinese manufacturers seek to grow their presence overseas.
Kenya’s government has introduced measures to encourage electric vehicle adoption, including tax and policy incentives, while seeking to develop charging infrastructure and local manufacturing capacity.
The proposed Geely project would add to those efforts by combining vehicle production with charging infrastructure and digital services, potentially making Kenya a regional hub for electric mobility.
