Electric taxi-hailing service Ekorent expands presence in Kenya

Electric mobility company Ekorent has been making waves in Nairobi since the launch of its electric taxi-hailing service in August 2018. The company started with a minimum viable product, consisting of a few electric cars and charging stations, which they tested for eight months before expanding the fleet. According to CEO and Founder Juha Suojanen, the pilot phase received positive feedback from users, leading to the decision to increase the number of electric vehicles in Nairobi. Suojanen explained that Nairobi's compact size, approximately 30 by 30 kilometers, makes it an ideal city for electric cars. Most taxi traffic in the city takes place within this area, minimizing concerns about driving range. Additionally, the moderate temperatures in Nairobi are conducive to electric vehicles, unlike regions with harsh winters that can affect battery performance. Despite encountering challenges such as delays in meeting target fleet size, Ekorent remains optimistic about the market potential in Nairobi. The initial plan to have 150 cars by 2020 has been adjusted, with a current target of 100 cars by the end of the year. Suojanen cited regulatory changes by the Kenyan government as a factor contributing to the slower-than-expected growth in the fleet. In June of last year, the Kenyan government revised tariffs on electric cars, initially increasing taxes on used electric vehicles before rolling back to previous levels following industry feedback. However, Suojanen highlighted a significant issue related to the Kenyan Revenue Authority's digital system for determining import duties and taxes on used electric cars. The system bases its calculations on the price of new electric cars, which are not commonly sold in Kenya, leading to inaccurate tax assessments on imported used vehicles. Despite these challenges, Ekorent remains committed to providing sustainable and eco-friendly transportation options in Nairobi. The company's expansion plans reflect a growing demand for electric mobility solutions in the region, as more consumers and policymakers prioritize environmentally conscious transportation alternatives.