Powering Africa’s Electric Fleet Transition: Why South Africa Must Follow Kenya’s Lead on E-Mobility Tariffs

Main Facts

• Policy Disparity: While several African nations—including Malawi, Zambia, Rwanda, Mauritius, and Ethiopia—have introduced aggressive incentives such as eliminating import duties and taxes on electric vehicles (EVs) and charging infrastructure, South Africa lags behind. Imported EVs in South Africa face higher import duties and taxes than their internal combustion engine (ICE) equivalents.
• The Kenyan Blueprint: Kenya has successfully implemented a dedicated e-mobility electricity tariff. EV users are billed KShs. 16/kWh ($0.12) during peak hours and KShs. 8/kWh ($0.06) during off-peak hours—significantly cheaper than standard commercial rates (~20 KSh./kWh or $0.15) and residential rates (~30 KSh./kWh or $0.23). Kenya recently removed a restrictive 15,000 kWh monthly consumption cap, unlocking massive potential for commercial fleet operators.
• South African Fleet Pressures: Golden Arrow Bus Services (GABS)—a 160-year-old transit operator with 1,200 buses, including 120 electric models—highlighted the urgent need for supportive tariffs. Despite utilizing off-peak charging and onboard solar arrays, GABS faces a staggering 25% off-peak electricity tariff hike from the City of Cape Town, squeezing operational margins.
• Eskom’s Operational Turnaround: South Africa’s national utility, Eskom, has achieved over 504 consecutive days without load-shedding (as of mid-2026), boasting an Energy Availability Factor (EAF) of 68.11% and an 80.49% year-on-year reduction in diesel expenditure. However, Eskom simultaneously faces a 6% decline in overall electricity sales, presenting a unique opportunity to boost grid demand by fostering EV adoption.

Chronology of E-Mobility and Energy Developments

The landscape of African electric mobility has evolved dramatically over the past several years, characterized by contrasting regulatory approaches and rapid infrastructure scaling in East and Southern Africa.

The Rise of East African Incentives

In the early 2020s, countries like Rwanda, Ethiopia, and Kenya recognized the dual threat of volatile fossil fuel import bills and urban air pollution. While Kenya initially held back on broad tax holidays for vehicle imports compared to nations like Ethiopia, it innovated on the operational side by introducing a specialized e-mobility tariff through Kenya Power.

By structuring the tariff to heavily favor off-peak charging, Kenya Power incentivized commercial fleet operators and two-wheeler networks to manage grid demand proactively. Initially, the program faced structural limitations, notably a 15,000 kWh monthly consumption cap that stifled large-scale bus fleets and heavy battery-swapping operations. Recognizing this bottleneck, the Kenyan government formally removed the consumption cap, clearing the path for unfettered commercial growth.

South Africa’s Stagnation and Transit Realities

Conversely, South Africa’s regulatory environment has remained largely stagnant regarding federal EV incentives. Although the country boasts a sophisticated automotive manufacturing sector, national policy has failed to introduce tax parity for electric cars, leaving imported EVs penalized by higher tariffs than fossil-fuel vehicles.

This regulatory vacuum came to a head during the Africa E-Mobility Week Forum held in Stellenbosch, South Africa. Industry leaders, including representatives from historic transit operators like Golden Arrow Bus Services (GABS), converged to discuss the operational hurdles of transitioning mass transit to electric power without institutional backing. GABS, which integrated its first electric buses to combat skyrocketing diesel prices, warned that municipal tariff structures—such as Cape Town’s recent 25% off-peak tariff hike—threaten to undermine the financial viability of commercial electrification.

Supporting Data and Financial Metrics

To understand the economic viability of e-mobility programs across the continent, industry analysts look closely at utility revenue reports, energy pricing tiers, and grid performance metrics.

Kenya Power Revenue Integration

Data released by Kenya Power highlights the tangible financial impact of embracing e-mobility:

• Overall Financial Growth: Total electricity revenue climbed by KShs. 18.96 billion to reach KShs. 238.24 billion. Total sales expanded by 12%, jumping from 11,403 GWh to 12,777 GWh year-on-year.
• E-Mobility Revenue Surge: Revenues generated specifically from officially registered e-mobility metering platforms surged from KShs. 65.6 million in 2025 to KShs. 185.3 million in the 2026 financial year.
• Note: This figure captures only registered commercial operators. Unmeasured volumes of electricity continue to be drawn by residential and small business owners charging EVs and electric two-wheelers outside the formal e-mobility registry.

Comparative Tariff Breakdown (Kenya vs. South Africa)

Eskom’s Operational Recovery

South Africa’s national utility, Eskom, has experienced a historic operational recovery, which alters the feasibility calculus for domestic EV charging:

• Energy Availability Factor (EAF): Reached 68.11%, marking the strongest performance in six years.
• Load-Shedding Hiatus: South Africa recorded 504 consecutive days without load-shedding since May 16, 2025.
• Cost Reductions: Unplanned outages have decreased, and diesel expenditure dropped by 80.49% year-on-year.
• Demand Crisis: Despite grid stabilization, Eskom’s overall electricity sales fell by over 6% during the financial year, creating an urgent corporate need for new, predictable load demand.

Official Responses and Stakeholder Perspectives

The debate surrounding e-mobility policy in Southern Africa has drawn sharp commentary from utility executives, transport operators, and industry advocates.

Gideon Neethling, Golden Arrow Bus Services (GABS)

Speaking on a high-profile panel at the Africa E-Mobility Week Forum in Stellenbosch, Gideon Neethling emphasized the existential need for sensible utility pricing. GABS currently operates 1,200 buses—120 of which are fully electric—with an additional 40 electric buses slated to join the fleet.

Neethling noted that energy savings from the existing electric fleet have successfully shielded commuters from extreme diesel price volatility. However, he sharply criticized municipal rate adjustments:

"The City of Cape Town introduced a modest consumer-friendly lower electricity tariff hike of 7% during peak times, but GABS doesn’t use much electricity during that time. The city introduced a 9% hike for standard rates, and a whopping 25% tariff hike was introduced for the off-peak period in the current financial year. Since this is when GABS does most of its charging, it is really feeling the pinch."

Neethling called for an urgent overhaul of electricity pricing frameworks to prevent punitive rates from putting sustainable transit operators “out of business.”

Eskom and Municipal Authorities

While Eskom has successfully restored generation capacity and eliminated load-shedding, it has yet to introduce a nationwide, harmonized e-mobility tariff structure comparable to Kenya Power’s model. Industry advocates argue that with Eskom struggling against falling domestic electricity consumption, rolling out a specialized off-peak EV tariff would create a mutually beneficial commercial ecosystem. By encouraging overnight and off-peak charging, Eskom could absorb excess baseload capacity while aiding fleet operators in cutting operational overhead.

Implications for the Broader African Energy Transition

The intersection of electric mobility and national utility management holds profound implications for the African continent’s economic future.

Macroeconomic Savings and Foreign Currency Preservation

For countries heavily reliant on imported fossil fuels, scaling up electric bus and delivery fleets directly reduces foreign currency drainage. Transport sectors across Sub-Saharan Africa consume billions of dollars annually in refined petroleum products. Transitioning to locally generated electricity—often bolstered by rapidly expanding utility-scale and rooftop solar installations—keeps energy expenditures within domestic economies.

Grid Modernization and Demand Management

Critics of EV adoption often point to the potential strain electric vehicles could place on fragile electrical grids. However, the models pioneered in Kenya prove that well-structured, time-of-use tariffs can transform EVs from a grid liability into an asset. By removing consumption caps and offering deeply discounted off-peak rates, utilities can encourage overnight charging routines that flatten load curves and optimize underutilized generation capacity.

The Path Forward for South Africa

South Africa stands at a crossroads. Its automotive sector remains a cornerstone of industrial manufacturing, yet its domestic market risks falling behind global and regional EV trends due to prohibitive import taxes and unsupportive municipal utility tariffs. If policymakers and municipal distributors—such as Eskom and major metro councils—choose to emulate Kenya’s progressive e-mobility pricing, South Africa could simultaneously solve its declining electricity sales dilemma, accelerate decarbonization, and provide much-needed financial relief to commercial transit operators and everyday motorists alike.