Executive Summary
The Intergovernmental Panel on Climate Change (IPCC) ranks Africa among the continents most vulnerable to climate change and variability (Trisos et al., 2022). As countries transition to green energy to address these challenges, they are also creating opportunities to address long-standing socioeconomic problems, including high youth unemployment. A third of working-age youth (15–35 years) are unemployed and discouraged (International Labour Organisation (ILO), 2021), and young people account for up to 60% of Africa’s unemployed (United Nations Educational, Scientific and Cultural Organisation (UNESCO), 2022). At current rates, only 100 million of the 450 million jobs needed over the next 25 years will be created in Africa (UNESCO, 2022).
For green technologies to maximise youth employment creation in Africa, government policies, regulations, and strategies, as well as interventions by development partners, enterprise support organisations, and financial institutions, must take into account the needs of young people in green industries. There is, however, a knowledge gap regarding the current realities of green jobs in Africa – including their scale, quality and accessibility to young people – and what would constitute an ideal scenario. Namely, a green economy that provides decent, inclusive and sustainable employment opportunities for African youth.
In Kenya, electric mobility (e-mobility) refers to the use of electricity to power transport systems as an alternative to fossil fuels, covering electric two- and three-wheelers (E2&3Ws), cars, buses, charging infrastructure and related digital solutions. The sector began to take shape in the late 2010s, with most of the nearly 40 companies operating today founded after 2017. Key players include local startups, international development partners, government agencies, and industry associations such as the Electric Mobility Association of Kenya (EMAK).
Moreover, the Kenyan e-mobility sector is male-dominated, with fewer than 2 out of every 10 businesses led by women, reflecting a broader continental challenge of low women's participation in the tech sector. Nonetheless, women-led businesses in the mobility sector demonstrate unique capital mobilisation efficiency, despite the persistently low funding for women-led tech startups in Africa. For instance, while less than 10% of private equity funding went to women-led tech startups in Africa in 2024, almost a third of e-mobility deals went to women-led startups.
The sector already provides jobs in vehicle assembly, sales, maintenance, charging infrastructure installation and battery swapping. With youth-led enterprises and a young workforce driving much of this innovation, e-mobility is fast becoming a significant source of both skilled and unskilled employment opportunities for Kenyan youth.
Taking Kenya’s e-mobility technology startup sector as a case, this study aimed to understand the key actors, policy context, barriers and enablers in the nexus between green technology and youth employment, and how Indigenous and traditional knowledge could catalyse technological innovation for startups. The report examines the existing national strategies and policy frameworks guiding the e-mobility sector and determines how they have shaped opportunities for youth employment.
The report also examines the specific roles that tech startups have played in the space, as well as the factors that have either inhibited or promoted their active contribution to innovation and development. Cognisant of gender dynamics, the study looked into the experiences of women innovators to identify the barriers that have limited their participation and potential. Another crucial focus was the uptake of locally developed technologies and Indigenous knowledge systems, which are often underutilised despite their relevance.
The e-mobility industry was selected because Kenya leads sub-Saharan countries in its technology. It is projected that by 2033, Kenya will account for a third of the jobs created by electric two-wheelers (E2Ws), the highest number in Africa (Breloff et al., 2024).
Key Findings
Policy and Regulatory Landscape
Kenya’s e-mobility policy landscape is in a developmental phase characterised by ambitious goals but limited implementation. There are two major policies for the sector: the National Energy Efficiency and Conservation Strategy (2020) and the Draft National E-Mobility Policy (2024). These provide Kenya with the foundational framework to achieve its NDCs, which emphasise the adoption of low-carbon and efficient transportation. However, the policies remain high-level and lack specific instruments to support domestic manufacturing, foster youth employment, or ensure the development of local content. Key policy constraints include;
- Incoherencies between youth employment policies and green tech sectors, such as e-mobility. While Kenya’s policy tools and regulatory frameworks for green tech management and youth employment reflect a commitment to sustainable development, significant challenges remain in aligning policies targeting green job creation for youth with youth employment initiatives in green tech sectors such as e-mobility. Most policies emphasise the promotion of decent and sustainable jobs but lack specific pathways to creating green jobs.
- Weak youth involvement in the development of e-mobility policies. The current Draft National E-mobility Policy and other National Transport Policies have youth content, but the policy development process excluded young people. There is currently no publicly verifiable formal channel for soliciting youth views and concerns during the policymaking process, unlike the NCCAP, which has dedicated mechanisms for youth engagement. The government risks misaligned priorities, low trust, and poor resource allocation when the policies are not aligned with the youth's interests and views.
- Lack of actionable steps to align existing incentives with youth-led e-mobility enterprises in Kenya. The government has not sufficiently explored youth-targeted policies, such as training programmes or apprenticeship stipends in the e-mobility sector. There is also no dedicated, actionable provision for youth access to finance or incentives in the Draft National E-Mobility Policy.
- Weak institutional coordination continues to undermine the plethora of policies and regulations on youth employment and e-mobility in Kenya. There appears to be moderate coherence between e-mobility policies and national youth employment policies. This coherence has the potential to establish synergies and complementarities in skills development, job creation, and income generation for youth in the sector. But, there is a need for greater alignment, synchronisation and cooperation among the diverse entities engaged in e-mobility and youth employment policies.
- Low female participation in Kenya’s e-mobility sector, despite the growing funding support for women-led mobility start-ups in Africa. In Kenya, less than a fifth of the e-mobility businesses are owned or led by women. As funding for women-led e-mobility startups grows, coherent policies are needed to create an enabling environment that attracts and promotes women’s participation in the mobility sector. For instance, more than a third of private equity capital deals in the mobility sector in 2024 were closed by women. However, there are no clear pathways in existing policies to support women-led e-mobility businesses.
- There is limited recognition, understanding, and utilisation of Indigenous knowledge in the formulation of e-mobility policies in Kenya. Few policy frameworks, like the NCCAP, recognise the concept of Indigenous knowledge, but in practice, most bureaucrats lack an understanding of it and thus cannot integrate it into policy tools and instruments. Despite the high recognition of research and development, there are no clear pathways for recognising and integrating research outputs in policymaking and implementation.
- Notwithstanding these constraints, there is a clear opportunity for e-mobility, and stronger governance systems are needed to unlock the opportunities for the youth. Surveys conducted with Kenyan e-mobility companies found that 51% of companies witnessed steady growth and 30% rapid growth in 2023–2024, attributable to supportive government incentives, infrastructure development and increasing market demand (Siemens Stiftung, 2024a). Furthermore, 88% expressed confidence that the sector would grow in 2025, driven by the government’s plan to have 5% of all new vehicles registered be electric by 2025, as targeted by the NEECS 2020–2025. However, e-mobility companies in Kenya still report policy and regulatory barriers, including limited access to financing, unclear regulations, high import duties, the absence of tax breaks and inadequate charging infrastructure.
Enablers and Barriers of Local Innovation, Tech Startups, and Youth Employment
Kenya’s e-mobility market is nascent but demonstrates strong growth potential. However, the institutional, policy and regulatory scaffolding needed to scale startups' innovation are limited and uncoordinated. E-mobility start-ups require targeted financing support, incentives, an improved workforce, and infrastructure to scale the challenges in the ecosystem. Thus, strategic alignment between policy and industry needs is required to create a robust business environment for start-ups in Kenya’s e-mobility industry. The identified enablers and barriers of e-mobility start-ups include;
- Financial constraints remain a significant barrier to scaling in the e-mobility sector. Most EV assembly and importers are early-stage and small-scale; they face cashflow constraints because they cannot negotiate favourable payment terms with suppliers (Shell Foundation, 2022). This results in assemblers having to pay up to six months in advance for imported E2W CKD kits (Shell Foundation, 2022). Moreover, the large financing gap between asset financing and actual inflows further compounds the limited financing available to start-ups. For instance, Kenya needs about US$8.9 billion in asset financing to reach 80% E2W penetration; however, actual inflows so far are estimated at US$50 million.
- Kenya’s financing landscape for e-mobility is diverse, despite the strong preference for government grants and other sources. In 2021, equity and crowdfunding accounted for a third of the funding obtained by Kenyan e-mobility companies (AEMDA, 2021). The remaining financing came from grants (34%) and other funding sources (33%), mostly from the founders’ own funds. A survey of 43 e-mobility companies in Kenya found that government and other grants were the most preferred sources of financing, followed by equity from venture capital (VC)/private equity/impact investors, and company cash flow (Siemens Stiftung, 2024a).
- A blend of sound business models, strategic partnerships and government incentives is a key enabler of successful funding. Investors prioritise businesses with clear revenue streams, scalability potential and sustainable long-term strategies. Additionally, favourable policies, such as tax reductions on EV imports and funding for renewable energy projects, boost investor confidence. Moreover, start-ups who invests in innovative technologies, demonstrate market demand, and build strategic partnerships are more likely to access funding.
- However, insufficient affordable permanent capital, combined with regulatory uncertainties and limited investor awareness, constrains e-mobility financing in Kenya. Establishing EV production facilities, charging stations, and battery management systems requires significant upfront investment and a relatively long period before profits are generated. As a result, they require permanent, affordable capital to build infrastructure and market access. However, available financing opportunities tend to be short-term and high-interest rate. These challenges, combined with regulatory uncertainties and investors' limited understanding of the market, affect start-ups' ability to access financing.
- There is a significant skills gap in the Kenyan e-mobility market, and existing capacity-building programmes are not designed with the youth in mind. Too few institutions offer the specialised degrees and diplomas needed to equip the workforce with the relevant expertise. Several of the technical skills identified as missing were sector-specific, such as battery design, battery manufacturing, and the management of used lead-acid batteries (ULAB). The government officials interviewed maintained that various capacity development and financial support programmes exist to promote growth in the e-mobility and green tech sectors. However, these initiatives are not specifically targeted towards youth, despite young people comprising a large portion of the labour force.
- Inadequate channels for promoting technology and knowledge transfer. Although the government, the private sector, and international partners collaborate on diverse capacity-building and knowledge-related issues, this collaboration has not translated into enabling technologies and knowledge transfer to close the skills gap. There are siloed interventions on capacity building and R&D, but these have not adequately promoted technology and knowledge transfer. Given that Kenya's national innovation system is not positioned to deliver the sophisticated skills and technology for the e-mobility sector, technology transfer is the most feasible pathway to close the technology and skills gap. However, no clear pathways have been established in the existing policies to stimulate and support technology transfer.
- Limited innovation incubation systems have stifled the effective integration of Indigenous knowledge in e-mobility interventions in Kenya. Indigenous knowledge is important to ensure that e-mobility is adaptable and meets the country's transport needs. However, there are few innovation hubs to support start-ups in integrating and effectively using Indigenous knowledge.
- Several opportunities for innovation in the e-mobility market exist, but there are no clear mechanisms to coordinate and invest in innovation. Key areas of interest for innovation expressed by Kenyan e-mobility companies include battery technology, charging infrastructure, artificial intelligence and data management, EV adoption and mobility, recycling, and alternative energy (Siemens Stiftung, 2024a). However, there are no established mechanisms to support R&D investment.
Policy Recommendations
The growth of the e-mobility sector in Kenya presents an opportunity to address the country’s economic, energy and environmental challenges. With a rapidly expanding market focused on E2&3Ws, e-mobility is strategically positioned to reduce the transportation sector’s heavy reliance on fossil fuels and help achieve Kenya’s GHS emission reduction targets. The sector’s alignment with the nation’s climate commitments, such as the NDCs and the NCCAPs, underscores its critical role in sustainable development. However, despite its potential, the e-mobility sector faces significant barriers, including high costs, limited local manufacturing and insufficient policy coherence to support youth employment and innovation. The following reforms are recommended;
- Create explicit policy targets for youth and gender inclusion in the e-mobility sector: To ensure women and youth are adequately included, these targets should be disaggregated by gender and age, especially under the National Electric Mobility Policy and its accompanying implementation plan.
- Institutionalise youth involvement in policymaking: The Ministries of Energy, Roads and Transport should emulate the NCCAP formulators and establish a youth consultation team when developing policies for the sector. In addition, industry associations such as EMAK should be encouraged to have youth wings or working groups that systematically contribute to policymaking.
- Improve policy coherence: Government agencies and industry representatives should work to improve the youth and employment content of e-mobility policies, while also urging the ministries responsible for youth and employment policies to address the e-mobility sector’s needs. This would improve policy coherence and ensure that the e-mobility sector is better aligned with broader national youth employment targets.
- Incorporate traditional knowledge and practices: Leverage local knowledge and practices to inform the design and implementation of e-mobility projects. Establish Indigenous knowledge teams, units or divisions within R&D platforms that focus on integrating Indigenous knowledge more effectively and explicitly into the sector’s R&D.
- Sponsor and encourage the creation of more intensive incubation programmes: Incubation programmes should be supported to enable more young people to move from the ideation stage to product commercialisation. When designing these programmes, the special needs of women entrepreneurs should be taken into consideration. In addition, acceleration programmes should be designed to make more local e-mobility companies investment-ready. Such programmes should provide long-term support that proactively prepares companies for the rigours of larger funding facilities that have stringent eligibility criteria.
- Promote technology transfer and capacity building: Facilitate the transfer of advanced e-mobility technologies and best practices to local operators. Invest in capacity-building programmes that equip e-mobility stakeholders with the skills and knowledge to implement and maintain cutting-edge solutions.
- Establish innovation hubs for technology development: Innovation hubs that provide young entrepreneurs with access to funding, mentorship and infrastructure to scale their ideas should be established. These hubs could focus on integrating Indigenous knowledge with modern technologies to develop innovative, locally tailored solutions to energy challenges.
- Create subcomponents within funding facilities that cater to the unique needs of youth and women: Funding facilities should create subcomponents that design funding tailored to the unique needs of youth and women. Such subcomponents may relax eligibility criteria for younger e-mobility companies but provide complementary technical assistance and project evaluation to ensure project quality.
This report was produced in the context of the Green Technology for Green Growth: Barriers and Drivers Project (2023 - November 2025) in partnership with the Mastercard Foundation. The views expressed do not necessarily represent those of the Foundation, its staff, or its Board of Directors.
