Chinese-owned electric vehicle Henrey (EV) distributor Rideence Africa is investing Sh320 million in a Mombasa assembly plant, aiming to cut vehicle prices by up to 25 percent by leveraging tax incentives for local manufacturing.
The company has teamed up with Associated Vehicle Assemblers (AVA) to assemble electric hatchbacks from completely knocked-down (CKD) kits supplied by Beijing Henrey and 16-seater vans from Jiangsu Joylong. The investment covers assembly kit imports, plant fees, taxes, freight, and labour expansion to boost production. By the end of February, the plant is expected to assemble 132 hatchbacks and 20 vans. Rideence currently leases Henrey Xiaohu FEV hatchbacks to Nairobi taxi drivers with deposits of Sh50,000–Sh100,000 and daily fees of Sh2,400–Sh3,100, while outright sales range from Sh2.5 million to Sh2.8 million. Since entering the Kenyan market in November 2023, the firm has deployed over 180 EVs.
EV assemblers in Kenya benefit from exemptions on the 35 percent import duty for fully built vehicles, a cut in excise duty from 20 percent to 10 percent, and relief from VAT, allowing Rideence to offer more competitive pricing. “We plan to assemble five to ten vehicles daily at the Mombasa plant,” a spokesperson said, adding that sourcing local components such as tyres, upholstery, and leaf springs will further reduce costs.
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For Joylong vans, currently priced around Sh7 million excluding VAT, Rideence anticipates price reductions of up to 25 percent once full costs are factored in. Vehicle assemblers also enjoy reduced import declaration fees (2.5 percent vs 3.5 percent) and a lower Railway Development Levy (1.5 percent vs 2 percent). Since 2023, Rideence has invested over Sh1.4 billion in Kenya and expects its local content in the AVA partnership to exceed 25 percent by 2026, targeting 40–60 percent in the longer term. The company operates more than 16 charging stations across Kisii, Narok, Nakuru, Machakos, Nairobi, Kiambu, and Kajiado.
