Chinese Company Opens Sh320 Million Electric Vehicle Assembly Plant in Mombasa

A Chinese owned electric vehicle dealer, Rideence Africa, has set up a Sh320 million assembly plant in Mombasa, marking a significant step in the local production of electric vehicles in Kenya. The facility is expected to assemble electric vehicles for the East African market and reduce retail prices by up to 25 percent, making electric mobility more accessible to a wider range of consumers. Hatchback electric vehicles from the company are currently priced at about Sh2.5 million to Sh2.8 million, with prices expected to drop once local assembly reaches full capacity.

The new plant is located within Mombasa’s industrial zone, taking advantage of the port city’s logistics network and proximity to import routes for vehicle components. According to the company, the facility will initially focus on assembling small electric cars suited for urban use, particularly hatchbacks designed for daily commuting, ride-hailing services, and fleet operations. Plans are also in place to expand the model range in the future depending on market response and policy support.

Rideence Africa says the decision to assemble vehicles locally was driven by high import duties, shipping costs, and the growing demand for affordable electric vehicles in Kenya and the wider region. By importing semi knocked down kits instead of fully built units, the company expects to lower costs while also contributing to local value addition. The price reduction is expected to make electric vehicles competitive with some petrol-powered cars in the same segment.

The assembly plant is projected to create direct and indirect jobs, including technicians, engineers, logistics workers and support staff. The company has indicated that it will work with local training institutions to build skills in electric vehicle assembly, diagnostics and maintenance. This is seen as an important step in preparing Kenya’s workforce for the transition to cleaner transport technologies.

Kenya’s electric vehicle market is still at an early stage, but interest has been growing steadily. Rising fuel prices, lower running costs of electric vehicles and increased awareness of environmental concerns have contributed to this trend. Electric vehicles are cheaper to operate, with lower energy and maintenance costs compared to internal combustion engine vehicles. However, high upfront prices have remained a key barrier for many buyers, something the Mombasa assembly plant aims to address.

Government policy has also played a role in attracting investment into electric mobility. Kenya has reduced excise duty on electric vehicles and components, and discussions are ongoing around further incentives such as tax breaks, charging infrastructure support and public fleet adoption. Industry players say consistent and clear policy direction will be critical in sustaining local assembly and encouraging more manufacturers to invest.

Rideence Africa plans to target both private buyers and commercial users, including taxi operators, delivery companies, and corporate fleets. Hatchback models, which dominate the initial lineup, are considered suitable for city driving due to their compact size and lower energy consumption. The company says its vehicles are designed to handle local road conditions and will be supported by after-sales service and warranty packages to build customer confidence.

Charging infrastructure remains a challenge for electric vehicle adoption in Kenya, but progress is being made. Charging points are gradually being installed in major towns, shopping malls, office parks, and residential developments. Rideence Africa says it is exploring partnerships with energy companies and property developers to expand access to charging solutions, including home and workplace chargers.

The Mombasa plant is also expected to serve as a base for exports to neighboring countries in East Africa, where similar market conditions exist. Countries such as Uganda, Tanzania, and Rwanda are also exploring electric mobility options, and regional demand could support higher production volumes over time. Increased scale could further reduce costs and strengthen the business case for local assembly.

Industry analysts say local assembly of electric vehicles could help Kenya position itself as a regional hub for clean transport manufacturing. While challenges remain, including financing, infrastructure and consumer awareness, investments like the Rideence Africa plant signal growing confidence in the market. If price reductions materialize as expected, electric vehicles could become a more common sight on Kenyan roads in the coming years, offering an alternative to petrol npowered cars for everyday use.