Solutions Africa is working to catalyze the transition of the tuk-tuk market in Kenya to electric.
Launched in December 2021, Solutions Africa LTD plans to fill the gap in the market and introduce electric 3-wheelers in the region. Solutions Africa imports completely knocked-down kits and then works with Associated Vehicle Assemblers to assemble the vehicles in Mombasa. Kenya incentivizes the local assembly of vehicles imported as fully knocked-down kits by exempting them from import duties and taxes. Only VAT is applicable.
Fully built imports would cost a lot more on the market and would not be as competitive with their ICE equivalents. To further ensure that its electric tuk-tuks are competitive price-wise, the first generation comes with lead acid batteries. This was a strategic move to enter the market at close to parity with ICE equivalents, as lithium-ion versions would cost close to $2,000 to $3,000 dollars more.
Currently, Solutions Africa owns, operates, and manages the fleet of electric tuk-tuks that it has introduced in Mombasa. Due to the weight and bulkiness of the lead acid batteries, Solutions Africa currently charges the tuk-tuks directly, but is working on a battery swap model as well for when they introduce the lighter and easier to swap lithium-ion options. It takes between 6 to 8 hours to fully charge the lead acid batteries in the tuk-tuks.
Solutions Africa is also working with the key players in Kenya’s 2- and 3-wheeler financing sector to allow operators in the sector to get flexible payment terms and lower the barriers to adoption. I am looking forward to seeing these electric tuk-tuks in action soon.
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