Kenya’s tax appeal tribunal has ruled against Ebee Mobility Kenya, upholding the Kenya Revenue Authority’s (KRA) decision to classify its e-bike imports as fully built units rather than assembly parts. This means Ebee’s shipments will attract a 25% import duty, 16% VAT, and additional excise charges—significantly increasing costs for the e-mobility startup.
Ebee had argued that the bikes were imported in parts for local assembly, qualifying for a lower 10% tax rate. However, KRA determined that the imports were nearly complete e-bikes, missing only batteries, and should be taxed as fully assembled units. The tribunal emphasized that the motor—not the battery—is the defining component of an electric bike.
This ruling could have broader implications for Kenya’s e-mobility sector, affecting startups like BasiGo, Ampersand, and Spiro that rely on importing parts for local assembly. It also raises concerns about the consistency of Kenya’s tax policies in supporting EV adoption.
Read the full news here: TechCabal