The tax appeal tribunal in Kenya has recently upheld a decision by the Kenya Revenue Authority regarding the classification of e-bikes imported by Ebee Mobility Kenya. The tribunal ruled that the e-bikes should be considered as fully built units rather than assembly parts, which has implications for the tax rates applicable to the imports.
Initially, the Kenya Revenue Authority demanded back taxes from Ebee Mobility, which was later reduced after a review process. The tribunal’s decision emphasized that the key component defining an electric bike is the motor, not the battery. This ruling could have significant implications for the e-mobility industry in Kenya, affecting companies that rely on importing parts for local assembly.
The decision raises questions about the consistency of tax policies supporting the e-mobility sector in Kenya. It remains to be seen whether Ebee Mobility will appeal the ruling or seek policy revisions for clearer tax guidelines for partially assembled electric bikes. Other e-mobility startups may also need to reassess their import strategies or explore alternative assembly models to qualify for lower tax rates in light of this decision.