Chinese-Backed Rideence to Invest KSh 320 Million in EV Assembly Plant in Mombasa

By Benadeta Mwaura - Reporter

Kenya, February 02, 2026 - Rideence Africa Limited, a Chinese-backed electric mobility firm, has announced a KSh 320 million investment to begin local assembly of electric vehicles (EVs) at the Associated Vehicle Assemblers (AVA) plant in Mombasa, marking a significant milestone in Kenya’s push toward green mobility and automotive manufacturing.

The move is part of a broader localisation strategy that transitions Rideence from solely importing vehicles to assembling EVs domestically, reducing costs and strengthening the local industrial base.

Under the plan, Rideence will assemble 152 electric vehicles by the end of February 2026, including 132 Henrey electric taxis and 20 Joylong electric high-roof matatus, using completely knocked-down (CKD) kits.

This assembly phase, the first dedicated EV assembly line in Kenya, represents a strategic shift toward value addition within the country’s automotive sector.

Rideence has been operating in Kenya for the past three years, deploying more than 180 fully built EVs imported from China, including electric matatus and taxis, which the company describes as forming East Africa’s largest EV ride-hailing fleet.

Through the investment, Rideence aims to reduce reliance on imports, generate cost-efficient vehicles, and address longstanding issues around high import duties and logistics costs.

Managing Director Minnan Yu highlighted that the company has already invested over KSh 1.4 billion in Kenya since 2023 and is now “moving beyond importing solutions to co-creating them locally,” with a focus on increasing local parts procurement to more than 25 percent by 2026.

The long-term ambition is to push local content to 40–60 percent, which would deepen the domestic supply chain and support industry growth.

The latest phase of assembly is expected to create at least 3,000 direct and indirect jobs across vehicle assembly, charging infrastructure, logistics and related services.

Rideence’s activities have already contributed to employment; the company reports having created between 550 and 680 direct jobs since 2023.

Beyond manufacturing roles, Rideence is expanding Kenya’s EV ecosystem by increasing its charging network from 16 to an expected 100 stations nationwide by the end of 2026, while also offering technical training and exploring collaborations, including discussions with the University of Nairobi, on electric vehicle technology programmes to build local expertise.

Rideence said the company’s lease-to-drive model is helping drivers switch to electric mobility at reduced operating costs.

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Under the arrangement, drivers lease Henrey EV taxis at KSh 2,400 per day while spending roughly KSh 400 on charging costs for a range of up to 200 km, significantly lower than petrol expenses that can exceed KSh 2,000 for similar distances.

Local assembly is expected to make EVs even more affordable for fleet operators and individual buyers, especially given that Kenya’s existing tax structure can raise the landed cost of imported EVs significantly, sometimes more than doubling the purchase price due to layered duties and excise taxes.

Local assembly helps mitigate some of these cost pressures and supports broader accessibility.

Rideence’s investment takes place amid a wave of electric vehicle assembly commitments in Kenya, including MojaEV’s planned EV assembly plant in Mombasa, which intends to produce thousands of units annually and create thousands of jobs across the value chain.

Analysts say these developments highlight Kenya’s potential to become a regional hub for electric mobility production, especially as the country implements policies to encourage localisation and industrialisation in the automotive sector.

Government incentives, such as tax exemptions on imported components under Kenya’s National Automotive Policy, have been credited with revitalising local assembly and attracting investors, while initiatives like duty remission schemes and potential credit financing support further enhance the business environment.

Industry observers say Rideence’s Mombasa assembly plant, the first dedicated EV line of its kind in Kenya, could accelerate the country’s transition to low-emission transport, reduce dependence on imported fossil fuels, and contribute to broader goals around urban air quality and climate action.

The localization of EV production also supports Kenya’s manufacturing agenda, creating a platform for technical skill development, supply chain growth, and diversification of the automotive sector.